How to build Rs 50 lakh corpus for your child

The corpus you build will depend on when you start investing, how much you invest in equity and debt, and the instruments you choose. ET Wealth calculates the monthly investment required if you want a corpus of Rs 50 lakh for your child’s education when he is 18 years old.If you start investing at child’s birthMonthly investment for 18 yearsRs 6,550: If you invest only in equityRs 8,300: If you invest in a mix of equity & debtRs 10,400: If you invest only in debtIdeal portfolioEquity: 90%Debt: 10%InstrumentsEquity:Equity Large- and Mid-cap fund or Equity Multi-cap fundDebt:PPF or Sukanya Samriddhi Yojana (for girls only)When the child is 3 years oldMonthly investment for 15 yearsRs 10,000: If you invest only in equityRs 12,000: If you invest in a mix of equity & debtRs 14,400: If you invest only in debtIdeal portfolioEquity: 80%Debt: 20%InstrumentsEquity: Equity Aggressive Hybrid fund, UlipDebt: PPFWhen the child is 6 years oldMonthly investment for 12 yearsRs 15,600: If you invest only in equityRs 18,000: If you invest in a mix of equity & debtRs 20,700: If you invest only in debtIdeal portfolioEquity: 70%Debt: 30%InstrumentsEquity: Equity Aggressive Hybrid fund, ELSS fund, UlipDebt: Sovereign Gold BondWhen the child is 9 years oldMonthly investment for 9 yearsRs 25,700: If you invest only in equityRs 28,500: If you invest in a mix of equity & debtRs 31,600: If you invest only in debtIdeal portfolioEquity: 50%Debt: 50%InstrumentsEquity: Equity Balanced Hybrid fund, ELSS fundDebt: Sovereign Gold BondWhen the child is 12 years oldMonthly investment for 6 yearsRs 47,400: If you invest only in equityRs 50,600: If you invest in a mix of equity & debtRs 54,000: If you invest only in debtIdeal portfolioEquity 30%Debt 70%InstrumentsEquity: As part of Hybrid Conservative Debt fundDebt: Hybrid Conservative Debt fund, Fixed DepositWhen the child is 15 years oldMonthly investment for 3 yearsRs 1.15 lakh: If you invest only in equityRs 1.19 lakh: If you invest in a mix of equity & debtRs 1.23 lakh: If you invest only in debtIdeal portfolioEquity 10%Debt 90%InstrumentsEquity: As part of Hybrid Conservative Debt fundDebt: Fixed Deposit, Recurring Deposit or Short-term Debt fundReturns assumed to be 12% for equity; 10% for mix of equity & debt; 8% for debt. For mutual fund categories, refer to Value Research.

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