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How should I invest for my children's education?

Dhirendra Kumar tells about the deciding factor to choose a fund for your children's education


Where should I invest Rs 3,000 to Rs 5,000 every month for the education of my children?
- Rahul

It is entirely a function of how much time you have and of course it is a non-negotiable goal. With three children, you will be needing the money at different times. And I hope that you will need the money only at the time of their graduation or when they get into college after school. If these milestones are coming in next five years, for the first child maybe, then you have to deal with it very conservatively and you may start with a balanced fund. If the first milestone is 10 years away, then go for a multicap fund. One thing to note is that as you get closer to the milestone, that is, when your child is about to get into the college, estimate how much money you are likely need in the first year and take that amount methodically in the last year before you need the money. Don't wait for the last moment or the time till your child gets into the college. Don't be dependent on the market.

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