Child's Education Planning Calculator - Plan your Child's Education

Providing the best facilities and quality education is a dream of any parents. It can be said the foremost priority of parents in India is to provide their children with the best that they have. However, with the growing inflation in education; planning has become a crucial part. But, there are numerous questions that hinder parents, such as how much to save for child education or what is the best child education plan in India?

In any of the cases, Budwisefunds has got your back. We will guide you through all aspects of child education here.

At Budwisefunds, we have created a special cost of education calculator. The calculator will ascertain the present value of investments for your child’s education. Let’s understand the calculator in detail.

What is child education planner calculator?

Child education planner helps you to ascertain the target value and know how much you need to save for your child’s future education. With the skyrocketing fees for education, planning is the only option left to meet the expenses. However, there is a thin line of difference between planning and efficient planning of your savings. Planning not done in the right way can lead you to numerous issues. At Budwisefunds, we help our clients to plan the child’s future efficiently.

Getting the right education for your children is imperative, and the expenses included are high and are only getting costlier. With the cost of education calculator, you will be able to figure out exactly how much to save for child education.

Steps to use child education planner

Using child education planner is an easy task which can be done in minutes but can help you to reach your child’s dream. Below are some steps that will guide you through the calculator.

Reaching to calculator: You can reach the child education calculator from Tools icon in the menu bar of the website.

Entering the credentials: The next step is to enter your child’s name and course that you would like to choose. This step helps in understanding your needs and ascertain the future value of the education that you intend to choose.

Bringing in the details: The last step would be entering the present value of the fees, expected rate of inflation, and time period of the course.

As soon as you perform your last step, the graphs will adjust accordingly, and you will reach your total target. You can start investing right away with us or take your time. In any of the cases, we understand you and are here to help you whenever needed.

How can Budwisefunds can help the investors in fulfilling their child education dream for best education?

There is no lack of best child education plan in India. However, what Budwisefunds offer is different from the rest of the companies. With the rising inflation, it can never be too early for you to start the investment to cover your child’s expenses.

We offer the best plan for your needs along with a personal financial advisor who looks after your investments. The right strategy and its formulation can prove beneficial for your child’s future. Hence, we ensure that the strategy is laid in the right direction and implemented successfully.

With the rising inflation, small chunks of monthly investment are what we advise our clients. This way our clients secure their child’s future for a better tomorrow. Planning becomes a crucial factor when your child opts for a post graduate or a foreign course. The investment that you will make will act as a cushion at such a crucial phase of your life. Since, this is a long-term plan small monthly investment are possible rather than putting all your savings in the education later.

How can inflation eat up your current corpus if your investments are not equity oriented?

In determining the outcome of your investment, age and inflation are the two factors that play a crucial role. The research says that long-term investment is beneficial as you can assume a lower rate of inflation as compared to short-term investment. Another crucial factor is the type of investment that you make for your investment goal. There are various options available in the market such as PPF, EPF, equity, mutual funds, and more.

Further, depending on your age there are various options that can be matched. For instance, if you are in your 30’s, it is advisable to invest in equity. Investments other than equity tend to eat up the corpus due to low interest rates and inflation having an impact.

Investing in equities is one of the best ways to get higher returns and stay ahead of inflation. Study shows that over the period of last ten years, NIFTY has shown an increase of 16.7% over the inflation of 7%. This happens due to the fluctuating market which adjusts the average and gives a higher rate of returns by beating the inflation.

Similarly, investing in debt market will impact the rate of interest and will eat up your corpus in the name of inflation. The risk factor in debt funds is lesser than equity. But, the investment rule says: “High Risk, Higher Returns”. Also, long-term investments minimize the risk factor and boost returns.

How much investment is required to do courses in India like MBA, Engineering and Medical?

The quality and fees of education in India has been at a continuous rise since last few years. The rise in fees has made it obligatory for the parents to save or invest. The MBA degree offers various specializations that open up the career for individuals and enhances the future.

Today, MBA/PGDM has become an entry level education criteria for most organizations. It provides a cutting edge to the resume and adds up to the qualification. There are more than thirty specializations in MBA and the fees for two years sums up between ten to twenty lakh rupees plus daily expenses and other costs.

Similarly, engineering is also one of the most sought degrees in India. The fees for four years sum up in between ten to forty lakh rupees depending on the college or university. Whereas, the medical field does not have anything below thirty-five lakh rupees excluding the daily expenses. You can now envisage the amount you need to save to give the best education to your child. The sky-rocketing prices offer a better future for your children which any parent won’t like to compromise on.

Which are the best education plans in India with reference to mutual funds?

There are various Systematic Investment Plans (SIP) with respect to education in India. For a parent to invest in such a plan does not require thousands of rupees. The SIP starts from five hundred rupees per month which is a nominal amount for any middle-class family. However, before investing, you must research by conducting child education plan comparison and select the best plan for your child.

There are various plans by companies to build a corpus over time. Let us study some of the options.

Aditya Birla Sun Life Equity : The sun life equity plan by Aditya Birla Group is amongst some of the best investment plans for the parents whose child is below 10 years. The plan manages the assets worth more than 10,000 crores and the fund has generated a five-year return of 18.71%.

Mirae Asset Emerging Bluechip Fund: The last three-year return of the emerging bluechip fund was recorded to be near 16.27% on an average each year. The portfolio of this plan consists of stock like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

Aditya Birla Sunlife Frontline Equity Fund: The returns for sunlife frontline equity fund plan were recorded to be 10.83% in the last three years and 14.71% on an average each year. The portfolio of this plan includes stock like ITC, Infosys, HDFC Bank, ICICI Bank, and more.

Reliance Large Cap Fund: The top holdings of Reliance large cap funds include companies like L&T, Infosys, ITC, and Bank of India. The recorded returns of last one year of this fund was 12.44% and five-year returns were 17.25%.

Canara Robecco Emerging Equities: The return on this fund since 2005 was recorded to be 17.05% each year. The stock companies of Robeco emerging equities are SBI Bank, HDFC Bank, Axis Bank, Reliance, and more.

The above listed funds are appropriate for child education as they can be beneficial for long-term and can give higher returns. For detailed list, check Budwisefunds goal based plans in invest now section.

FAQs

Q1. Is it important for me to invest in Mutual Funds for my child’s education?
A. Yes. The educational expenses are reaching the sky and in order to give a better education, the mutual fund is the best available option that offers the highest returns.

Q2. How much can I invest each month?
A. The investment in mutual funds starts from as low as 500 rupees and does not have any upper limit.

Q3. Can I cancel my investment plan in-between?
A. Yes. You can contact our team and we will help you to stop your existing plan.On an average , it takes around 30 working days to stop any SIP.

Q4. Can I invest in mutual funds directly?
A. Yes, you can. But it is always advisable to seek professional help as we have expert financial advisors who take care of your portfolios.

Q5. How much should I invest in equity?
A. The investor should examine various factors like age, financial position, risk taking capacity, and more to ascertain the amount.

Q6. Can I appoint a nominee in my investment plan?
A. Yes, the nomination can be made while you register your plan.

Q7. Is there any risk in mutual funds?
A. Mutual funds invest in equity and debt markets. Both of the market have their own advantages and disadvantages. However, the risk depends on the factors like chosen funds, the term of your fund, and the asset allocation of the plan.

If you still have any other questions/ queries in mind, do not hesitate in contacting us.