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How much SIP do you need for your child’s education?

By the My Shubh Nivesh team · 5 min read · 20 October 2026

Most parents know roughly what a good degree costs today. Far fewer know what it will cost when their child actually needs it. That gap is where planning goes wrong, so let’s close it with three simple steps.

Step 1: Start with today’s cost

Pick the course your child might take, such as engineering, medicine, an MBA or study abroad, and note what it costs today for the full course: fees, hostel, books and travel. Ask a college or look up a recent fee notice. A rough figure is fine. You will refine it as your child grows.

In our example, a family in Hisar estimates ₹25 lakh in today’s money for a four-year professional degree.

Step 2: Add education inflation

Education costs in India have tended to rise faster than general prices. Many planners use 8 to 10% a year for education. We use 8% in the example. If your child is 6 years old and will start college at 18, you have 12 years.

At 8% a year for 12 years, ₹25 lakh today becomes about ₹63.0 lakh. That is the number to plan for, not ₹25 lakh.

Step 3: Work out the monthly SIP

Now ask what monthly SIP could grow to ₹63.0 lakh in 12 years. That depends on the return you assume. Equity-oriented mutual funds have historically been used for long goals like this, but returns are not guaranteed and can be negative in some years.

If we assume 12% a year, the SIP needed is about ₹19,536 a month. You would invest about ₹28.1 lakh in total, and the rest would come from growth.

Illustrative, not guaranteed. Actual returns will vary and may be lower.

What if ₹19,536 feels too high?

• Start with what you can, and step up. Raising your SIP by 10% each year, in line with salary hikes, closes much of the gap.
• Use what you already have. Existing savings, PPF or a Sukanya Samriddhi account for a daughter all count towards the goal.
• Start earlier. Every year you wait shortens the runway, and the monthly amount climbs quickly.

As the goal gets closer

About three years before the fee is due, it is sensible to move money gradually from equity towards more stable options. That way a market fall in the final year does not derail the plan. We review this with every family as the date approaches.

Try it with your own numbers

Open the Goal planner, choose “Child’s education” and change the cost, years and return to match your family.

This article is general information for education, not a recommendation to buy or sell any product. Figures are illustrative and not guaranteed; they depend on the assumptions shown. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.