Mutual Fund Corner: Will these investments help me to create a corpus for my child's education?

A: I assume SIP is Rs 20,000 per month for all schemes and not Rs 20,000 for each scheme, as then you will get much more than you analyse. Your age is 41 and for child education, you need Rs 25 lakh by 2028. Means that time your age will be 51. Investing Rs 20,000 for next 10 year at a minimum return of 10 percent annualised will give you Rs 40.97 lakh. Much more than you require. Going forward, if you keep investing till 2034, means your age 57. Total investment tenure for 16 years. Then, this investment amount goes to Rs 94 lakh. Again more than your requirement.

Moving ahead, if you continue for another three years, your age 60, and tenure of SIP investment 19 years. This amount goes to Rs 1.35 crore. So if you continue for disciplined investment in the mutual fund via SIP's, I am sure you will achieve your goal easily. The above calculation is with minimum average 10 percent annualised return. And I sure this return will be much higher.

If the Return on Investment increases to 12 percent, then the result would be:

Your NPS, at the age of 60, your retirement plan, assuming at the rate of 10 percent, will be Rs 3.38 crore.