I would like to start investment in mutual funds for funding my son's college education abroad. My son is 7 years old, and I am investing Rs 50,000 a year in a child plan from LIC for this goal. Please guide on achieving this goal 10 years from now.
Vivek Soota, Delhi
You will be able to build a meaningful corpus for your son if you define a sum that you wish to accumulate for him say ten years from now. Assuming you need Rs 20 lakh ten years from now, you need to start investing Rs 8,608 a month in SIP that earns an annualised 12 per cent returns. This is very much achievable if you start right away. You could invest in funds from the Outlook Money Stellar List which has funds like Aditya Birla Sun Life Frontline Equity and Franklin India Balanced and Kotak Select Focus fund among others to make a start.
