Higher education is no longer just a dream—it’s a necessity. Whether your child wants to pursue engineering, medical, or go abroad, the cost of college is rising every year. That’s why early investment planning for a child’s education is no longer optional. You don’t just need to save—you need to invest smartly, consistently, & early.
Let’s decode how a disciplined SIP or one-time investment can help you build a ₹1 crore corpus in 15 years, keeping education inflation in mind.
Why Target ₹1 Crore?
A course that costs ₹20 lakh today may easily cost ₹35.20 lakh in 15 years if education inflation continues at 4.12%. But if you're aiming for premier institutions or foreign universities, you may need close to ₹1 crore.
To understand this, let’s break down the present value of ₹1 crore considering various inflation rates:
|
Education Inflation Rate |
Present Value of ₹1 Crore |
|
4.12% |
₹56.83 lakh |
|
6% |
₹44.23 lakh |
|
8% |
₹34.04 lakh |
If your child’s dream college will cost ₹1 crore in 15 years, then in today's terms, it could be anywhere between ₹34 lakh to ₹57 lakh, depending on inflation.
SIP for Child’s Education: 3 Ways to Reach ₹1 Crore in 15 Years
Assuming your investments give a 12% annual return, here’s what you’ll need to invest:
✅ Option 1: One-Time Investment
- 💰 Required Today: ₹18,26,963
- 📈 Future Value after 15 years: ₹1 crore
- 🟢 Capital Gains: ₹81.73 lakh
✅ Option 2: Yearly Investment"
- 💰 Annual SIP: ₹2,39,502
- 🔁 Total Investment in 15 Years: ₹35.92 lakh
- 🟢 Capital Gains: ₹64.07 lakh
✅ Option 3: Monthly Investment
- 💰 Monthly SIP: ₹21,011
- 🔁 Total Investment in 15 Years: ₹37.82 lakh
- 🟢 Capital Gains: ₹62.17 lakh
Also Read: How Rs 1 Lakh Can Become Rs 1 Crore: The Magic of Compounding if You Start Early
Investment Growth Comparison
|
Year |
One-Time Investment Growth |
Yearly SIP Growth |
Monthly SIP Growth |
|
1 |
₹20,46,198 |
₹2,68,242 |
₹2,68,242 |
|
5 |
₹32,19,732 |
₹17,04,103 |
₹17,04,103 |
|
10 |
₹56,74,269 |
₹47,07,315 |
₹47,07,315 |
|
15 |
₹1,00,00,000 |
₹1,00,00,000 |
₹1,00,00,000 |
No matter which route you choose, starting early & staying consistent are key.
The Role of Education in Inflation
Let’s not forget the invisible villain here: education inflation. As per the Consumer Price Index for May 2025, education inflation stood at 4.12%, but this can be significantly higher depending on the course or country.
That’s why just putting away a fixed amount every year in savings may not be enough. Your investments need to grow faster than inflation, which is where SIP for a child’s education shines."
Final Thoughts: Choose Your Strategy Wisely
- Want low-effort, high-return? Go for a one-time investment.
- Prefer discipline with tax benefits? Try a yearly SIP.
- Want to align it with monthly cash flow? Monthly SIP is perfect.
The earlier you start, the less you’ll have to invest. A simple monthly SIP of ₹21,011 started today can give your child the wings to fly 15 years later.
📌 Don’t wait for the “right time.” Start now, even if it’s small. Because with compounding, every rupee counts—& every year matters.
📲 Need help planning your child’s financial future? Talk to an expert now on CallMyCA.com.
