SIP at 40 for Child Education in 15 Years – Is It Enough?

Turning 40 often means balancing multiple responsibilities, home loans, retirement planning, and children’s future expenses. Higher education costs are rising rapidly, especially for professional courses in India and abroad.  

Starting a Systematic Investment Plan (SIP) at 40 gives you a structured 15-year window to build a dedicated corpus before your child turns 18 or 20. Even with a shorter time horizon compared to someone starting at 30, disciplined monthly investing combined with compounding can create a substantial education fund. 

Example 1: Moderate SIP Approach 

Suppose a 40-year-old parent invests ₹15,000 per month for 15 years at an assumed average return of 12% per annum. Over 15 years, the total invested amount would be ₹27,00,000.  

At an estimated 12% annual return, the total corpus accumulated could grow to approximately ₹75–80 lakh, generating estimated returns of around ₹48–53 lakh over the invested capital.  

This amount could significantly support expenses such as engineering, medical, or international undergraduate education, depending on inflation and course costs. 

Example 2: Higher Contribution Strategy 

In another scenario, if the parent invests ₹25,000 per month for 15 years at the same assumed 12% annual return, the total invested amount would be ₹45,00,000.  

Over the 15-year period, the corpus could potentially grow to around ₹1.25–1.35 crore, with estimated returns of roughly ₹80–90 lakh.  

This higher contribution strategy provides a stronger cushion against education inflation and currency fluctuations in the case of overseas studies. 

Why Use a SIP Calculator? 

While these examples provide estimates, actual returns depend on market performance. A SIP calculator helps you adjust monthly investment amount, duration, and expected rate of return to estimate your target corpus accurately. It allows you to plan realistically, factor in education inflation, and revise contributions whenever income increases. 

Also Read: How to Increase SIP Investments After a Pay Raise? 

Conclusion 

Starting a SIP at 40 for child education is not too late, but it requires disciplined investing and realistic planning. With a 15-year horizon, a well-planned SIP can build a meaningful education corpus. Using a SIP calculator can help you stay goal-focused, track progress, and make informed financial decisions to secure your child’s future. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.