Calculate how much you need to invest for your Kid’s Education

As a caring parent you would always want your child to get the very best. With growing standard of living, the Kid’s education expenses are consistently rising. I believe the average rate of education inflation (the rate at which education expenses are rising) is around 10% to 15% depending on the location.

In this post let us understand – How to calculate the future value of Kid’s Education Goal amount? How much should you save/invest for your kid’s College education?

Calculate the Future Value of Kid’s Education Goal Amount

For calculating the future cost of education expenses, you need below details:

  • Kid’s age
  • No of Years remaining to attend college
  • Current value (cost) of College Education. You may have to do little bit of research to find out the average cost of college education in your preferred location.
  • Education Inflation (We can safely assume this as minimum 10% 🙂 )

Let us do the calculation with an example.

Example – Mr Sundaram wants to plan for his kid’s higher education. Child’s age is 5 years and will attend college in 12 years from now. As per his research, he came to know that the current cost of Engineering Education in his city is around Rs 5,00,000. He wants to find out what is the Future cost of his goal?Future value of Kid's education goal amount

I have used MS-Excel’s FV function to calculate the future value of goal amount. (FV Function variables are Rate 10% from B4 cell, Duration 12 years from B3 cell and Current cost of education Rs 5 Lakh from B5 cell). Future value of Kid's education msexcel fv function Kid's education

So, at 10% inflation rate the college expenses of Rs 5 Lakh will become Rs 15.69 Lakh in 12 years. Mr Sundaram has to accumulate this amount for his Kid’s education.

(For  detailed explanation on “How to calculate Future Value?’ Click here )

How much do I need to invest for my Kid’s education?

Mr Sundaram now knows that he requires around Rs16 Lakhs in 12 years from now. He further wants to calculate how much he has to save every year to achieve the goal amount. He also wants to find out how much he should save if he opts for Fixed Deposits (or) Mutual Funds (or) Stocks?Future value of Kid's education msexcel PMT function

I have used MS-Excel’s PMT function to calculate the required Yearly Savings amount for Kid’s education. ( PMT function’s variables are D9-Rate-9%, B3-Term-12 years and B7 -Target Goal Amount-Rs 15.69 Lakh).msexcel PMT function

Scenario 1 (If Savings are invested in Fixed Deposits)

Mr Sundaram has to save Rs 77,913 per year for the next 12 years to achieve his goal amount of Rs 15.69 Lakh. The yearly savings amount is invested in Fixed Deposits which may give 9% returns. (You may refer the above “PMT function” image on how to calculate.)

Scenario 2 (If Savings are invested in Mutual Funds)

Mr Sundaram has to save Rs 73,382 per year for the next 12 years to achieve his goal amount of Rs 15.69 Lakh. The yearly savings amount is invested in Mutual Funds and he expects 10% returns from Mutual Funds.

Scenario 3 (If Savings are invested in Shares)

If Mr Sundaram decides to invest in Stocks then he has to save Rs 65,023 per year for the next 12 years to achieve his goal amount of Rs 15.69 Lakh. The stock investments may give him returns of 12%.

 Important Points to Ponder upon

  • You can consider the above  yearly savings amount (I have provided a calculator below. You can use it to know your goal amount) as the minimum contribution amount that you need to save/invest. As and when your income increases you can keep contributing more towards your yearly savings. Accordingly, you can re-calculate the required Target goal amount as explained above.
  • If you choose to invest in mutual funds (or) stocks then it is better to move your fund to Safe Investment avenues like Fixed deposits, atleast 2 or 3 years before the Target goal year. By doing this you may prevent the accumulated fund from eroding. (Read : ‘Best Equity Mutual funds‘)
  • Besides these savings, have a good life insurance coverage. Consider taking Term insurance plan (if  you do not have). It is better to avoid Child Education Insurance plans. I believe Balanced Mutual Funds with the combination of Term Insurance plan may prove to be a good decision. (You may like visiting my post onBest Balanced Mutual Funds.”)
  • Do not buy a financial product just because the scheme name has “Child plan” on it. Understand the features, benefits and risks associated with that investment option.
  • Regularly monitor and track your investments. Also, be informed regularly of the cost of education for various courses.
  • After reaching the goal year, based on the fee payment conditions (like one time payment or per year basis) you may still need to manage the fund carefully.

Download Calculator – Kids’ Education Goal amount . (In-fact you may use this calculator for any accumulation goals like vacation planning, Marriage expenses etc.,)

Liked the post? Please share it with your friends. What is the average  per year increase of cost of college education in your location? Kindly share your comments.

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(Image courtesy of photostock at

  • says:

    Investing in your child’s education is a crucial financial consideration. While it’s important to calculate the required investment, it’s equally essential to strike a balance between financial planning and realistic expectations. Assessing the potential costs and starting early allows for a smoother investment journey, ensuring your child’s educational aspirations are well-supported without compromising your overall financial stability. Finding this balance empowers you to make informed decisions, securing a brighter future for your child without undue financial strain.

  • bubai says:


    I have 14k sip for a 15 years goal as child educational expenses with 60:40
    All are in regular – plan and running ….

    Invesco India Contra – 2,025
    Motilal Oswal Multicap 35 -2,025
    Principal Multicap -2,025
    Tata Equity P/E Fund -2,025

    Aditya Birla Sun Life Corporate Bond -2,700
    Reliance Prime Debt Fund -2,700

    As per return they are good as a over all portfolio and as per category and index bench mark.

    What is your opinion for the above fund selection ?

    I plant to invest sip of 30K per month (as per retirement planning and 7% inflation) to the same funds but in Direct mode

    Is this a wise decision?

    • Sreekanth Reddy says:

      Dear bubai,
      Kindly check the portfolio overlap for the four Equity funds and revert to me with your analysis.

      1 & 4 are Value oriented schemes.
      2 & 3 are mutlicap funds.

      You may add an hybrid equity (balanced) and/or Mid-cap fund for our long-term Retirement goal. (1 Diversified equity fund + Balanced fund + Mid-cap fund).

      Related article :
      Mutual Fund Portfolio Overlap Comparison Tools

  • Yavika says:

    Hi… I was trying to calculate using PMT(how much to invest an year for the future value of my goal). It is showing result in ‘$’ how to change the calculation to indian rupees?

    If I choose a balanced and a large cap fund for my medium term goal(education), should i consider average rate of return of both of these funds, say 15% for large cap and 9 % for balanced and take their avg i.e. 12% as the rate of return for the PMT function?

    thanks and Regards

  • Anonymous says:

    I’m 37 yr old with 2 year old daughter. I’m planning to invest in her education,marriage, my retirement and term insurance.
    Presently I have two mortgage of total approx 80000.
    What mix of investments do you suggest?

  • shankha says:

    Hi Sreekanth,

    Very nice write up. I am 35 years old and my child age is 4 months. I Start to do a SIP for my child education – that is required during his college education after passing class 12.

    As you shown in the example with data , I can invest max 60-65 thousand yearly for his education purpose for the upcoming 15 years.

    What MF you suggest me to start the SIP ?

    By the way I have HDFC prudence MF for last 2 years with SIP 5000/ pm.

    Thank you,

  • Richa says:

    Hi Sreenath,

    I want to invest around 5 lacs in lumpsum mutual funds scheme for 15 yrs.Can you please suggest is this the right time to enter.Also please suggest some good funds

  • RAJ says:

    Dear Sreekanth,

    Thanks a lot for the guidance. Very precise and Excellent article. Made my calculations easy. Thanks a lot.


  • Jayanthi says:

    Hi Sreekanth,
    First off, thanks a ton for putting up such useful information in such a easily understandable way with illustrations, explanations and for your supportive and thoughtful responses to all reader queries. Keep it up !
    I want to invest 4K in suitable debt funds per month towards my goal of saving for my child’s education needs, 8 years away. I’m saving 6K in monthly SIPs in diversified equity funds towards the same goal.
    I want to know which are the debt funds which will be suitable for this purpose.

    • Sreekanth Reddy says:

      Dear Jayanthi,
      Thank you for your kind words!
      So, you would like to have 60:40 allocation between Equity & Debt funds??
      Kindly read below articles;
      Types of Debt Funds.
      Best Debt Mutual Funds.
      Best Monthly Income Plans of Mutual Funds.

      • Jayanthi says:

        Hi Sreekanth,
        Yes, 60:40 allocation is my plan, 2 years prior to when I’m likely to require the money, I want to move a proportionate chunk of my equity investments into Debt.
        I read up the information on Debt funds as you have suggested.
        I would like to not risk any loss of capital in the debt portion of my investment.So, as liquid funds are the least risky in the Debt category, would it be prudent to start an SIP in one of the best in class liquid funds ?
        Also, would it be wise to move my equity assets into this same liquid fund as my goal year approaches ?

        On a different note, I would like to understand what the various debt market instruments are – treasury bills, commercial paper, bankers’ acceptances, deposits, certificates of deposit, bills of exchange, what they mean and how do they work. I want to understand for myself how the risk-return values are calculated for each, based on the nature of the instrument.
        Can you please guide me on where I can get this information. Thanks a lot.

        • Sreekanth Reddy says:

          Dear Jayanthi,
          Your strategy of switching to Debt funds before one year of target year, is good.
          Liquid funds are safest out of the all debt fund types.
          Kindly search in Google, plenty of info is available on debt securities.

  • ARUN NAIR says:

    Dear Shreekant,
    I would like to have your esteemed comments on LIC’s following two plan for my new born son.


  • Laxman Jaiswal says:

    Hi Srikanth,
    I wanted to invest 5K per month. Can you please advice me on the investment areas which make me financially better.

    Laxman Jaiswal

  • Samir Khan says:

    Dear Sreekanth

    Thank you for putting down a lot of useful information regarding the personal finance.

    I am 29 years old married with 2 years old daughter and 1 year old son. I did not buy any term insurance plan since my family is not dependent entirely on me. I am investing 1 Lakh per year in Sukanya Samriddhi Scheme since 2015.

    Presently I am holding 2 mutual funds:

    1. SBI Blue Chip Fund (G) – SIP – 4000 /-
    2. L& T India Prudence Fund – Direct (G) – SIP – 2000 /-

    I am planning to invest 8000 rupees per month for the below funds:

    1. Mirae Asset Emerging Bluechip Fund (G) – 3000/-
    2. DSP – Black Rock MicroCap Fund (G) – 3000 /-
    3. Kotak Select Focus Fund (G) – 2000 /-

    Please advise if the above MF allocation is proper or do I need to modify it. My goal is towards my kids education, marriage and retirement planning. My investment horizon is at least 15 years. Also I would like to know if it is better to go for a Direct Mode rather than Regular Mode for the above Mutual Funds.


  • Raj says:

    Hello Mr. Reddy,
    Awesome work and enjoyed reading your articles.
    I am 33 year old married with 2 year old son and having term insurance 50 lakh and 3 lakh health insurance for family
    Currently I hold 5 mutual funds namely HDFC prudence, HDFC top 200, ICICI focused blue-chip, reliance small cap and reliance tax saver fund investing 2k each per month. Please advise is the MF allocation is proper or do I need to modify focusing my sons education and his marriage.
    Also currently I am living on rent and want to save some money for my house purchase and initial installment. And I can add another 10K in MF. Please advise and suggest where and which is the best way to invest and allocate money for future financial security.

  • Nooruddin Khan says:

    Dear Sreekanth:

    Hope you are doing fine today.

    I planning for retirement plan & child education plan. My age is 35 and would like retire at 60. I can invest around 20k p.m. Could you please advise what would be best option.

  • Neha says:

    Thanks for the detailed good article.

    I have shortlisted these 10 funds as my portfolio (for my daughter’s education and marriage -aged 9). Please review it and suggest if i should drop few of them or go with all of them for long term.

    Franklin smaller co.
    ICICI Prudential Balanced Advantage Fund
    Reliance Small Cap
    UTI Transportation and Logistics Fund
    Tata Balanced Fund
    ICICI Pru Value Discovery Fund-Reg(G)
    ICICI Pru Exports & Other Services Fund-Reg(G)
    Franklin India High growth co
    Idbi India Top 100
    HDFC Mid-Cap Opportunities Fund(G)
    ICICI Pru FMCG Fund-Reg(G)

    I try to add spare lumsum amount every 3 months (about 20K total). I distribute the total money in each of these (excluding the sector funds).

  • Prabhu V says:

    Good Work Sreekanth, just got to know about your posts from my friend and glad that I am reading through this. Thanks for all the useful information

  • Shanthi says:

    Hi Sreekanth,

    I have two kids aged 5 and 3 years. Kindly suggest best ways to invest for their education. I can invest up to 20000 per month. And what would be the best time frame to accumulate money for my kids education.

    I have SBI term insurance plan and health insurance provided by my company.


  • feroz says:

    i have 1 daughter age 3 and son age 1

    i dont have MF and SIP

    only term insurance total 1.20 cr in 3 different companys

    01.icici pru life icare protect 40 lakhs (2011)
    02.Exide life my term insurance 25 lakhs ( 2013 )
    03.Birla sun life 56 lakhs (2014)

    and Health insurance 5 lakhs and critical illness 20 lakhs

    my child future can’t saving amount in case anything happen my died my cover 1.20 cr my child and wife future expenses

    and addition income plan i try

    which plan child insurance ULIP or sip or SSY

    help me

  • Dr Vineetha says:

    Hi Sreekanth!

    I have very less idea about mutual funds and SIPS’s. I am a 30 year old and have twin daughters who are 1 year old.
    I have already invested 1.5 lakh per year for each in Sukanya Samriddhi Yojana.
    Can you suggest SIP’s or mutual funds or debt funds for 10 – 20,000 per month to help me accumulate good money and please suggest time duration.
    I have no particular goals.
    Also, I’m very particular that I don’t lose my primary investment money.
    My monthly earnings – 1 lakh per month (30% bracket).

    Any help will be sincerely appreciated.
    Thanks and regards!

  • Suresh says:

    Hi Sreekanth, I like your blog as it is easy and simple for layman. I have 2 questions.

    1) I have Rs 100000 surplus to invest (after exhausting PPF and four equity MFs) if I want to invest one time for 3 or 5 years which is the best investment option. Don’t want to invest in multiple MFs as it will complicate record keeping.

    2) If any of my MF schemes don’t do well, after redeeming where should I direct the money to create a surplus instead of putting in idle Savings or FDs.

    • Dear Suresh..Kindly share more details about 4 equity MFs.

      • Suresh says:

        I have the below
        1) Icici focussed bluchip Direct
        2) DSP Black rock Top 100
        3) ICICI Value Discovery
        4) HDFC balanced

        • Dear Suresh,
          Invested funds are good ones individually.
          But 1 & 2 are from the same fund category – Large cap. This may lead to portfolio overlap. You may consider to exit from one fund and add one Mid cap fund like UTI midcap / Franklin smaller co’s fund for long-term.
          Invest Rs 1 Lakh in HDFC balanced fund ( 3 to 5 year time-frame).

          Read my articles;
          Best Equity funds
          MF portfolio overlap analysis tools.

          • Tarun says:

            Isn’t it a better option to put 100000 in a debt fund and open a STP to another mid-cap equity fund? I believe this will get better returns over the period.

          • Dear Tarun ..Choice is yours. But kindly note that STP transactions are treated as Redemptions and Capital gain taxes (if any) are applicable.

          • Tarun says:

            Thanks for the response, this probably answers my today’s query as well. I am new to investment field and still in learning phase. Until today I was under impression that the best way to park lump-sum amount (around 7-8 lakhs) is STP only. But probably I need to start from scratch on this plan. Could you please advise what could be the best option to invest this amount? This lump-sum amount is available for long term and it is calculated after creating sufficient FD’s for next 2-3 years. Also ELSS SIP’s are in place as well.
            Thanks in advance !

          • Dear Tarun ..If investment horizon is long-term, you may invest the lump sum (Rs 1 Lakh) in an equity fund.
            Read: Best Equity funds.

          • Tarun says:

            Thanks again Sreekanth !

            Now if I want to invest remaining lump-sum amount for 1 and 2 years time frame (based on when I need that money). Is FD the best option to invest for short time frames of 1-2 years or less? Please advise.

          • Dear Tarun,
            Arbitrage funds can be one of the option (considering 1 year + horizon & safety of capital).
            Kindly read :
            Best Arbitrage Funds.
            Debt Funds Vs FDs.

  • Ganesh V M says:

    I have 4 SIPs
    1.Balanced- rs 1000/- 5 yrs
    2.Multi cap- rs 1000/- 5 yrs
    3.Elss Rs4000/- 12 yrs
    I want to add a Mid cap to the mix for SIP of Rs1000 for 5 yrs. Can u please advise I am looking at 2 options the more stable FT Smaller cos or the high risk &reward Mirae asset blue chip

  • Magesh Babu says:

    I openned the PPF Account with initial amount is Rs 10,000/ on 10-August-2015. And then i deposit Rs 40,000 on
    Please answer my below questions

    Question 1) Can i get any interest on Rs 10,000 for of month of September(30-Sep-2015) or Not?
    Question 2) Can i get any interest on whole Rs 50,000 for of month of October(31-Oct-2015) or Not?
    Question 3) This Year shall i deposit another 1,00,000 on 5-October 2015 or not? If Yes means how much interest can i get for the whole amount(Rs 1,50,000 ) on 31-October-2015 and on 31-March-2016 OR it’s only for Tax saving?
    Question 4) I would like to know what is the best date for next deposit (yearly or monthly basis)to get maximum returns & which one is good, monthly deposit or yearly deposit.?

    • MPT says:

      Q 1- YES
      Q2 – YES
      Q3 – Interest on Rs,1,50,000/- for the period w e f October to March will be paid
      Q4 – Best option is to deposit Rs, 1,50,000.- ( maximum limit ) on 5th April – so that you get the interest on the total amount for the complete year

      Note – (a) the interest is due on monthly deposit as on 5th of the month
      ( b) there is no interest for deposit after 5th of the month
      (c) the interest is paid only once a year – after March I . e the interest is compounded annually

  • Vamsi says:

    Hello Sreekanth,

    I am a Senior Technical Analyst working in Boston, US. I am interested in investing for my children’s education. The time horizon is 20 years and 23 years from now. I am looking for two corpus funds of 1.5 Cr and 1.8 Cr. I would love to invest through SIP. Please suggest me few mutual funds and a financial plan if you could to hit these targets.

    Appreciate your help!


  • KUMARESAN.J says:

    I’m from Chennai. I would like to invest to my daughters 7 yrs old and 3 yrs old. The policy should help for their education at their age of 17 yrs and to their marriage on their 25th yrs. My premium could be cumulative of 5 – 7 thousand per month for both. Pl suggest a best plan for me to start immediately. Thanks in advance!

  • Kshitij Uttarwar says:

    Hi Shrikanth,
    My father wants to invest Rs. 10000 for my 2 yrs old daughter on her name. This is the one time investment. Could you please suggest any best option without having any tax implications?


  • Sambar Singh says:

    Sir I have 3 year old daughter and I want to know various plan ranging from 1000₹ to 3000₹ per month. Please send me whole detail on my email :
    Thanking you

  • Dev says:

    Hi Shreekanth,

    I am 30 yr old married guy and having 3 Month old daughter. I earn 80k Per month and having below investment

    Term Insurance – HDFC Click2Protect Plus of 1 Cr (Taken Last month)
    LIC Whole Life Plan -(Taken in 2012) Premium around 24K/yr for 12 yrs to get 40Lac at Age 79.
    Health Insurance – ICICI PruLife Health Saver Plan for 5L per Year for Me, Wife and Baby.

    PF – Around 45000 per Annum + Equivalent Employer contribution (Since last 1 Yr)

    HL – around 4Lac pending. It will be cleared by June 2015.

    SIPs investment of total Rs. 8000/- per Month as below (All are planned for long term for around 20yr considering daughter’s education and marriege)
    On my name
    1) UTI midcap fund (G) Rs. 2000/- (From last 5 yrs)
    2) ICICI Tax Plan Regular (G) Rs. 2000/- (from last 2 Month)
    3) DSP Black Rock Tax saver fund Reg (G) Rs. 2000/- (from last 2 Month)
    On Wife name
    1) ICICI Pru value Discovery Reg (G) Rs. 1000/- (From last 4 yrs)
    2) HDFC Equity fund (G) Rs. 1000/- (From last 5 yrs)

    Please suggest on above investments and what kind of additional investment planning/modification should I do and where ?

  • siva says:

    Im 25years unmarried, i wish to deposit for my future. My monthly salary is 20k. Can you please guide me.

    Thanks in advance.

    • Dear Siva,
      Do you have health insurance cover?
      Do you maintain emergency fund (cash in hand) to meet any unforeseen expenses?
      Suggest you to read my article – Top 15 best Equity funds SIPs.

      • Sivabupathy says:

        Hi Sreekanth,

        I dont have any incurance plan and i dont have emergency fund too. I was confused to invest, where to invest, how much invest monthly, which plan to choose, etc.

        • Dear Siva,
          Suggest you to first take a health insurance plan for Sum assured of around Rs 3 to Rs 5 Lakh.
          Start a RD account and deposit for 6 months or so. Accumulate atleast 3 months of your monthly expenses in this RD account.
          Do you have any family member(s) who are financially dependent on you?

          • Sivabupathy says:

            Hi Sreekanth,

            Thanks for your reply.

            Can you please suggest me in which can invest for health insurance and RD, tell me best & safe for investing.

            Yes my parents & grand-parents are depends on me financially, also i have education loan too.

          • Dear Siva,
            Consider taking health insurance plan (mediclaim) from Star health or Apollo Munich.
            Are your parents senior citizens? Do they have health insurance? Kindly read my article – “Health insurance plans for parents or senior citizens“.
            You may open RD with your banker.

  • N Mohan Rao says:

    Thank you so much Sreekanth, a lot of useful information to the beginners in personal finance. Outstanding job in making others educated in personal finance.

    My son age is 8yrs. i would like to save Rs 2000 to 5000 pm for education purpose (after intermediate) please let me know best investment/saving sceame for good returns

    • Dear Mohan,
      Thank you for your appreciation.
      Before working on Investment planing aspect, kindly allow me to ask few questions..
      Do you have sufficient life insurance cover?
      You have 8 more years to accumulate a fund for your Kid’s education goal (Graduation). Consider investing in mutual funds. Do you have prior prior
      experience with mutual funds?


    I am Shivkumar Kurnawal (age 34 year) working in a BSNL, Public sector Undertaking as a Jr. Telecom Officer at Pune.
    My son omkar Kurnawal (age 4 years) now taking admission for L.K.G., My wife is homemaker. We are family of three.

    Sir, i want suggestion/guidance for investing money for the education of my son & want plan for retirement.

    Now he his of 4 year old. At his age of 17/18, i.e. after 13/14 year his higher education will start may be medical/engg/Management as pr his choice, so i want certain lump sum about minimum of 40 lakhs.

    My Salary & current investment details are as given below

    After deductions of home loan EMI take home pay is=30,000/-

    My home expenses=17,000/-

    Personal/Home Loan=12, 00,000/-
    of which Rs.2,00,000/- is paid, Monthly EMI of Rs.15,000/- deducted from my account.

    My PPF account- investing —-Rs.12000/Annum……..currently hold Rs. 50,000/-
    My Son, Omkars PPF account— Rs. 6000/annum………currently hold Rs. 6000/- opened in dec-14

    Towards Employees providant fund my salary deduction is
    7000/- which is 12 % of basic salary+DA

    My Current Investment detail are as follows:—

    1. HDFC Children Gifts – Investment Plan – Direct Plan – Growth ——–Rs.25000/- lumpsum invested in month of oct-2014


    HDFC Mid-Cap Opportunities Fund – Growth – Equity – Diversified—- Rs.1000—monthly
    2. Reliance Growth Fund – Direct Plan – Growth – Equity – Diversified—Rs.1000-monthly
    3. SBI Blue Chip Fund – Growth – Equity – Diversified—-Rs. 5000—–one time investment
    4. Reliance ELSS fund: ———Rs.500—monthly.


    SBI E-SHIELD POLICY FOR Rs. 30 lakhs for year of 30 year—– yearly premium is —Rs.7500.

    KINDLY SUGGEST suitable investment strategy to meet my goals.
    Pl. intimate me if any other details are required.

    Thanking You.


  • Venkatesh says:

    Dear Sreekanth

    I am 32 yr old; have one kid-age 3 yrs; Monthly income – 80k.. I am working as a consultant and have no PF option in my company.

    Please advice which is the best option for investing money considering kid education.
    I have seen ” Kids Edu calculater” it was helpful… But I can save only around 8 K per month due to current financial commitments.
    My plan is to invest in SIP mutual funds and Sukanya samridhi saving scheme.. Planning to invest for 15-20 Years long team (Only for Kid Education + Marriage)

    So far I don’t have any term policy .. Have only Medical Insuarance in Star health as follows
    1. For my family ( 3 members) – 5 Lacs cover
    2. Father – Age- 68 – Red carpet policy – 1 Lac
    3. Mother- Age-60- 1.5 Lacs

    Yesterday I have applied Term insurance in HDFC ( Click 2 protect plus) for 1.5 Crore and decided to take additional 50 Lacs term insurance in LIC ( Since my frieds advised to take term policy in 2 differenent insurance company and especially one in LIC .)- Pl share your views on this,

    For HDFC Term insurance ( 1.5 Crore) I have to pay 20,000 approx. & for LIC I got info that I have to pay 17.5 K for 50 Lacs cover???

    Am just considering below option at present, pl share your views if any changes to be done

    1. HDFC Balanced fund ( Growth)- Rs- 2000
    2. UTI mid cap – Rs- 1,000
    3. HDFC Tax saver fund ( or) Franklin India Tax shield – Rs-1,000
    4. ICICI Prudential value discovery Fund ( or) ICICI Prudential dynamic plan – Rs-1000
    5. Sukanya samridhi scheme – Rs- 3000 / per month ( Want to save some amount

    Please suggest what kind of additional investment plan should I do & also let me know if I need to make any changes in my saving plan

    Expecting your valuable feedback.


    • Dear Venkatesh,
      Actually, there is no need to take two policies from two different companies. But, if you are comfortable by doing so, no harm though. Do note that you need to provide accurate information in proposal forms. Do not hide any facts.

      Shortlisted funds are fine.

      Consider taking a Super top up health insurance plan. Kindly read my article “Top up & Super Top up Health Insurance plans“.

      • venkateshwaran says:

        Dear Srikanth,

        This is Venkat. from chennai.
        Hope you are doing fine..
        First, i would like to thank you for sharing valuable articles and advise on Finance planning. it is very easy to understand.
        I am also getting regular updates from Relakhs and useful for me to analyze and understand about my portfolio.

        My personal Details :-

        I am 33 yrs old. have one kid ( daughter) -Age-4 ; I am working as a consultant in a Pvt Ltd firm..
        Have Medical policy – 12 Lakhs in star health for family ( 5 Lacs Base+ 7 Lacs Top up)
        and Taken Term Insularance last year in HDFC click 2 protect for a value of 1.5 Crore.
        Bought an old Apartment two years back and housing loan EMI- Rs- 40,000

        My Financial plan:

        All my goals and requirement are long term. So I had to start investments for following needs

        1. Child Education – Target 15 Years
        2. Daughter Marrriage – 20 Years
        3. Retirement corpus – 25 Years

        Last year I have opened MF account in HDFC Netbanking and I am selecting funds myself and have been investing from last year april …. I made all my savings in Mutual funds through SIP- Growth option.

        With refer to your suggestion , Last year i have started my investment as follows..

        Kid Education:- ( Started 2015- April)

        ( I have chosen Balanced fund ( 25%) + Diversified Funds (60%) + Equity (15%) : Investment period : 15 Years )

        1. HDFC Balance fund- Rs-2000
        2. Franklin india Prima plus – Rs- 2000
        3. ICICI pru value Discovery – Rs- 2000
        4. UTI Equity Fund – Rs- 1000

        Total :7000 ( Expected amount after 15 Years – 25-30 Lacs ( Min)

        Kid Marriage :- I have purchased a land to meet this future need . Hopefully the value also increasing as i expected.

        Retirement :

        1. Axis Long term Equity Fund – Rs- 2000 ( This i opted to get benefit of saving taxes -Started 2015- April)

        As such i am allocating only Rs- 2000 every month for my ret. corpus.

        Considering my current expanses, i would need minimum Rs- 5 Crore as a retirement corpus.
        With the help of your retirement calculator, i could understand that i have to invest minimum Rs – 20,000 every month to meet the target.

        So,i have decided to invest Rs- 6000 in the following funds this year. & planning to increase every year Rs- 2,000 for next 10 years. ( i.e.,10th year end my monthly SIP amount will be Rs- 8000+20000 =28000 to create retirement corpus.

        Since the investment duration is more then 20 years, I have shortlisted Midcap + Equity funds in 60: 40 ratio.

        1. Mirre asset Emerging Blu chip-Rs- 2000
        2. UTI Mid cap – Rs-2000
        3. Birla sunlife front line (G) – Rs- 2000

        4 .TATA balanced fund ( thinking as an option)

        Hope i can meet the required corpus with this plan, if i get 10- 12% annual return.

        I would request you to review and advise me, if any changes/ corrections to be done in my plan.
        Based on your feedback, i will proceed further.

        Thank you,


        • Dear venkateshwaran,
          I am very glad to know that you are planning your personal finances based on our articles. Thank you!
          Your analysis, funds & plan looks fine.
          1 – Suggest you to buy a Personal Accident Insurance plan (if you do not have one).
          Kindly read: Best Personal Accident Insurance plans.
          2 – Retirement Goal : You may replace UTRI mid-cap with HDFC mid-cap opportunities fund / Franklin Smaller companies fund.
          Also read: MF portfolio overlap analysis tools.
          3 – Do maintain sufficient ’emergency fund’ in cash or near cash to meet any unforeseen expenses.
          4 – You may consider creating a WILL at the earliest. (Read : How to write a WILL?)

          • vrnkateshwaran says:

            Dear sreekant, thanks for your valuable feedback.. I’ll do as you advised.. thanks for your support as always……

  • M Baig says:

    Dear Srikanth,
    Both I & my husband are late investors(in early 40’s) and have 2 kids (12 & 5).Due financial obligations we were not able to invest at all apart from buying a house.We earn up to 80k.Pls help us so that we are able to make the most even though we are late investors.
    God bless.

    • Dear Mrs Baig,
      Did you buy any Life Insurance plan(s)? Do you have any health insurance cover?
      (will surely guide you..)

      • MBaig says:

        Dear Srikanth,
        I went through your write up on Life Insurance Policies.I was thinking I’ll close on HDFCs Click to Protect.
        I have been working as a consultant for the last 10 years.Joined on the payrolls a month back.Have opted for VFP(15%).I’m confused as to where we can invest.Will send my CTC and breakup of I cud get ur email ID(if that’s ok with u)

  • Dev says:

    Hi Shreekanth,

    Thanks for writing good articles about investment planning, I read many of them found to be very useful for myself.

    I have a daughter of 2 month old. I want to invest on her name since today only, considering her education (at 17yr – tentative Degree in Engg or Medicine and marriege at age of 23-25 yr). Can you please guide me what step I need to take means policy to satisfy the needs.

    Currently I have below SIPs of total Rs. 7000/-
    1) UTI midcap fund (G) Rs. 1000/-
    2) ICICI Pru value Discovery Reg (G) Rs. 1000/-
    3) HDFC Equity fund (G) Rs. 1000/-
    4) ICICI Tax Plan Regular (G) Rs. 2000/-
    5) DSP Black Rock Tax saver fund Reg (G) Rs. 2000/-
    Also have below things
    LIC whole life plan Premium around Rs. 24000/- (sum assured 5 lacs)
    Mediclaim policy of ICICI PruLife Health Saver plan (Rs. 5 lac cover) for whole family with premium of Rs. 15000/-

    Also planning to have term plan HDFC Life’s Cilck2Protect Plus (suggested in your article) for 1 cr.

    Please suggest what kindly of additional investment plan should I do and where ?


    • Dear Dev,
      Thank you for your appreciation.

      Appreciate your efforts to plan for your family’s future.
      Kindly do not postpone the decision to buy a term plan. Buy it ASAP. When did you take LIC plan? (commencement date)
      All funds are good, except DSB tax fund. Consider Franklin Taxshield fund instead of it.
      Read my article on “Top up & Super Top up Health Insurance Plans“.

      • Dev says:

        Dear Shreekanth,

        LIC plan is taken in Mar 2012.

        Term plan – I am planning to buy HDFC click2protect plus – Life option for 1 Cr which i feel sufficient for me. While taking this plan do i need to inform about LIC whole life plan for sum assured of Rs. 5 lac ?

        Mediclaim – I have ICICI Pru Health saver plan for 5 lac per yr for me and dependants (wife and baby). I have taken this mediclaim policy in 2010 when i was unmarried and annual premium was Rs. 10000/-. After marriege i included wife and premium increased to Rs. 15000/-. Now I am in process of inculsion of baby name in this policy & might be premium will be increased by another 5000/-.
        Is this policy good one ? Do you suggest to quit this policy ? till date I have only claimed Rs. 5000/- for annual medical check up.
        Also I applied for inculsion of baby name in the policy but as per there clause baby name can be included only after 90 days of birth and I am not satisfied with this clause. Also any claim on baby can be claimed after policy anniversary year which is Mar 2016. Could you please guide how to tackle this issue ?

        • Dear Dev,
          LIC Policy – Consider surrendering it. Read my article “How to get rid off bad insurance?“. But take HDFC Click2protect plus policy and then surrender LIC policy. Yes, you need to inform hdfclife about this policy.

          Mediclaim – I believe it is advisable to take health insurance cover from a standalone health insurer (like Star / Apollo/MaxBupa). The cost structure of ICICI Pru health saver is relatively high.

          If your health plan terms & conditions are like that, we need to abide by them.

  • siva says:

    i have 5rs girl child,if i invest 2500 in SSA account what will be the wxpected amount in her 21 years please send me the calculation sheet

  • dilawar khan says:

    Hi there
    I working in public sector and contributing 10% of my basic salary for my retirement under NPS,i would like to know if that’s enough or need more savings for my post retirement life?

  • alam says:

    I have three girls under 5 years if I pay 500 monthly how much I gat after finish 18 years of child sir please send me calculation sheet. Waiting for your replay.

  • Deepak says:

    Thanks Sreekanth. Very useful message and hope everybody will get detailed presentation on their investments towards child education,Marriage Etc……. Our team often discuss about your blog –

    Already shared the details to many and will keep on doing…. Appreciate your efforts…..

  • Sukhvinder Kaur says:

    Thanks so much Mr. Reddy. A lot of useful info but presentd such that a layman like me can also understand and grasp.
    Keep up d good work.

    And yes, will definitely share it.

  • pradip Rananaware says:

    Thank you so much Reddy, a lot of useful information to regarding kid eduction calculator.

  • Muthu says:

    Nice 1 Sreekanth..!
    Could you pls share the similar kind of calculator for better retirement income. (assuming 25k or 50k retirement pension per month including inflation,etc..)

    so many products are in the market from different financial company /Banks and MF, etc. -sometime it confuses..

    • Dear Muthu,
      I will surely write an article on the importance of RETIREMENT PLANNING and will also come up with a simple retirement calculator to calculate the required retirement corpus.
      I did not get the second part of your question. Are you confused about where to invest for accumulating your retirement fund?

  • Radha says:

    Thank you so much Sreekanth, a lot of useful information to the beginners in personal finance. Outstanding job in making others educated in personal finance.

    • Dear Radha,
      Thank you so much. Keep visiting!

      • Prakash says:

        Dear Srikanth

        Please advice which is best option for invest in mutual funds considering kids future.
        My plan is to invest in SIP mutual funds with option of INR. 60,000 / year.
        Investment time will be from 5 to 10 years.

        Am just considering below option at present, if you have any better option please advice.

        1. HDFC Long term Fund. (Equity)
        2. HDFC top 200(G)
        3. HDFC Growth fund (Equity).

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