Do you also want to create a strong education corpus for your child’s education? In today’s world, mere savings are not enough – it is very important to understand Education Inflation. The current education inflation in India is 11–12% and in some sectors it even reaches 15%. This is the reason why in 2010 the fee for MBA or Business School was only Rs 1 lakh per year, in 2024 it has increased to Rs 5 lakh and in the next 10 years this fee is expected to reach Rs 15 lakh. Similarly, there is a rapid increase in the fees of MBBS and Engineering also. Because seats are less and students are more, competition increases and expenses also increase. IITs and IIMs have also increased their fees by almost 300%. School education is also not untouched by this. The fees of private schools in metro cities, including those for age 3 to 17, today reach around Rs 30 lakh, and in the next 10 years it may increase to Rs 90 lakh. In such a situation, if you include the child’s school + college education, you will need a corpus of Rs 1.2 crore to Rs 2.5 crore. Therefore, start a SIP of Rs 30,000 today and create a fund of Rs 2 crore in 15 years with 15% expected returns.
