SIP for Child's Education: How Much to Save Monthly

IIT costs ₹10 lakh today. IIM costs ₹25 lakh. In 15 years, these will be ₹24 lakh and ₹60 lakh. Here is your SIP plan.

1.Education cost inflation in India

Education costs inflate at **10-12% annually** in India — nearly double the general CPI inflation. Current costs (2026): IIT B.Tech ≈ ₹10 lakh (4 years). IIM MBA ≈ ₹25 lakh (2 years). Private engineering ≈ ₹8-15 lakh. MBBS private ≈ ₹50 lakh-1 crore. Abroad MS ≈ ₹30-60 lakh. At 10% education inflation, IIT in 15 years = **₹41.8 lakh**. IIM in 18 years = **₹1.39 crore**.

2.SIP plan for IIT/NIT (15-year horizon)

Target: ₹42 lakh in 15 years. SIP at 12% CAGR: **₹8,400/month** (flat). With 10% annual step-up starting ₹4,000/month: reaches ₹42 lakh comfortably. Fund choice: flexi-cap or large-mid cap — 15-year horizon is long enough for equity. Start this SIP when your child is born or in Class 1. The earlier you start, the lighter the monthly burden.

3.SIP plan for IIM/MBA (18-year horizon)

Target: ₹1.4 crore in 18 years. SIP at 12% CAGR: **₹18,900/month** (flat). With 10% step-up starting ₹7,000/month: reaches ₹1.4 crore. This is a significant monthly commitment. Strategy: combine with Sukanya Samriddhi (if daughter, ₹1.5 lakh/year at 8.2% tax-free) and PPF to reduce equity risk while building the corpus.

4.The glide path: shifting from equity to debt as the goal approaches

Start with 100% equity SIP. At 5 years before the goal, begin shifting 20% of accumulated corpus to debt per year. At goal date: 100% in debt/liquid. This "glide path" protects your corpus from a market crash right when you need the money. Example: ₹40 lakh corpus 5 years before IIT admission. Shift ₹8 lakh/year to debt. At admission: ₹40+ lakh safely in debt, immune to equity volatility.

5.Key takeaway

Start a dedicated SIP for each child's education the year they're born. Education inflation at 10-12% means costs double every 6-7 years. A ₹5,000-10,000/month step-up SIP started early can comfortably fund even an IIM education. Use our goal SIP calculator to find your exact monthly requirement.