Your child’s future depends on what you do today
11 Aug 2022
YOUR CHILD’S FUTURE DEPENDS ON WHAT YOU DO TODAY
It is every parent’s dream to provide best in class education to their children to set them up for a successful career. And with the rising cost of education, this is no easy task. ‘For eg: As per reports, fees for MBA from IIM Ahmedabad have increased more than 5 times from below 5 lakhs in 2009 to now crossing more than 25 lakhs.
EDUCATION IS GETTING EXPENSIVE ACROSS THE BOARD…EVERY YEAR
| Months | Medical | Engineering | MBA |
|---|---|---|---|
| Cost Today (Rs) | 20 Lakhs | 10 Lakhs | 15 Lakhs |
| In 10 Years (Rs) | 32,57,789 | 16,28,895 | 24,43,342 |
| In 20 Years (Rs) | 53,06,595 | 26,53,298 | 39,79,947 |
(*Cost of Education, sourced from leading newspaper and websites, is indicative and could vary across institutes. Assuming 5% Inflation (CAGR) in cost of education.)
3 POINT MANTRA TO SECURE YOUR CHILD’S FUTURE
Begin early
An early start in the investing process gives you a better chance of achieving your goals.
Include equities
Any Long term investment plan must include equities for a better chance of achieving the goal. Equities have proven track records in long term wealth accumulation.
Be disciplined
Well-begun is half done, but remember the other half is still to be achieved. For this, parents ‘must ensure that they invest systematically every month, preferably via SIP’s’.
MUTUAL FUND SIPS CAN HELP MEET YOUR CHILD’S CAREER GOALS
| SIP Amount | 5 Years* | 10 Years* | 15 Years* | 20 years* |
|---|---|---|---|---|
| 5000 | 3,90,412 | 10,32,760 | 20,89,621 | 38,28,485 |
| 10,000 | 7,80,824 | 20,65,520 | 41,79,243 | 76,56,969 |
| 15,000 | 11,71,236 | 30,98,280 | 62,68,864 | 1,14,85,454 |
*value of investment in INR
Rate of Return assumed at 10% CAGR (compounded annual growth rate) for illustration only.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision
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The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
