The cost of education increases every year. Therefore, it is important to estimate the amount needed and keep in mind what the inflation rate will be and the time you have to plan for the future cost of your child’s education. The cost of education will generally depend on the course your child chooses. For example, the fee for conducting a two-year MBA course from a prestigious institution is approximately Rs 25 lakhs. If the inflation rate over the next 20 years is thought to be 10%, the cost of the same course will be approximately Rs 1.68 crore.

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Similarly, at present,, which will be Rs 67 lakh over the next two decades with a inflation rate of 10%. The actual level of education can rise. This provides a complete overview of the costs you will need to plan for your regular studies when your child is 18-20 years old. These costs can often increase if your child wants to study abroad. Now, you can estimate the amount required for their higher education by looking at the number of your children and the course they can choose. To understand this easily, suppose you need Rs 50 lakh for your child’s higher education.

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It was found that Rs 50 lakh would be required for a child’s higher education. In such a case, the first question that arises is how to raise 50 lakh rupees. The simple answer is that in this case you should always invest. Start collecting a certain amount every month from now on, you will be accumulating this amount by the time a child reaches the age of higher education.

How can you choose the right investment tool?

The monthly investment required to achieve the goal of education costs may vary. You can consider investing in equity-based resources as this provides a good return over time. If you want to take a lower risk, you can opt for a mixed investment by offering a higher value on equity instruments and under debt instruments. However, if you want to choose debt tools only to achieve the above financial purpose, your monthly investment value will be much higher.

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How much will the monthly investment be required?

If you choose a equity targeting tool, you will need to invest at least Rs 5,500 per month for 20 years, expecting a fixed return of 12 percent. With the second option, you may need to invest a minimum of Rs 7,000 a month to reach your goal. If you choose only credit equipment as a last resort, you will have to invest more than Rs 12,000 per month to achieve your goal.

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What other precautions should be taken?

While investing in your child’s higher education, review your investment regularly to keep track of your progress. To get the result you want, you can adjust it according to your current income and the return rate on your investment.