There are various ways one can save up for their child's educational expenses. Considering the rate of inflation, investing is an even better option than saving to accumulate a corpus as an educational fund. Mutual funds are one such investment instruments that can help you plan for your child’s education. Through mutual funds, you gain exposure to the equity market and simultaneously diversify the risks of investing in an individual stock.
There are two ways you can invest in a mutual fund: lumpsum and SIP (systematic investment plan). Provided the objective is educational purposes, SIP is the best way to go.
For instance, if you invest Rs. 15,000 every month for a period of 10 years, you accumulate a corpus of Rs. 34,85,086, assuming the rate of return is 12%
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