SIP for Child Education

These days, child education has become costly, but an SIP (Systematic Investment Plan) is a smart way to secure their future. With SIP (Systematic Investment Plan), you can invest small amounts regularly in mutual funds and build a good corpus over time. Mutual funds are a popular choice for child education due to their long-term growth and tax-efficient returns.

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Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹11,852

NAV

170.36

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.53 20.26 18.32 %

Instant tax receipt
AUM (Cr)

₹3,206

NAV

70

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.31 16.65 15.4 %

Instant tax receipt
AUM (Cr)

₹2,581

NAV

72.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.84 15.55 15.22 %

Instant tax receipt
AUM (Cr)

₹34,475

NAV

79.08

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.43 15.78 14.84 %

Instant tax receipt
AUM (Cr)

₹5,492

NAV

82.08

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.48 14.18 14.48 %

Instant tax receipt
AUM (Cr)

₹422

NAV

67.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11 13.18 14.22 %

Instant tax receipt
AUM (Cr)

₹4,838

NAV

68.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.27 14.26 14 %

Instant tax receipt
AUM (Cr)

₹206

NAV

47.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.67 13.93 13.6 %

Instant tax receipt
AUM (Cr)

₹136

NAV

55.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.85 13.53 13.41 %

Instant tax receipt
AUM (Cr)

₹3,452

NAV

40.62

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.72 12.32 13.41 %

Instant tax receipt
AUM (Cr)

₹3,206

NAV

70

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.31 16.65 15.4 %

AUM (Cr)

₹2,581

NAV

72.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.84 15.55 15.22 %

AUM (Cr)

₹422

NAV

67.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11 13.18 14.22 %

AUM (Cr)

₹4,838

NAV

68.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.27 14.26 14 %

AUM (Cr)

₹206

NAV

47.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.67 13.93 13.6 %

AUM (Cr)

₹136

NAV

55.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.85 13.53 13.41 %

AUM (Cr)

₹3,452

NAV

40.62

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.72 12.32 13.41 %

AUM (Cr)

₹7,369

NAV

149.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.46 13.47 13.14 %

AUM (Cr)

₹3,154

NAV

68.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.44 13.13 13.11 %

AUM (Cr)

₹77,698

NAV

192.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.7 10.83 11.43 %

AUM (Cr)

₹11,852

NAV

170.36

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.53 20.26 18.32 %

AUM (Cr)

₹34,475

NAV

79.08

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.43 15.78 14.84 %

AUM (Cr)

₹5,492

NAV

82.08

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.48 14.18 14.48 %

AUM (Cr)

₹10,579

NAV

65.54

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21 21.16 22 %

AUM (Cr)

₹13,736

NAV

121.03

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.12 22 19.03 %

AUM (Cr)

₹1,042

NAV

74.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.89 14.53 15.03 %

AUM (Cr)

₹13,101

NAV

70.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.38 13.44 13.29 %

AUM (Cr)

₹1,050

NAV

53.97

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.5 12.81 12.7 %

AUM (Cr)

₹3,457

NAV

59.76

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.3 12.8 12.6 %

AUM (Cr)

₹498

NAV

56.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.22 11.53 11.43 %

AUM (Cr)

₹224

NAV

27.39

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.14 9.12 10.11 %

AUM (Cr)

₹847

NAV

41.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.55 6.81 7.25 %

AUM (Cr)

₹532

NAV

38.63

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.12 6.71 6.94 %

AUM (Cr)

₹131

NAV

30.34

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.83 6.56 6.84 %

AUM (Cr)

₹72

NAV

41.78

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.37 6.41 6.79 %

AUM (Cr)

₹183

NAV

35.22

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.07 6.31 6.78 %

AUM (Cr)

₹166

NAV

47.35

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 4.56 5.89 6.56 %

AUM (Cr)

₹91

NAV

39.39

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.09 6.4 6.56 %

AUM (Cr)

₹16,641

NAV

50.39

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.14 6.21 6.55 %

AUM (Cr)

₹1,080

NAV

47.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.53 6.26 6.53 %

AUM (Cr)

₹896

NAV

101.55

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.49 15.95 15.39 %

AUM (Cr)

₹348

NAV

47.72

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.2 10.09 10.23 %

AUM (Cr)

₹206

NAV

69.66

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.9 9.95 9.97 %

AUM (Cr)

₹4,753

NAV

39.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.13 9.17 9.9 %

AUM (Cr)

₹62

NAV

60.35

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.07 8.91 9.85 %

AUM (Cr)

₹438

NAV

102.48

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.92 8.94 9.74 %

AUM (Cr)

₹765

NAV

39.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.59 9.37 9.52 %

AUM (Cr)

₹20,171

NAV

71.6

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.44 8.79 9.51 %

AUM (Cr)

₹260

NAV

30.67

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.07 8.92 9.28 %

AUM (Cr)

₹1,682

NAV

43.42

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.18 9.35 9.26 %

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What is SIP for Child Education?

SIP for child education is a smart way to save for your child’s future. It allows you to invest small, fixed amounts regularly in mutual funds. Over time, this helps you build a good amount of money for higher education. SIPs offer benefits like disciplined savings, compounding, and rupee cost averaging. You can choose funds based on your risk level and duration. Starting early ensures you have enough funds when needed.

How SIP for Child Education Works?

Let us understand the working of the best SIP plan for child education from the following steps:

  • Choose a Mutual Fund Scheme: Select an equity or hybrid mutual fund that suits your risk profile and long-term education goals.

  • Decide the SIP Amount: Use an education cost calculator to estimate future expenses and set a monthly SIP amount accordingly.

  • Set the Investment Tenure: Start early and aim for a tenure aligned with your child's education timeline to leverage compounding.

  • Invest Regularly: Contribute a fixed amount each month and automate the process to ensure consistency and discipline.

  • Track and Adjust: Review your SIP performance periodically and adjust the amount if needed based on changes in income or education costs.

  • Redeem When Needed: Withdraw funds as per your child’s education milestones while being mindful of taxes on the redeemed amount.

SIP Calculator

I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
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Total Wealth ₹1.03 Cr
View Plans
I want to save
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
Equity Pension
12.43%
Equity Pension
Opportunities Fund
14.84%
Opportunities Fund
High Growth Fund
19.03%
High Growth Fund
Opportunities Fund
12.6%
Opportunities Fund
Multi Cap Fund
22%
Multi Cap Fund
Accelerator Mid-Cap Fund II
14.48%
Accelerator Mid-Cap Fund II
Multiplier
16.41%
Multiplier
Frontline Equity Fund
14%
Frontline Equity Fund
Virtue II
15.4%
Virtue II
Equity Fund
14.16%
Equity Fund
Blue-Chip Equity Fund
10.12%
Blue-Chip Equity Fund
Global Equity Growth Fund
16.13%
Global Equity Growth Fund
Growth Opportunities Plus Fund
15.03%
Growth Opportunities Plus Fund
Equity Top 250 Fund
11.43%
Equity Top 250 Fund
Future Apex Fund
13.41%
Future Apex Fund
Pension Dynamic Equity Fund
11.11%
Pension Dynamic Equity Fund
Accelerator Fund
13.6%
Accelerator Fund

SIP Calculator to Estimate Investment for Child Education

A SIP Calculator helps you estimate how much you need to invest monthly to meet your child's education expenses. This tool makes it easier to determine the amount of monthly contribution needed, allowing you to stay on track with your child's education goals in the future.

To estimate the monthly investment for your child's education, use the SIP calculator with the following details:

  1. SIP Calculator for Child Education Fund:

    Select “I Know My Goal Amount” option. Enter your child education goal, investment duration, and expected return-

    • Child Education Fund Estimate: 20 lakhs

    • Investment Duration: 15 years

    • Expected Return: 15% annually.

  2. SIP Calculator Results:

    The calculator will give the following results-

    • Monthly Investment Required: ₹3,250

    • Total Investment: ₹5,84,000

    • Amount Required: ₹20,00,000

    • Wealth Gained from SIP: ₹14,20,000

Key Points to Consider Before Investing in a SIP for Child Education

You should consider the following points before you start saving for your child’s education through a SIP plan:

  • Start Early: Begin investing as soon as possible. The more time your money has, the better it grows.

  • Estimate Future Costs: Find out how much education will cost in the future and plan your SIP based on that.

  • Choose the Right Fund: Pick a fund that matches your risk level and how long you want to invest.

  • Invest Regularly: Invest every month. This helps you stay disciplined and benefit from market fluctuations.

  • Review Periodically: Keep checking the performance of your fund and make changes if needed.

  • Consider Inflation: Education costs will rise over time, so plan for inflation in your SIP amount.

  • Stay Disciplined: Don’t take money for other needs. Let it grow for your child’s education.

Start Small & Build Your Wealth For A Brighter Tomorrow Start Small & Build Your Wealth For A Brighter Tomorrow

Conclusion

SIP is a reliable and efficient way to plan for your child’s education expenses. It helps you grow wealth steadily while managing risks through systematic investments. Starting early gives you a significant advantage, allowing the power of compounding to work in your favor.

SIP Hub
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FAQs

  • What is a child education SIP?

    SIP for child education is a Systematic Investment Plan where you invest a fixed amount regularly in mutual funds to build a corpus for your child's education.
  • Why should I invest in SIP for child education?

    SIP helps you save and grow your money over time for your child’s education, offering the potential to beat inflation and provide a significant fund when needed.
  • What is the minimum SIP investment amount for child education?

    The minimum investment amount for an SIP for child education can be as low as ₹100 per month, depending on the mutual fund.
  • How can SIP for child education benefit my child?

    SIP can accumulate a large sum over time, providing the financial resources required to cover education expenses such as tuition, books, and other costs.
  • Is SIP for child education risk-free?

    No, SIPs are subject to market risks. The money is invested in mutual funds, which can fluctuate in value. However, investing over a longer term can help manage this risk.

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Invest ₹10K/Month & Get ₹1 Crore# Tax-Free*
*under 10(10D)

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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