Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, recently shared a practical insight into how she is planning to save for her child’s education, which could cost around Rs 10 crore with proper planning.
In a post on the social media platform X, Gupta shared her calculations and highlighted an important lesson in financial planning— never underestimate the impact of inflation.
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“I’ve got a bunch of baffled messages about how education can cost Rs 10 crore,” Gupta wrote on social media. “The math is simple.”
She explained her calculation considering the following parameters:
According to Gupta, while doing the financial planning, one always underestimates inflation and this isn’t just about education but even while planning for retirement.
“We underestimate the impact of inflation when we do our financial planning,” she said. “Not just for education but even for retirement. Always do the numbers and plan early.”
The CEO also shared one more insight which was the SIP amount required for this goal to achieve will be Rs 1.6 lakh a month as a working couple.
She explained the total capital that we will put over a period of 18 years will be Rs 3.5 crore and the rest of the balance of Rs 6.5 crore will be coming from time and compounding.
“Make a spreadsheet with 12% assumed returns and watch the magic. Btw, for the math feels who say inflation should be factored into currency depreciation, I am using USD education inflation not India :),” Gupta posted on social media.
Gupta also acknowledged that every family will have their own values and perspectives when it comes to higher education. “Everyone can have their own view on where kids should study or whether education will be relevant at all,” she said. “An India undergrad + master’s, by the way, is also Rs 80 lakh to Rs 1 crore in today’s terms—maybe 30% of US costs. This math matters for everyone.”
Whether your child plans to study in India or abroad, the planning with realistic assumptions is crucial. Even if one doesn’t aim for international education, ignoring inflation and delaying planning can leave future goals underfunded, she lastly mentioned.
One should always know that starting early gives your investments more time to grow. Even small amounts invested at the right time can outperform larger amounts invested later. Compounding helps your money grow faster by generating returns on both your principal and earned interest. The longer you stay invested, the greater the benefit.
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Gupta, in her posts, mentioned that staying invested and patient pays off for ‘Dumber’ investors against the timing market.
She posted on social media platform X (formerly known as Twitter) that the smartest strategy is to stay invested and stay patient, as a large part of a year's returns come from a few critical days, and those are hard to predict.
“A large part of a year's returns come from a few critical days, and those are hard to predict. For us "dumber" investors, staying invested and staying patient is the easier and more effective thing to do!” said Gupta.
In a post on the social media platform X, Gupta shared her calculations and highlighted an important lesson in financial planning— never underestimate the impact of inflation.
Also Read | Over 260 debt mutual funds beat fixed deposits rate in 2 years. Should you switch?
“I’ve got a bunch of baffled messages about how education can cost Rs 10 crore,” Gupta wrote on social media. “The math is simple.”
She explained her calculation considering the following parameters:
- Current 4 US education: Rs 2.5 crore
- Inflation rate: 5%
- Currency depreciation: 4%
- Time horizon: 16 years
According to Gupta, while doing the financial planning, one always underestimates inflation and this isn’t just about education but even while planning for retirement.
“We underestimate the impact of inflation when we do our financial planning,” she said. “Not just for education but even for retirement. Always do the numbers and plan early.”
The CEO also shared one more insight which was the SIP amount required for this goal to achieve will be Rs 1.6 lakh a month as a working couple.
She explained the total capital that we will put over a period of 18 years will be Rs 3.5 crore and the rest of the balance of Rs 6.5 crore will be coming from time and compounding.
“Make a spreadsheet with 12% assumed returns and watch the magic. Btw, for the math feels who say inflation should be factored into currency depreciation, I am using USD education inflation not India :),” Gupta posted on social media.
One more insight:
— Radhika Gupta (@iRadhikaGupta) May 20, 2025
What's the amount we are SIPping for this goal? 1.6L a month as a working couple.
What's the total capital we will put over 18Y? 3.5 cr.
Where is the balance 6.5cr coming from? Time and compounding.
Make a spreadsheet with 12% assumed returns and watch… https://t.co/sNfMDcxXUa
Gupta also acknowledged that every family will have their own values and perspectives when it comes to higher education. “Everyone can have their own view on where kids should study or whether education will be relevant at all,” she said. “An India undergrad + master’s, by the way, is also Rs 80 lakh to Rs 1 crore in today’s terms—maybe 30% of US costs. This math matters for everyone.”
Whether your child plans to study in India or abroad, the planning with realistic assumptions is crucial. Even if one doesn’t aim for international education, ignoring inflation and delaying planning can leave future goals underfunded, she lastly mentioned.
One should always know that starting early gives your investments more time to grow. Even small amounts invested at the right time can outperform larger amounts invested later. Compounding helps your money grow faster by generating returns on both your principal and earned interest. The longer you stay invested, the greater the benefit.
Also Read | Franklin Templeton India Mutual Fund announces merger of its two international funds, to change name of surviving scheme
Gupta, in her posts, mentioned that staying invested and patient pays off for ‘Dumber’ investors against the timing market.
She posted on social media platform X (formerly known as Twitter) that the smartest strategy is to stay invested and stay patient, as a large part of a year's returns come from a few critical days, and those are hard to predict.
“A large part of a year's returns come from a few critical days, and those are hard to predict. For us "dumber" investors, staying invested and staying patient is the easier and more effective thing to do!” said Gupta.
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