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Top 5 SIP Plans for Child’s Education in 2025

Rising education costs in India have made it essential for parents to plan early for their child’s future. According to recent studies, higher education expenses are increasing at nearly 10–12% per year, 

Parents planning for child's education
which means a course that costs ₹10 lakh today could cost more than ₹25 lakh in 15 years. This is why Systematic Investment Plans (SIPs) in mutual funds have become one of the most reliable and smart strategies for securing your child’s education. 


In this article, we will discuss the Top 5 SIP Plans for Child’s Education in 2025, why they are suitable, and how much you should ideally invest.

Why Choose SIP for Child’s Education?

  1. Disciplined Investing – Monthly investments develop a habit of saving and ensure you stay on track with your goals.

  2. Power of Compounding – Small investments grow exponentially when compounded over 10–15 years.

  3. Inflation-Beating Returns – Equity-oriented mutual funds have historically delivered higher returns compared to traditional savings like FDs or PPF.

  4. Flexibility – You can start with as little as ₹500 per month and increase contributions over time.

  5. Goal-Oriented Planning – Child education SIPs can be aligned with a specific timeline (say 10–15 years), ensuring funds are available when needed.

Top 5 SIP Plans for Child’s Education in 2025

Note: These are based on past performance, risk-adjusted returns, and consistency. Consult your financial advisor before investing.

1. SBI Bluechip Fund (Large Cap)

  • Category: Large Cap Fund

  • Why suitable: Provides stability by investing in India’s top 100 companies. Suitable for conservative parents who want steady growth.

  • Returns (10 Years): ~12–13% CAGR

  • Best for: Parents with a 10–12 year horizon who want lower risk compared to mid and small caps.

2. Mirae Asset Emerging Bluechip Fund (Large & Mid Cap)

  • Category: Large & Mid Cap

  • Why suitable: Balances stability of large caps with growth of mid caps, giving higher wealth creation potential.

  • Returns (10 Years): ~16–17% CAGR

  • Best for: Parents starting early (child below 5 years), with 15+ year horizon.

3. Axis Growth Opportunities Fund

  • Category: Large & Mid Cap Fund

  • Why suitable: Diversified across high-quality companies, suitable for medium-risk investors.

  • Returns (5 Years): ~14–15% CAGR

  • Best for: Parents with 8–12 years horizon looking for balance of safety and growth.

4. HDFC Flexi Cap Fund

  • Category: Flexi Cap Fund

  • Why suitable: Fund manager has flexibility to move between large, mid, and small caps depending on market conditions.

  • Returns (10 Years): ~15% CAGR

  • Best for: Parents with long-term (12–15 years) horizon and moderate risk appetite.

5. Kotak Small Cap Fund

  • Category: Small Cap Fund

  • Why suitable: High-risk, high-reward option that can deliver strong returns if invested for long term.

  • Returns (10 Years): ~18–20% CAGR

  • Best for: Parents starting very early (child age 0–3 years) and willing to take higher risk for higher rewards.

How Much Should You Invest?

Let’s assume your child is 5 years old, and you need ₹25 lakh in 13 years for higher education.

  • If your SIP earns 12% CAGR, you need to invest around ₹8,500 per month.

  • If your SIP earns 14% CAGR, you need to invest around ₹7,000 per month.

By starting early, you reduce the burden and allow compounding to do its magic. Use our Goal Planner Calculator for better understanding of investment required in different returns rate scenarios.

Pro Tips for Parents

✅ Start SIPs as early as possible (birth of child or school age).
✅ Review your SIP portfolio annually and switch underperforming funds.
✅ Increase SIP amount every year with rising income (Step-Up SIP).
✅ Choose growth option instead of dividend to maximize compounding.
✅ Diversify across 2–3 funds instead of putting all money in one scheme.

Final Thoughts

Education is the biggest gift you can give to your child. By starting a well-planned SIP in 2025, you can ensure your child’s dreams of studying in India or abroad are not compromised due to financial constraints.

👉 Want a personalized SIP plan for your child’s education?
📞 Contact us at +91 88892 89993 to get a free goal-based SIP consultation Or visit Invest Online  


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