As of 2022, the top institutions for higher education happen to be in the UK, the US, Australia and Canada. Moreover, the competition for jobs is getting crazier with every passing day, hence, it is understandable that parents nowadays want their children to avail of the best education possible.
There are two ways to save. One method is to obviously put aside some money from your daily income. Another way is to grow your wealth with mutual funds investment plans.
Mutual funds come with an average return percentage of 8-10%. Hence, they are certainly the best option available to you to grow your capital. Remember that you have to beat inflation as well. So, on that note, we leave you with 5 tips on how to save for higher education abroad.
We are using data from a Live Mint post on the same. You will require around Rs 1.5 crore and Rs. 1.6 crore for each year of the 4-year undergraduate program.
Obviously, the longer you keep putting it off, the worse for you. You need to start saving around 12 lakhs per year assuming you started when the child was 3 years old. This way you will reach the required corpus in time. Hence, start the investing process early and get ready to put your money in mutual funds investment plans.
Invest in a 90:10 ratios in equity and debt mutual funds. As equity usually performs better in the long run, you can stand to earn a lot of capital from it. However, to offset the high risk you need to invest some amount of your portfolio in debt. Moreover, you can surely shift equity into debt as the years go by.
Out of all the mutual funds investment plans, you can try to invest in index mutual funds. These try to mimic the market and beat it as well hence they are a good equity option. Moreover, you can also try to invest in Fixed Deposits given the present increase in returns.
In case you are not unable to make up the corpus, you need to go for an education loan. Also, you can ask your child to work simultaneously while studying so that they can pay back their education debt.
Hence, choose to go for mutual funds investment plans and learn all about them before you take the plunge of investment. If, however, you do not have the time to learn and study about mutual funds, you can get in touch with Money Assist. We are mutual fund agents who will help you to prepare your portfolio for your child’s education.