Where to invest for your child’s higher education

financialexpress.com:

The cost of higher education in India has witnessed a surge in recent years, encompassing tuition fees, hostel, books, and miscellaneous expenses. As parents seek to provide quality education to their children, it’s essential to assess the potential financial need and plan accordingly.

Meticulous financial planning is the key to transforming these dreams into reality. Here are the key tips to help you overcome financial challenges and create a way out to save enough to give your children the best education available by top institutions of India and abroad.

Embarking on the journey of saving for your child’s education necessitates a nuanced approach. Systematic Investment Plans (SIPs) emerge as stalwart allies, providing a disciplined and customisable investment avenue. For instance, consider investing in equity mutual funds through SIPs. Historically, they have demonstrated the potential for robust returns over the long term, aligning with the extended horizon typically associated with saving for higher education.

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For parents envisioning a brighter future for their daughters, the Sukanya Samriddhi Yojana (SSY) stands as an important investment option. This government-backed scheme fosters financial discipline and help you grow your investment as your child grows.

Adhil Shetty, CEO, Bankbazaar.com, says, “Opening an SSY account not only ensures a dedicated corpus for higher education but also provides tax benefits. The investment in SSY not only nurtures a girl child’s education but also empowers her financial independence.”

While diligent saving is crucial, it’s essential to be realistic about the potential shortfall. Education loans in India