Best mutual funds to invest for my son’s education

I want to invest in mutual funds through SIP for my son's higher education. I am a moderate risk-taker, with an investment horizon of 20 years. I am targeting a corpus of Rs 3 crore. Please tell which mutual funds should I select to start investing and how much? I want my portfolio to be balanced - from risk and return prospective.
--Masood Ahmed

Since you are investing for a long-term and ready to tame some risk, you may consider investing in equity mutual fund schemes to fund your child’s higher education. Since you have a moderate risk appetite, you may invest predominantly in multicap schemes. If you want to diversify your portfolio and reduce the overall risk in the portfolio, you may add a largecap scheme to it.

Assuming an annual return of 12 per cent, you need to invest a little over Rs 30,000 every month to create a corpus of Rs 3 core at the end of 20 years.


A word of caution, do not choose a round figure like Rs 3 crore as your target corpus. It is always better to work with real numbers to arrive at a realistic figure. Find out the current cost of the course and inflate it by a reasonable figure to arrive at a more realistic number.

Here are some useful links:
Best mutual funds to invest in 2018
Best multicap schemes to invest in 2018
Best largecap schemes to invest in 2018