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Business News/ Money / Personal Finance/  How should I invest to get 50 lakh for my child’s education?

How should I invest to get ₹50 lakh for my child’s education?

You should review the progress of your direct equity investments and see if you have sufficient time to manage them


I am 37 years old and will require around 50 lakh for my daughter’s education after 10 years. My monthly salary is 70,000. I am investing in mutual funds via systematic investment plans (SIPs). These include SBI Bluechip Fund ( 3,000 per month, and increasing it by 1,000 every year), 3,000 each in Parag Parikh Flexi Cap Fund, Kotak Equity Opportunities Fund, SBI Small Cap Fund and Axis Mid Cap Fund per month. I am also investing 3,000 per month in PPF. I have fixed deposits worth 3 lakh. I can increase my SIP amount every year by 10% in all the schemes. Apart from this, I invest 15,000 every month in stocks too. Please suggest if I should make any changes to my portfolio.

—Name withheld on request


Your approach of investing nearly 50% of your monthly income for long-term goals is very good. One needs a lot of discipline to follow this approach . 

At present, you are investing around 30,000 every month in equity through direct stocks and equity MFs along with 3,000 in PPF.  These investments without any annual increase would be able to achieve your daughter’s education goal. If we assume a 10% per annum return on equity and 7.5% p.a. on PPF, then the corpus could be approximately 65 lakh after 10 years. I would suggest, along with your daughter’s education, you  also consider working on goals like retirement and wealth creation as you intend to increase the investment by 10% per annum. Keep the FD amount as the contingency fund if required.

 All the MFs you are investing in are good and you can continue with these in our view. You should review the progress of your direct equity investments and see if you have sufficient time to manage them since you are investing 15,000 per month, a reasonable proportion of your investment. You can always invest more through MFs if you get less time to regularly monitor the stock market.

Harshad Chetanwala is co-founder at

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Published: 05 Oct 2022, 11:21 PM IST
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