How to create Rs 1 crore for my daughter’s education?

I am 34 years old. I have a four-month-old daughter. I want to build a corpus of Rs 1 crore in 10 years for her education and household expenses.

My investment for every month is:

• LIC: Rs 9,500 monthly (15,18,21 years plan)
• KSFE Chitty (Rs 10,000) every month. 11-month going on. 18 months pending.

Mutual funds (investing since the last year):

• Mirae Asset Emerging Bluechip Fund: Rs 3,500(SIP)
• Axis Focus 25: Rs 2,000 (SIP)
• Kotak ESG Opportunities Fund -Growth: Rs 1,000 (SIP)
• Canara Robecco Flexi Cap Fund: Rs 3,000(SIP)

Recently added:

• SBI Equity Hybrid Fund: Rs 3,000(SIP)
• Axis Multi Cap: Rs 2,500 (SIP)
• PPF: Rs 3,000 monthly from the next month.

I can invest Rs 5,000 more for my child's education. Is HDFC Children's Gift Fund good enough? Please suggest.

-Sidharth Menon

Assuming an annual return of 12%, you need to invest around Rs 43,000 every month to create Rs 1 crore in 10 years. As you can see, you are investing so little to build your large corpus. You can start with whatever you can at the moment and increase your investment every year. It will help you build a large corpus. You need to scale down your target corpus.

We normally recommend investing according to one’s risk profile. You have not shared your risk profile. So, it is not possible to recommend a scheme to you. If you are a conservative investor, you may invest in large cap mutual funds. If you have a moderate risk profile, you can invest in flexi cap funds.


Best large cap funds
Best flexi cap funds

You are investing in too many schemes. Investing a small amount in too many schemes will not offer you meaningful diversification. It makes monitoring the schemes difficult. So, it is better to have a focused portfolio. You should also adopt a goal-based strategy. Find out how much you need to invest every month to achieve each goal. It would help you to figure out whether you are on your way to achieve your goal.