Can ₹14,000 monthly SIP build ₹1 crore for child's education? Expert breaks it down

As education costs in India continue to rise sharply, a key question for parents is how much they need to invest regularly to secure their child’s future. According to Dhirendra Kumar, founder and CEO of Value Research, a disciplined monthly SIP of ₹14,000 could potentially help build a ₹1 crore education corpus over the long term—provided investors start early and stay consistent.

Highlighting the scale of the challenge, Kumar noted that education inflation is significantly higher than general inflation. “Private education inflation is twice as much as normal inflation. It’s growing at 10–12% every year,” he said . He added that while a private engineering degree today may cost ₹15–30 lakh, overseas education could require upwards of ₹1.5 crore, making advance planning essential.

To address this, Kumar suggests a structured SIP approach. “Start with ₹14,000 per month… assuming a 12% return, that will take you there,” he explained , referring to building a ₹1 crore corpus over 18 years. Importantly, only about ₹30 lakh would come from actual contributions, while nearly ₹70 lakh would be generated through compounding, underscoring the role of long-term investing.

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However, Kumar emphasised that execution matters more than strategy. “Most of the rewards will come by your behaviour, not by the fund selection,” he said . He advised investors to remain invested through market cycles and avoid reacting to short-term volatility, which often leads to premature withdrawals or SIP discontinuation.

This approach aligns with broader trends in child education planning. Systematic Investment Plans (SIPs) are increasingly being used as a disciplined and tax-efficient way to build long-term education corpus, particularly through equity-oriented mutual funds over 7–10 years or more. For instance, investing ₹30,000 monthly could potentially grow to ₹65–70 lakh over a decade at 11–12% returns.

Several funds cater specifically to this goal, including SBI Magnum Children’s Benefit Fund, ICICI Prudential Child Care Fund, HDFC Children’s Fund, and Tata Young Citizens Fund. These typically combine equity and debt exposure, offering a balance between growth and risk management.

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Experts recommend starting as early as possible to maximise compounding, maintaining higher equity allocation for long-term goals, and gradually shifting to debt instruments 2–3 years before the requirement to protect the corpus. Increasing SIP contributions annually by 10–15% is also advised to keep pace with rising education inflation.

Kumar also cautioned against common behavioural mistakes. “Getting started now is the most important thing… and making sure that you don’t get distracted,” he said .

With education costs rising and timelines long, the answer to whether ₹14,000 per month is enough depends less on market timing and more on discipline, consistency, and the ability to stay invested for the full duration.