Best mutual funds to create ₹50 lakh for daughter's education in 15 years1 min read . Updated: 13 Nov 2020, 09:57 AM IST
I invest ₹3,000 monthly in Axis Midcap Fund through SIP. The most important goal for me is to save for my child's higher education.
I am a single mother of a girl child. My age is 28 years. I am working and earn ₹48,000 per month. I have recently started investing in mutual funds. I invest ₹3,000 monthly in Axis Midcap Fund through SIP. The most important goal for me is to save for my child's higher education. So, I plan to create around ₹50 lakh in the next 15 years. My girl is three years old. Which are the best mutual funds to earn the highest returns with minimum risk? Is Axis Midcap Fund a good scheme? Or, should I move to another fund?
--Name withheld on request
By Divam Sharma, Co-Founder, Green Portfolio, a Sebi registered PMS
To create a corpus for your child's education at an average compounding of 10% over the next 15 years, you would require investing around ₹12,000 per month.
However, mid cap funds carry high risk but considering your long investment horizon of 15 years and the credentials of the fund, you can continue with your existing investment of ₹3,000 per month in Axis Midcap Fund.
Considering that you might require liquidity for some emergency during the tenor, you should invest ₹3,000 per month in SBI Magnum Gilt Fund- growth which is a debt fund and a safe investment.
The remaining ₹6,000 per month should be equally invested in the following schemes:
Nippon India Index Fund-Sensex Plan- growth
Quantum Long Term Equity Value Fund- growth
We would also suggest you to take a term plan and a medical insurance plan to ensure that any exigency is taken care of.
You should also regularly assess your investments and can also take guidance from a SEBI Registered Research Analyst or Investment Advisor.
(Views as expressed by the investment expert.)