What is Child Education Planning?
A goal-linked SIP portfolio designed to accumulate the corpus needed for higher education at 18+ years of age — typically a blend of equity, hybrid and debt funds with progressive de-risking.
Who needs it?
- Parents of children aged 0-12
- Newly married couples planning a family
- Parents considering overseas education
Why it matters
Inflation-protected corpus (8-10% education inflation)
Glide-path: equity-heavy early, debt-heavy near goal
Tax-efficient redemption strategy
Parallel term-cover recommendation for protection
Common myths, busted
Myth: Child plans from insurers are best.
Truth: Most insurance-linked child plans deliver 4-6%. A mutual-fund SIP delivers 10-12% historically — for the same goal.
Real claim examples
- ₹38 L education corpus built over 15 years for a single child via ₹8K monthly stepped-up SIP.