Parents do not want his or her child to make sacrifices when it comes to education. With the fees of education for courses increasing day by day, the pressure on parents and children is also increasing. Making use of an education loan does no benefit us, but instead, it increases the burden on children after a particular period.
Therefore, parents must always make a wise decision on how to create more sources of income to fund their child’s education in the future. Creating more sources of income does not mean working more extra shifts or signing in for another job. It means making use of your idle money and making it double or triple after a particular period.
Education loan was never a solution. The solution is SIP mutual funds. Learn how to fund your child’s education through Mutual Funds SIPs:
Starting with your investment from an early stage is an important step. As you start early, you allow your idle money to grow and you can earn more returns. Such returns meet the required money limit you need when your child turns 18 or 21 years of age.
Understand and calculate the education corpus your child will need by taking into consideration the present and the future inflation rates. This calculation will inform you of the amount you need to invest periodically so that the required amount is met in the future.
After you have decided the plan according to your risk appetite, money availability, try to increase the SIP amount whenever you have excess funds.
Such plans help to deal with the fund houses directly, instead of involving an intermediary; this will help to save on commission of such intermediaries.
Regularly track your funds’ performance by comparing it with the benchmark. If it does well, keep going, otherwise switch to other plans.
To find more information about SIP Mutual Funds you may refer to https://www.moneycontrol.com/news/business/mutual-funds/how-to-fund-your-childs-education-through-mutual-fund-sips-2573507.html.