Welcome back to Navigate with Finnovate! This week, I received a WhatsApp message from Aditya and his wife Reena, who are proud new parents of a baby girl. Congratulations to them!
Aditya wants to secure his daughter's higher education, planning for ₹1 crore spread over four years for undergraduate studies and another ₹1 crore over two years for post-graduation. To achieve this, he would need a corpus of approximately ₹8 crore by the time his daughter turns 17, covering expenses between ages 17 and 21.
To accumulate this corpus, Aditya needs to start investing ₹10.7 lakh annually. Here’s the breakdown:
- ₹7.6 lakh in mutual fund SIPs
- ₹1.5 lakh in Sukanya Samriddhi Yojana
- ₹1.5 lakh in PPF
Over 15 years, by investing ₹1.5 lakh per year in Sukanya Samriddhi, Aditya will accumulate a corpus of ₹70 lakh. Similarly, investing ₹1.5 lakh per year in PPF for 18 years will yield about ₹55 lakh.
By investing ₹7.6 lakh annually in mutual funds with a 12% return over 18 to 20 years, Aditya will accumulate approximately ₹7.7 crore. This total corpus of ₹8.3 crore will fully fund his daughter's higher education plans.
If you want to plan your child’s future like Aditya, contact us to get started on securing their education today.
