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Today Date : Sunday, April 21, 2024

Building corpus for child  education through finance portfolio

Building corpus for child education through finance portfolio

When aiming to achieve a goal such as securing a child's education needs, one must assess how much to contribute to each investment and see what works best for you, just as one would for your general personal finance portfolio. 

According to Vivek Jain, Head – Investments, Policybazaar.com, given the varied career interests that kids have these days, it is difficult to predict how much money you will need to fund your child's education. However, with disciplined savings over a certain period of time, any one particularly NRIs can generate a large corpus for your child’s education. 

" The most accurate method is to look at current costs and compare them to an inflation calculator. 
Assume your child is two years old now and you anticipate that he or she will begin higher education at the age of 23. With an average cost of Rs 15,00,000 for a Master's Degree, you will need a corpus of Rs 62,10,844 by the time your child starts thinking about colleges, assuming a 7% inflation rate. 

Calculate your goal accordingly, and if you have more than one child, multiply by both. Make sure your investments project a sufficient surplus to cover your child's education and other future needs,” says Vivek.