MAM
How to plan SIPs for your child’s education?
Are you extremely worried about securing your child’s future education in the present day’s ever-increasing cost scenario? With prudent planning and investment in a proper financial vehicle, you can ensure that your child’s educational dreams are not compromised by financial constraints. Wondering which financial product can be a perfect choice in such a case? Systematic Investment Plans (SIPs) in mutual funds can be a reliable financial product to save for your child’s higher education. To learn how you can plan SIPs in mutual funds for your child’s higher education, continue reading.
1) Set clear education goals
The initial step in planning SIP in mutual funds for your child’s higher education is to set clear goals. Estimate the cost of education depending on the program and educational institute you aspire for your child. Consider parameters such as tuition fees, books, accommodation, and other expenditures. For instance, if you aim for a medical degree from a high-ranked foreign institute, research the present costs and factor in inflation. Setting a clear target will allow you to determine the amount you require to save through SIPs.
2) Decide the investment time frame
The duration you have, until your kid begins higher education, is essential in deciding your SIP approach. If your child is currently five years old and you plan for their higher studies at 18, you have an investment horizon of 13 years. Longer investment time frames allow you to take benefit of the compounding effect. Use an online SIP calculator to estimate how much you need to invest month on month to reach your goal. The calculator can provide a realistic picture of the necessary investments required, allowing you to stay on track.
3) Select the correct mutual funds
Choosing the correct mutual funds is crucial for maximising returns on SIPs. Equity funds are favourable for long-term goals such as education owing to their potential for higher returns. Diversify your investments through distinct equity funds to disseminate risk. Moreover, consider hybrid funds, which invest in both debt and equities, offering a balanced approach. Getting in touch with a certified financial professional can assist you in choosing the prudent mutual fund in alignment with your risk appetite and financial goals.
4) Monitor and adjust your investments
Periodically monitoring your SIP is essential to ensure they are on the right track to meet your financial goals. Assess your investment portfolio at least once a year and make required adjustments, if necessary. If certain funds are not performing well, consider switching to better-performing funds. Reevaluating your financial scenario and goals periodically helps in making well-informed decisions. Online tools like an SIP calculator can help in assessing your investment performance and making required adjustments.
Ending note
Planning SIPs for your child’s higher education requires clear goal setting, understanding your time frame, selecting the correct mutual funds, and periodic monitoring. By following these steps, you can prepare a solid financial plan to support your child’s educational goals. Use an online SIP calculator to make better decisions and stay on track. Additionally, ensure to start early, remain committed and watch your investments grow.
Brands
Muthoot FinCorp names Arun Kumar COO & Harjit Singh Takkar chief distribution officer
Leadership hires to boost operations and widen pan-India reach
THIRUVANANTHPURAM: Muthoot FinCorp has strengthened its top deck with the appointment of Arun Kumar B as chief operating officer and Harjit Singh Takkar as chief distribution officer, sharpening its focus on scale, speed and service as it pushes into its next phase of growth.
The flagship financial services arm of the 138-year-old Muthoot Pappachan Group, popularly known as Muthoot Blue, is expanding both muscle and mindset. With more than 3,750 branches nationwide and its digital platform, the Muthoot FinCorp ONE app, the company is betting on tighter execution and wider reach to stay ahead in an increasingly competitive lending market.
Arun Kumar B steps in with nearly two decades of experience cutting across financial services, technology transformation and customer analytics. He previously worked with CreditAccess Grameen, where he led enterprise-wide technology and data strategy initiatives and played a pivotal role during a major merger in the microfinance space. His work spanned integrating operations and products while scaling lending and non-credit offerings such as insurance and pensions.
At Muthoot FinCorp, Arun will steer operational excellence and strategic growth initiatives, aligning teams and processes to deliver sharper efficiency across the business. A gold medallist from Anna University and a postgraduate from IIM Indore, he also holds certifications in design thinking, Blue Ocean Strategy and business analytics.
Harjit Singh Takkar takes on the newly created role of chief distribution officer, reporting directly to the chief executive officer. The position is designed to energise the company’s distribution engine and bring greater governance and agility across its branch network.
Takkar brings over 28 years of retail banking experience, having held senior leadership roles at IndusInd Bank, Bandhan Bank, Yes Bank and ICICI Bank. Known for scaling branch networks and building high-performing teams, he combines distribution expertise with governance depth as a qualified company secretary with a master’s degree in finance and control.
In his new role, Takkar will oversee branch business and distribution channels, with a clear brief to expand reach, lift productivity and reinforce the company’s pan-India presence.
Commenting on the appointments, Muthoot FinCorp Ltd. chief executive officer Shaji Varghese, said the company continues to invest in leadership as it scales. “Our purpose is to improve the financial well-being of the common man. As we grow, strengthening leadership across key functions is important to ensure consistency in execution and customer experience,” he said.
With complementary strengths in operations and distribution now in place, Muthoot FinCorp appears set to move from steady expansion to sharper acceleration, backed by people, process and technology working in concert.
