Piyush Prajapati
4 Oct, 2023
SIP Investments: Bridging the Gap to Your Child's Educational Dream
Can SIP Investments ensure access to the best education without falling prey to the rising tide of education inflation?
In India, the cost of education, especially higher education, has been rising steadily over the years, often
outpacing inflation itself. This presents a significant challenge for parents and students alike.
Education Inflation has been nearly 11% in India over the past 20 years. See how Inflation is going to affect the fees of some prominent higher education degrees over the Next 10 years:
Comparing the Mutual Fund (MFs) Returns with higher education Inflation and Recurring Deposit Rates over the last 10 years –
*we have considered the past returns (average) of best performing mutual funds as the rate of returns. Mutual Fund returns may or may not be sustained in future.
The above graph shows that Mutual Funds are not only better investments than Recurring Deposits but also they earn more returns to tackle the inflation in the education sector. Keep in mind that these returns have been achieved over the long-term period. Staying invested for long-term not only decreases risk but also increases the chances of positive returns.
In India, where quality education is a prized possession, education inflation can pose a significant hurdle. However, with the strategic use of SIP investments, you can tackle this challenge head-on.
Start early, stay committed, and watch your SIP investments grow, ensuring that your loved ones receive the education they deserve, without financial stress or burden. In the journey to secure their educational future, SIP investments are your trusted ally.
Disclaimer: Investing in mutual funds carries market risks; please carefully review all scheme-related documents.