Case Study: Funding an IIT Dream
Funding a premier education at an institution like IIT is a dream for many Indian families. This case study showcases how, with the right strategy and guidance from a child education financial advisor, this dream can become a stress-free reality.
The Goal: An Ambitious Dream
Fifteen years ago, Mr. and Mrs. Kulkarni, a young couple from Nagpur, approached us. Their goal was clear: they wanted to ensure their 3-year-old son could pursue an engineering degree from a top institution like IIT without the burden of an education loan. At the time, they had a modest monthly surplus and no prior investment experience.
Our Strategy: Discipline and Patience
We designed a simple yet powerful strategy for them:
- Goal Calculation: We projected the future cost of an IIT degree, accounting for a conservative 8% education inflation rate. This gave us a clear target corpus.
- Starting Small: We started a Systematic Investment Plan (SIP) of just ₹5,000 per month in a diversified equity mutual fund.
- The Step-Up SIP: The most crucial part of the plan was to increase their monthly SIP amount by 10% every year, in line with their salary hikes. This small annual increase had a massive impact on the final corpus.
- Annual Review: Every year, we would sit down, review the portfolio's performance, and ensure the plan was on track to meet the goal.
The Result: A Dream Achieved
Last month, their son secured admission into an IIT. Thanks to their 15 years of disciplined investing, the Kulkarnis had built a corpus that comfortably covered all four years of tuition, accommodation, and other expenses. They achieved their dream without taking a single rupee of loan.
This success story from right here in Nagpur is a testament to the power of starting early and having a professional plan. Your child's dream is achievable, too.