Does your child wish to pursue post-graduation in a foreign country? The average cost which would be incurred by a student pursuing a Master’s Degree in the US ranges between $30,000 and $1,20,000. This is not even taking into account food and living costs which can hover around $ 20,000 in all. Even if your child acquires a significant scholarship, you can estimate the amount which you would have to spend. These numbers might go up as one may want to send their children to Europe or UK rather than the US because of the prevailing political and social environment in the latter. One can only imagine the costs another decade from now.
But if the costs are so high why are people keen on securing a foreign education for their children? A foreign education offers the following benefits:
- a) Networking – The best companies and universities are located in the western world. They attract the crème de la crème of the world’s talent pool. The people one mingles within classrooms may go on to become political and business leaders in the future.
- b) International outlook – Studying and working abroad with others from different nationalities helps to develop a mature, empathetic and broad outlook.
- c) Access to a better quality of life – Apart from the developed infrastructure, the West also offers a better quality of life thanks to less pollution, incredible cleanliness, impressive socio-political environment, dependable public services and fulfilling recreation options.
- d) Higher earnings – Earning in dollars or pounds or Euros will offer a huge advantage as these are strong currencies and one can reap the benefits by looking to invest the same in countries such as India whose currencies are weaker than that of the west.
Now how does one plan to create a corpus for sponsoring a part or the entire expenses?
The appropriate way to go about this is to work backwards by creating a goal. In this case, the goal can be an amount which can cover the costs of higher education abroad taking into account the effect of inflation. Once that is done, top SIP plans can be shortlisted. The best SIP plans have given better returns in the past than most other financial instruments. Several experts have recognised Birla Sun Life – Sabse Important Plan (SIP) having the best mutual funds for SIP. Post that one can determine the amount for SIP investment plan which will be invested every month. You can also keep increasing the monthly investment amount by a fixed number every year. For example: If you are investing Rs 10,000 per month from Jan 2017 to December 2017 then from Jan 2018 onwards you can invest Rs 11,000 per month till December 2018 and again increase the amount from Jan 2019 onwards. Investing over a longer term will enable you to take advantage of the volatility of the stock markets and help build a substantial compilation of wealth.