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Certified Financial Planner® | Amazon |Ex-Grofers | Transforming financial goals into reality |

What can be an investment strategy for a 30-year-old who is saving for his/her children's higher education 15 years from now? The current value of a 4-year engineering course is 12 lakhs. The investor has a moderate risk appetite and can invest in a balanced strategy. However, the investor has no prior experience with investments. (This is not a recommendation and do consult with your advisor for guidance before replicating this strategy) Considering the current trend of education inflation at 10%, the current value of a 4-year engineering course will become approximately ₹50 lakhs after 15 years. Since the investor has a moderate risk appetite, a diversified portfolio with aggressive hybrid mutual funds, multi-asset mutual funds, and balanced advantage mutual funds can be considered. Assuming a 3-year average return of 11% for this diversified portfolio, the investor would need to invest approximately INR 4,500 per month in each of the above-mentioned categories. The investment should be continued for 13 years and then shifted to a debt mutual fund 2 years prior to the goal timeline to safeguard the total invested corpus. This goal planning requires an annual review and rebalancing in consultation with your respective financial planner. At Sampann, we believe everyone deserves peace of mind with financial planning. We don't just help you achieve your financial goals; we also empower you to make informed decisions. This way, you'll understand which financial products are suitable for you and which to avoid in the future. Contact our financial experts by clicking "Contact Us" on our website.

Saurabh Gupta

Simplifying personal finance management at Sampann

5mo

Naman Garg Is this strategy better than taking a education loan, which you can take for almost 100% of the amount required, and rate of interest is typically on the lower side. Additionally, it is supposed to be repaid only after the education is completed. In what cases is each strategy best suited?

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Robin Arya

Building GoalFi - Democratizing Research and Investment Advice, SEBI Registered

5mo

Good going Naman Garg

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