5 Reasons for Mutual Funds in Child Education Planning

Maximizing Investment Growth

Education costs are soaring due to inflation and currency depreciation. Discover why growth-oriented mutual funds outshine other investments, with potential returns of 10-15% annually, ensuring a higher fund value to meet future education goals.

Flexible Withdrawals

Mutual funds offer flexibility for withdrawals tailored to various educational needs. Unlike traditional options, they allow investors to withdraw as needed, avoiding the anxiety of a lump sum payout. With SWP, investors can even generate regular income for ongoing expenses, ensuring the remaining corpus continues to grow.

Tax Saving

Invest in mutual funds in your child's name for tax efficiency. Unlike other options, gains are taxed only upon redemption, typically during the child's higher education years, when they have lower or no income, reducing current tax liabilities.

Flexible Duration of Investment

Unlike traditional options, growth mutual funds offer flexibility without fixed maturity dates. Align your investment duration precisely with your child's education timeline, adjusting as needed without penalties.

Flexible Investing

Child education requires substantial funds, but earnings fluctuate. Traditional options limit flexibility, like Sukanya Samriddhi's capped investment or fixed deposits' lump sums. Mutual funds offer total flexibility with SIP, allowing investments from Rs. 500, with the option to add more whenever possible, easing accumulation.