Child's Investment Plan

Imagine this.

Your child, 18 years old, has just been accepted into one of the top universities in the world. You’re excited. It’s a dream come true. You picture them walking into the grand halls of their university, ready to take on the world.

Then you see the fee slip: ₹1 Crore for the full course.

Your stomach drops.

You check your savings, your investments. It’s not enough.

Your child looks at you expectantly. What do you say?

Do you tell them, “We can’t afford this”?

Or do you smile, knowing that you planned for this day 15 years ago?

Why This is Not Just Another Article—It’s a Reality Check

Most parents think they have time. “I’ll start investing next year,” they say.

Big mistake.

The cost of higher education is growing at 10-12% per year. What costs ₹20 lakh today will be ₹80 lakh in 15 years.

🔴 If you start investing when your child is 10, you need to save ₹1.5 Lakh per year.
🟢 If you start when your child is born, you only need to save ₹5,000 per month.

Time is the biggest weapon you have. And every year you delay, you lose thousands in potential returns.

So let’s get real. Let’s build a financial plan that guarantees your child’s dreams—no matter what happens.

How to Build the Perfect Investment Plan for Your Child

Most parents just dump money in a savings account or an FD and think they’re set. That’s the worst thing you can do.

Here’s what the smartest investors do instead:

Step 1: Decide How Much You Need

Shocking? Yes. Impossible? No.

You just need the right investment strategy.

Step 2: Use Mutual Funds to Build Wealth the Smart Way

📈 Over 15 years, equity mutual funds can generate 12-15% annual returns.

Example:

• If you invest ₹10,000 per month for 15 years in an equity mutual fund…

• You will have ₹60 Lakh at the end of the period (assuming a 12% return).

• If you wait just 5 years to start, you’ll have only ₹24 Lakh.

Delaying costs you ₹36 Lakh. That’s the price of waiting.

🔹 Recommended Portfolio for a Child’s Investment Plan

Step 3: Never Stop SIPs—Even During Market Crashes

Let’s say you start an SIP today. Everything is going well. Then, the market crashed by 30%. What do you do?

Most people panic and stop investing. That’s a terrible mistake.

Market dips are the best times to buy more at a lower price.

🔹 Example: SIP Power

🚀 Moral of the Story: Market corrections are temporary, but your child’s dreams are permanent. Never stop your SIPs.

Should You Invest in Gold for Your Child’s Future?

Many Indian parents believe gold is the best way to secure their child’s future. But is it? - Yes

• Gold is a good hedge against inflation, but it shouldn’t be your primary investment.

• Over the last 20 years, equity mutual funds have delivered 15% returns, while gold has given 10-12%.

🔹 How Much Gold Should You Hold?
Keep it 25-35% of your portfolio.

I intend to help 1000 young parents by March 2026 to start this journey of investing and building education funds. I would love your support in introducing me to any of the young parents you may know.

Warm regards,

CA Tejas Lakhani