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In an era of rising inflation, merely saving money is no longer enough. The cost of higher education, housing, and essential living expenses is increasing every year. For parents, securing their child’s future has become a top priority. Many believe that creating a large education fund requires a very high income, but the reality is quite different. With disciplined investing and the power of compounding, even a modest monthly amount can grow into a substantial corpus over time.

By investing just ₹7,000 per month through a Systematic Investment Plan (SIP), it is possible to build a fund of nearly ₹40 lakh over a long-term period. The key lies in starting early and staying invested.

Why Starting Early Makes a Big Difference

The year 2026 marks a fresh opportunity to begin a long-term investment journey. When you start investing early, your money gets more time to benefit from compounding. Initially, the growth may appear slow, but as years pass, returns begin to accelerate significantly.

A monthly SIP ensures that investments are made consistently, regardless of market conditions. This disciplined approach helps investors avoid emotional decisions and stay focused on long-term goals such as children’s higher education.

Expected Returns from a ₹7,000 SIP

Let us assume you begin a SIP of ₹7,000 per month in a well-managed mutual fund from January 2026. Over a period of 15 years, your total investment would be around ₹12.6 lakh. If the fund delivers an average annual return of 15 percent, the final value of your investment could grow to approximately ₹43 lakh.

Even in a more conservative scenario, where returns average around 12 percent annually, the total corpus may still reach close to ₹33 lakh. These figures highlight how small monthly investments can turn into a powerful financial cushion over time.

Why SIP Is Suitable for Common Investors

Compared to traditional options like fixed deposits, gold, or real estate, SIPs in mutual funds offer greater flexibility and growth potential. One major advantage is rupee cost averaging. When markets fall, investors buy more units, and when markets rise, fewer units are purchased. This balances the overall cost and reduces risk over the long run.

Another benefit of SIPs is financial discipline. The amount is automatically invested every month, making it easier to maintain consistency. Investors can also increase or decrease the SIP amount based on their income and financial situation.

Is 15 Percent Annual Return Realistic?

Mutual fund investments are market-linked and do not guarantee fixed returns. However, historical data shows that several large-cap and flexi-cap funds have delivered annualized returns of 15 to 18 percent over long periods. Financial experts often consider a 15 percent return achievable for long-term equity investments, provided investors remain patient and choose funds wisely.

Important Points to Keep in Mind

Patience is the most critical factor in wealth creation. Withdrawing money too early can reduce the benefits of compounding. Selecting the right mutual fund based on risk tolerance and investment horizon is equally important.

To counter rising inflation, investors may consider increasing their SIP amount by 5 to 10 percent every year. This strategy, known as a step-up SIP, can significantly boost the final corpus and help meet future education expenses more comfortably.

A small step taken today can secure your child’s tomorrow. A ₹7,000 SIP not only supports higher education planning but can also help you achieve other long-term financial goals.

Disclaimer: This article is for general informational purposes only. Mutual fund investments are subject to market risks. Readers are advised to consult a qualified financial advisor before making any investment decisions. The publisher is not responsible for any financial gain or loss.