SIP for Daughter’s Foreign Education: Women are holding key positions in institutions locally or globally. They are influencing the lives of millions and becoming an inspiration for next-generation girls. As a parent of a newborn daughter, you may also dream that she joins the ranks of top-notch woman achievers when she grows up. One of the prominent ways to help her realise those dreams is to provide her quality education.
She may get it in India or abroad or both.
But quality education is costly at most places.
Specially, if you want your daughter to get a degree from a reputed foreign institution, it may cost dearly.
One needs to plan for such expenses well in advance.
If you are a parent of a newborn daughter and think that you need Rs 1 crore inflation-adjusted amount to help her get foreign education when she turns 18, what may be your one-time, monthly SIP, or yearly investment to achieve that target, see our estimates to know-
Education inflation
In the Consumer Price Index numbers for May 2025, the Labour Bureau said that the year-on-year education inflation rate for the month of May, 2025, was 4.12 per cent.
The corresponding inflation rate for the month of April, 2025, was 4.13 per cent.
Since it was for education in India, we are assuming a 5 per cent education inflation for foreign educations. Let’s see how much a parent needs in 18 years if the current expense of foreign education is Rs 1 crore.
In the table, you can see that at a 5 per cent inflation rate, one needs an estimated Rs 2,40,66,192 in 18 years.
Or in other words, we can say that, at a 5 per cent education inflation, the estimated amount required will be Rs 2,40,66,192 to get the same education that costs Rs 1 crore today.
Calculations for story
We will show that if your rate of annualised return is 10 per cent, 12 per cent or 15 per cent, how much you may need to invest today, monthly, or yearly to achieve the target of an estimated Rs 2,40,66,192 education fund.
Lump sum investment required to achieve Rs 2.41 cr education fund goal
If the annualised investment return is 10 per cent, the estimated one-time investment to achieve this goal will be Rs 43,28,516.
At a 12 per cent annualised return, the estimated one-time investment to achieve this goal will be Rs 31,29,558.
If one gets a 15 per cent annualised return, the estimated one-time investment to achieve this goal will be Rs 19,44,672.
Yearly investment required to achieve Rs 2.41 cr education fund goal
If one gets a 10 per cent annualised return, the estimated yearly investment required will be Rs 4,79,797.
At 12 per cent annualised growth, the estimated yearly investment required will be Rs 3,85,431.
If the annualised investment return is 15 per cent, the estimated yearly investment required will be Rs 2,75,951.
Monthly investment required to achieve Rs 2.41 cr education fund goal
At a 10 per cent annualised return, the estimated monthly SIP investment to achieve the target will be Rs 41,753.
At 12 per cent annualised growth, the estimated monthly SIP investment to achieve the goal will be Rs 33,814.
If the investment return is 15 per cent annualised, the estimated monthly SIP investment to achieve the education corpus will be Rs 24,497.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)