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Home >Money >Q&a >How can I save for my MBA programme fees?

I am 23 and recently started working, earning 65,000 a month. I don't have any liability as of now by god's grace. It will be very helpful if you please answer my question:

How should I invest my money, if I don't have an expenditure of more than 10,000 a month for at least next 2-3 years. Keeping the points in my mind like saving taxes. I keep my future goals to be in interval of 10 years. And I aspire to undergo an MBA program in next 2-3 years and how should I manage these investment expenses in those 2 years. Keeping SIP, Equity market, FDs etc as an investment option?

Garvit Rastogi

It is always good to assign a destination to your savings and investments in the form of financial goals. You have mentioned a short term goal of further studies in the coming 2-3 years and a long term goal of 10 years, so you have already worked upon the first step of identifying financial goals for yourself. 

As a next step, try to work on how much you would need for your MBA program. Since this goal is coming up in a couple of years and if you require a reasonable amount for it, then you will have to consider investing in non-equity investment instruments as equities carry high risk in short term. You can do SIPs in Short Duration Debt Funds, Banking & PSU Debt Funds and Corporate Bond Funds to accumulate money for your education. 

Just to give you some idea, you will be able to accumulate around 22 lakhs if you invest 55,000 per month for 3 years in the above-mentioned debt funds, assuming a 6.50% return p.a. Hence, try to work on how much you need for your MBA program, which could be your top priority at present. This will also help you work on the right strategy for your monthly investments.

You can consider Equity Linked Saving Schemes (ELSS) to save tax at the same time this will also work as an equity-based investment for your long term goals as well. You can invest in a blend of Index Fund, Flexicap funds & ELSS for your long term goals if your monthly investment permit you to invest after taking care of your near term goal.

Answered by Harshad Chetanwala, founder MyWealthGrowth.com.

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