Rs 10 crore for college? Radhika Gupta breaks down the numbers, inflation, and SIP strategy

Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has put a firm number on what she expects to pay for her son’s higher education: Rs 10 crore. And she’s laid out exactly how she plans to get there.

In a post on X, Gupta explained how the cost of a U.S. college education—currently Rs 2.5 crore—could rise to Rs 10 crore in 16 years, factoring in 5% annual inflation and 4% currency depreciation. Using compound interest, the formula she shared—2.5 × (1.09^16)—lands at Rs 9.9 crore.

“We underestimate the impact of inflation when we do our financial planning,” she wrote. “Not just for education but even for retirement. Always do the numbers and plan early.”

To meet that target, Gupta and her husband have committed to investing Rs 1.6 lakh monthly through SIPs. Over 18 years, this adds up to Rs 3.5 crore in total capital. “Where is the balance Rs 6.5 crore coming from? Time and compounding,” she wrote, urging others to run similar projections using a 12% return assumption in a basic spreadsheet.

In an interview with Mint, Gupta shared that her son already has his own portfolio, which gained 14% last year due to mid-cap and U.S. equity exposure. 

“We’ve given him a higher risk appetite as he has a much longer time horizon,” she said. His portfolio includes an international tech fund, small-cap and mid-cap funds, and a large & mid-cap index fund.

Gupta also disclosed that she and her husband aim to invest 85% of their post-tax income, tracking and comparing SIP targets annually. “We sort of compete and discuss who has the higher SIP number and who was able to achieve the targeted SIP number for that year,” she said.

While Gupta acknowledged that others may have different views on education costs or destinations, she emphasized the broader point: even an India-based undergrad and master’s degree today can cost up to Rs 1 crore. “This math matters for everyone,” she wrote.

Her takeaway is consistent: start early, account for inflation, and rely on time and compounding to meet long-term financial goals.