How fast education actually inflates
MoSPI's CPI-Education sub-index has run at 6–8% in most years post-2010. Private engineering and management programmes inflate faster — 8–10% is the planning band most independent advisors use. Study-abroad programmes add an exchange-rate dimension; INR has depreciated against USD at roughly 3-4% per year over the last decade.
Real numbers help anchor the plan: an IIM 2-year MBA cost ~₹6 L in 2005, ~₹25 L in 2020, and ~₹35 L in 2025. That's a 12-13% CAGR over 20 years. Private engineering ranges from ₹4–6 L total today at tier-2 colleges to ₹20–30 L at top private universities.
India vs abroad — vastly different plans
An Indian engineering or arts degree at a state/central university plans at ₹4–8 L in current cost. A premium private programme runs ₹15–30 L. An MBA from a top Indian institute runs ₹25–35 L. A US undergrad runs USD 200K–300K all-in (₹1.6–2.5 Cr today); UK is similar; Canada and Australia are 30-40% cheaper but still ₹70K+ USD equivalent annually.
Build the plan for the higher band of what your child might realistically pursue, and over-provision by 15-20% — exchange-rate moves and inflation surprises both work against you, not for you.
Asset allocation by years-to-college
12+ years away: 80–100% equity is reasonable; volatility has time to mean-revert. 6–11 years: 60-70% equity with the balance in hybrid/short-debt. 3–5 years: 30–40% equity, the rest in short-duration debt and arbitrage. Under 3 years: derisk to mostly liquid/short-debt — losing 30% of the fund to a market crash 18 months before admission is a financial and emotional disaster.
Plan a glide path with explicit calendar trigger dates rather than 'I'll switch when markets are high'. The behavioural research is clear: investors who pre-commit to a glide path beat investors who try to time it.
Tax wrappers for the child-education goal
There's no 'child education' tax wrapper in India equivalent to a US 529 plan. The Sukanya Samriddhi Yojana (SSY) is restricted to girl children, offers ~7-8% returns and is fully tax-exempt under 80C / EEE. For non-SSY scenarios, plain equity mutual funds and ELSS are the workhorses.
Holding the goal in a parent's name (rather than a minor's) is usually simpler for liquidity and rebalancing — minor accounts have operational friction at redemption.
What this calculator does not capture
It does not model exchange-rate volatility for abroad-degree planning, scholarship probability, or the cost of preparatory coaching (which can run ₹2–5 L for IIT-JEE / NEET / GMAT). For abroad planning, run the calculator at the higher inflation end (10%) and overshoot by 15%.
Request a callback for a goal-mapped plan that splits the corpus by year-of-need and accounts for the glide path.