How much will you need for an education goal?
Use this calculator to find the future value of desired education and monthly SIP needed to achieve this goal.
You Need to Plan for
Monthly Investment Required
Higher education from a prestigious institute is necessary to survive in this competitive world and to find the proper footing for your career. That is why everyone pursues one or the other form of professional course so that they can have a bright future. The cost of education, on the other hand, is another matter altogether. Today, higher education costs are so high that they burn a hole in your pockets. Add to it the rising inflationary trend and if you are thinking of pursuing higher education some years later, the costs would become more prohibitive. In the face of such high education costs, you need a dedicated education fund. This fund cannot be built overnight. You have to plan for the fund in advance. Do you know how?
To create an education fund, you need to save and invest regularly. However, to start investments, you first need to calculate the fund that would be required and the investment which would create such a fund. To calculate the optimal education fund, you need certain inputs. You need to know the current cost of education, the inflation rate and the tenure after which the fund would be required. This would help you arrive at the expected cost of education at the time when you would be applying for the course. You should also factor in any existing investments that you have and the rate of return on such investments. These investments contribute to the total corpus and help in calculating the additional investments required. Lastly, you need to take into consideration the expected return which you would be earning on fresh investments so as to calculate the investment amount which would give you the desired corpus.
When to start planning for education fund?
You should start planning for your education fund as soon as possible. The earlier you start the higher would be the interest that you earn. This would help in reducing your investments while at the same time building the desired education fund. So, start as early as possible so that you have a considerable investment horizon
Where to invest?
Investment should be done in such avenues which give good returns, are tax efficient and also suit your investment horizon. Mutual funds are such investment avenues which fulfil all these criteria. Moreover, they come in different variants suiting every investor’s risk appetite. So, choose good mutual fund schemes for your investments so that you can get good returns and build up a substantial education fund.
The calculation of your education fund should be correct so that the funds are not insufficient when you need them. If you cannot calculate the sufficient fund and the required investments yourself, use Orowealth’s Education Calculator. This calculator is a simple tool which calculates the requirement of your education fund in an instant. You can also get the assistance of Orowealth’s expert advisors to plan your investments in achieving your desired education fund.
Education should not be taken lightly and if you want the best education, plan for it. Besides your academic merit you would also need the required funds to get admission in good institutions. So, calculate the required fund and invest towards it in a systematic manner and you would be able to get a good education without worrying about finances.