Indian parents care deeply about their children's futures. But there are a few comfortable stories we tell ourselves that quietly delay action. Let's look at them honestly.
"My FD will be enough."
FD rates: 6–7%. Inflation: 5–6%. After tax, your real return is close to zero.
₹1,000/month SIP for 18 years at 12% → ~₹7.5 lakh. Same in an FD at 6.5% → ~₹3.5 lakh.
The gap is not small. It's the difference between college with a loan and without one.
"They're too young. I'll start when they're older."
This is the most expensive myth. The single biggest variable in long-term investing is time — not amount, not fund selection. Time. Every year you delay is compounding you're giving away. There is no such thing as too young to start investing in a child's name.
"Mutual funds are risky."
Risk is time-dependent. With a 15-year horizon, short-term volatility is noise. The Nifty 50 has returned ~12–14% CAGR over 20 years despite crashes in 2008 and 2020.
For a goal that's 15 years away, staying in cash or FDs is the risky choice.
"I don't understand it well enough."
You don't need to. A Nifty 50 index fund requires almost no expertise. Start a SIP, let it run, review once a year.
Don't let perfect understanding delay imperfect action.
Starting simply today beats understanding everything in two years.