Save ₹50.00 L for a child education fund by age 45

What the monthly target assumes

The calculation treats ₹9,910 as a flat monthly SIP paid for 180 months. At 12%, those payments grow to at least ₹50.00 L. You put in about ₹17.84 L; projected market growth accounts for roughly ₹32.17 L. Returns will not arrive in a straight line, and a lower return means a shortfall unless you raise the contribution.

How this goal changes the plan

For this child education fund, Education has a fixed spending date, so review the expected course cost each year and reduce equity exposure as admission approaches.

Check the target amount once a year. If the expected cost rises, update it first and let the monthly SIP follow. A salary increase can fund a step-up, but do not count that future increase in today's base plan unless you can maintain it.

Age matters because time does the heavy lifting

Starting at 30 gives this plan 15 years to compound before age 45. Cutting the horizon forces each monthly payment to carry more of the target. Extending it does the opposite. Use the time-period control above to compare the monthly amount at one year earlier and one year later before settling on a contribution.

Tax and return assumptions

The 12% return is an illustration, not a promised mutual-fund return. The target is shown before exit tax. Equity gains may attract long-term capital-gains tax when units are sold, so leave room above the target or model tax in the full SIP calculator. LTCG assumptions effective 2024-07-23; source: Income Tax Department.