This is how you can save for your higher education

Assume you graduated from an engineering college in March 2019 and are about to begin working to gain experience in the corporate world.

You’re scheduled to start on July 1st, and in the meantime, you’ve been thinking about mapping out your career path and weighing your options.

Following your brainstorming, you narrow down your choices to two:

Option 1: After 10 years of service, get an executive MBA.

Option 2: After 5 years of service, pursue a daily MBA.

Executive MBA after 10 years

Let’s make a rough calculation of the cost of schooling. An executive MBA in the current year ranges from Rs 7 lakh to Rs 40 lakh.

ISB, one of the top B-schools, currently charges Rs 38 lakh, while some other well-known names in the top -15 colleges charge anywhere between Rs 7 and 10 lakh.

But that is what you want to do in 10 years. As a result, you must calculate the cost in 2029.

Regular MBA after 5 years

If you want to do a standard two-year MBA, the top five B-schools charge between Rs 15-20 lakhs and Rs 7-10 lakh, while the other top 15 B-schools charge between Rs 7-10 lakh. However, given what you plan to do in five years.

As a result, you must measure the cost in 2024.

How Can You Accumulate the Money?

There are a variety of investment choices in the market, but mutual funds are the most lucrative. When you equate mutual funds to other investment options such as public provident funds, bank deposits, gold, real estate, and so on, you’ll find that mutual funds have the best returns.

You must achieve a higher education goal. As a result, it is recommended that you use mutual funds to build wealth. You will not be able to make any last-minute arrangements as a result of this.

What Should Your Approach of Investment Be?

The first choice is five years forward, while the second option is 10 years ahead in the example above. The first choice can be thought of as a medium-term, while the second can be long term.

For the first alternative, you can go with a balanced solution that includes both equity and debt, or you can go with large caps, which are more stable due to their scale.

On the other side, if you have more than a decade to invest, go all-in on equity funds, which have the best long-term growth potential.

As a result, if you choose the second choice, you can invest entirely in equity funds.