{"id":17010,"date":"2025-10-02T12:39:14","date_gmt":"2025-10-02T12:39:14","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/10\/02\/choose-rs-10000-sip-over-education-loan-ca-reveals-how-parents-can-save-lakhs-savings-and-investments-news\/"},"modified":"2025-10-02T12:39:14","modified_gmt":"2025-10-02T12:39:14","slug":"choose-rs-10000-sip-over-education-loan-ca-reveals-how-parents-can-save-lakhs-savings-and-investments-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/02\/choose-rs-10000-sip-over-education-loan-ca-reveals-how-parents-can-save-lakhs-savings-and-investments-news\/","title":{"rendered":"Choose Rs 10,000 SIP Over Education Loan: CA Reveals How Parents Can Save Lakhs | Savings and Investments News"},"content":{"rendered":"


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With planning from the outset, families can not only meet education expenses but also secure additional resources for their children\u2019s aspirations<\/h2>\n
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\"SIPs<\/p>\n

SIPs can grow even during withdrawal phase, reducing financial burden.<\/p>\n<\/figure>\n

For many middle-class families, funding a child\u2019s education can feel like an uphill battle, with parents often spending lakhs of rupees over the years. However, a simple yet disciplined investment strategy, if implemented early, could significantly reduce this financial burden, experts say.<\/p>\n

Chartered accountant Nitin Kaushik, in a post traction on X (formerly Twitter), suggested that a systematic investment plan (SIP) started at a child\u2019s birth can not only cover the entire cost of education but also leave additional funds for other needs. \u201c99% parents burn lakhs on school fees without a plan,” Kaushik wrote on his X handle (@Finance_Bareek), adding, \u201cWhat if a 10-year SIP could fund your child\u2019s education almost free\u2026 and still leave lakhs for their dreams?”<\/p>\n

Under Kaushik\u2019s proposed method, parents begin a monthly SIP of Rs 10,000 at the time of their child\u2019s birth, increasing the amount by 10% each year for 10 years before stopping contributions. From the child\u2019s 10th year onwards, Rs 25,000 can be withdrawn monthly to meet education expenses until the child turns 22. <\/p>\n

Assuming an average annual return of 12%, the initial investment of Rs 19.12 lakh over 10 years could grow to Rs 32.69 lakh, while total withdrawals of Rs 36 lakh over 12 years would still leave Rs 51 lakh in savings.<\/p>\n

The advantage of this approach, Kaushik explains, lies in its alignment with a family\u2019s income growth. \u201cStart with Rs 10,000 per month, and by Year 10 you\u2019re investing Rs 2.8 lakh annually, aligned with promotions and salary hikes,” he said.<\/p>\n

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The SIP Strategy\u2022Start a SIP of \u20b910,000\/month.\u2022Increase by 10% every year for 10 years.\u2022Stop new contributions after 10 years.\u2022Withdraw \u20b925,000\/month from age 10\u201322 to cover fees.\u2022Assumed CAGR: 12%\u2014 CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) October 1, 2025<\/a><\/p>\n<\/blockquote>\n<\/div>\n

Experts also highlight the benefit of this approach over traditional loans. Taking an education loan of Rs 36 lakh at 11% interest over 10 years would result in monthly payments of around Rs 50,000, doubling the outflow compared to the SIP method and adding an interest burden. In contrast, SIPs continue to grow even during the withdrawal phase.<\/p>\n

Kaushik advices investing in low-cost index funds, keeping a portion for emergencies, and reviewing the portfolio annually. He emphasises that consistent and disciplined investing over a decade can yield results that even overtime work cannot match.<\/p>\n

With planning from the outset, families can not only meet education expenses but also secure additional resources for their children\u2019s aspirations. In a country where savings are hard-earned, this method offers a practical and hopeful solution, he said.<\/p>\n

For parents willing to invest patiently and consistently, SIPs could transform the way middle-class families approach one of the most significant expenses of their lives.<\/p>\n

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First Published:<\/span><\/p>\n
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October 02, 2025, 17:37 IST<\/p>\n<\/div>\n<\/div>\n

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