How to invest 20k in equity mutual funds for a child’s education and earn significant returns?
Education costs are rising rapidly in India. As a parent, starting early to save and invest for your child’s future education expenses is crucial. Here is a detailed guide on how you can invest Rs. 20,000 in equity mutual funds over the next 15-18 years to earn significant returns and meet your child’s education goals.
Identify your goal and time horizon
Most parents usually start saving for their child’s education from the time the child is born till the time they complete their graduation, which is typically around 18 years. So you need to have a minimum investment horizon of 15-18 years to accumulate a decent corpus. Considering you want to invest Rs. 20,000 now, your goal would be to generate returns of around Rs. 10-50 lakhs in 15-18 years factoring in inflation.
Choose the right mutual funds
Since you have a long investment horizon of 15-18 years, equity mutual …
