Here's how to fund your child’s education using mutual funds

If you are planning for a child’s future education, it is prudent to have a sizeable amount in the saving. Mutual funds can also be helpful for you in funding your child’s school or higher education costs.

Invest in the mutual fund portfolio that covers the expenses, and at the same time, it should not be a burden on your monthly budget, says India Infoline.

According to IIFL, you should take a few points in consideration for funding your child’s educational expenses. The points include; the stipulated amount for the child’s education, how many years are left for the said expense?, and what should be the expected amount of return?

The IIFL informs how to use mutual funds to secure your child’s future?

Have a head start

According to IIFL, it is better to start investing early, and mutual funds allow the diversification of having an extensive portfolio. As the mutual funds have the power of compounding, it can make a huge difference in the final sum of your investment.

Have a set goal before you start investing

When investing in mutual funds, the investor should have an end goal in mind, advises IIFL, while adding that "it is better to plan for the costs at a projected level by basing the calculations on the current costs", if you are planning for a long-term goal. Further, invest in the mutual fund portfolio that covers the expenses, and at the same time, it should not be a burden on your monthly budget, it adds.

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