Hi Sir, I'm a 37 yrs aged salaried employee working in Ahmedabad with monthly in hand salary of 150 k after tax and with 2 kids my son(his age is around 5 yrs) and my daughter (her age is around 2 yrs). My financial details are as below:- 1) Term Life Insurance (2 crore) 2) Health insurance from 2 companies (15 lakhs) 3) Emergency fund (8 lakhs) 4) MF 12 year old (31.50 lakhs as on date) 5) My House (Approx. 60 lakhs) My Monthly expenses 1) 30 k Mutual Funds SIP (Which I use to increase 10% per year) 2) Home Loan EMI 14.75 k(Loan o/s 20.00 lakhs) 3) The cost of running House 50.00 k 4) Monthly savings approx. 50 to 55 k Stock Market Portfolio 1) I am not professional trader but from last 8 years I am doing trading with my own methods & with proper hedging. My Trading capital is approx. 35 lakhs and I use to get 50-55 k monthly from this but I never withdraw amount it's get accumulated due to that my capital is now 35.00 lakhs. My question I want to make sure that my both Childs will not get any hurdle in their Higher Education. I am having monthly 50 k extra amount from my salary but I am totally confused that whether I should put it in My Trading portfolio or in Mutual fund. Because mutual funds are giving approx. 9.40% after all deductions including tax and all I calculated on my own. I am getting 17-18% yearly from my trading but it's Risky. I want to ask that whether should I put this extra 50k to secure my Childs Higher studies.

Ans: You’ve done a lot of good things already.

Strong insurance, growing MF corpus, steady income, and careful trading discipline.

You’re asking the right question at the right time — How do I secure my children’s education without any risk?

This is a perfect moment to design a 360-degree financial strategy focused on certainty, not just returns.

Let’s assess this together.

Priority: Ensure Certainty for Your Children’s Future
Higher education is a non-negotiable financial goal

You must ensure it happens with 100% confidence, even in worst-case scenarios

For this, you should not take unnecessary risk on this goal

Your Rs. 50K/month surplus must work safely towards this target

Your trading income can continue — but should not be used for this goal

That money can be used later for early retirement or wealth building

Let us now break this down in practical terms.

Education Goals Should Be Firewalled from Market Risk
Your son is 5. He will need funds at 18. That’s 13 years ahead.

Your daughter is 2. Her goal is about 16 years away.

You have a clear time horizon, which is a huge advantage

This allows disciplined planning using equity mutual funds

But not every kind of equity exposure is suitable for this purpose

Volatility is good for long-term wealth — but not for goal-specific milestones

Hence, use mutual funds wisely, not randomly

Why Trading Is NOT Right for Education Goals
Let’s accept — you are skilled in trading.

Still, it has no place in goal-based investing.

Trading is always risky, no matter how skilled you are

A single bad year can wipe out returns or even capital

For children’s education, you need stability, not thrills

Trading may be used to create wealth, not to meet fixed goals

It’s like doing stunts when taking your kids to school — not required

So, don’t mix trading portfolio with education funding

Keep both completely separate

Mutual Funds: The Better Path for Goal Certainty
You already have Rs. 31.5 lakhs in mutual funds.

This is a great start.

Add your Rs. 50K/month to these investments for next 10 to 15 years

Stick to diversified equity mutual funds managed by experienced professionals

Prefer regular funds through Certified Financial Planner

Avoid direct funds — they give no support or guidance when markets fall

Regular funds help you stay on track through proper advice and handholding

Most investors in direct plans panic or make mistakes during corrections

Also avoid index funds — let me explain why.

Why Index Funds Are Wrong for Education Goals
Index funds are popular because of low cost.

But cost is not the full story.

Index funds blindly follow the index, good or bad

They cannot switch sectors or stocks during market crisis

In 2008 and 2020, index funds fell hard and took long to recover

No strategy, no protection, no risk filter — only blind following

For children’s education, this is not acceptable

You need actively managed funds with clear strategy and consistent performance

Fund manager must take calls during bull and bear phases

That’s why actively managed funds in regular plans are ideal.

Suggested Mutual Fund Strategy (Without Scheme Names)
You should have a structured portfolio with these layers:

Flexi Cap Fund: Core growth, across market caps

Large & Mid Cap Fund: Balanced growth with limited volatility

Aggressive Hybrid Fund: Mix of equity and debt, smoother ride

Mid Cap Fund (Optional): Only if risk appetite is high

You don’t need small cap, sectoral, or international funds for this goal.

Keep portfolio simple, diversified and review annually

Avoid new fund offers or thematic stories — no relevance to education goals

SIPs with Annual Step-Up = Perfect Tool
You are already stepping up SIP by 10% yearly

This is an excellent habit.

It helps fight education inflation (around 8% yearly in India)

It uses compounding effectively with growing contribution

Continue Rs. 50K SIP in 3-4 carefully selected schemes

Review performance yearly with your Certified Financial Planner

If any fund underperforms for 3 years, switch it safely to better option

Don’t decide based on one-year returns or market noise

Use Goal-Specific Buckets for Children
It helps to break your SIPs into 2 buckets:

Bucket A: Son’s Higher Education

SIP for next 13 years

Use Flexi Cap + Large & Mid Cap + Hybrid mix

Bucket B: Daughter’s Higher Education

SIP for next 16 years

Slightly more aggressive portfolio acceptable

This way, goals remain separate, tracked, and managed individually

Don’t combine all goals into one single MF portfolio

Use STP for Final 3 Years Before Goal
When each child is 15, shift SIP value to low-risk funds

Use Systematic Transfer Plan (STP) to move from equity to debt gradually

This protects the amount from sudden market crashes

This should be planned in advance

CFP will help manage these switches without emotional panic

Many investors ignore this and lose money just before goal date

You must protect capital when goal is near

Tax Awareness Is Also Important
New tax rules are simple:

Equity mutual funds:
LTCG above Rs. 1.25 lakh taxed at 12.5%
STCG taxed at 20%

Debt mutual funds:
Taxed as per your income slab

Keep records of all redemptions for capital gain tracking

During withdrawal, your Certified Financial Planner will help with efficient tax management

Emergency Fund and Insurance Are Strong Already
You already have Rs. 8 lakh emergency fund.

Also Rs. 2 crore term life cover and Rs. 15 lakh health cover.

This makes your foundation very strong.

So your Rs. 50K/month can be safely invested for future goals.

You don’t need more insurance, ULIPs, or endowment plans.

If you had LIC or any investment-cum-insurance — I would ask you to surrender.

Thankfully, your structure is clean and efficient.

Your Trading Portfolio Can Be Used Differently
Right now you have Rs. 35 lakh trading capital.

You are not withdrawing anything, which is fine.

Continue this — but use it for building long-term corpus.

Maybe for early retirement, luxury purchases or legacy.

But don’t consider this as children’s education backup

Because it’s not protected from market risk or psychological pressure

Use this power responsibly, not emotionally

Discipline is key — don’t mix trading and long-term investing

Simple Action Plan for You
Continue current SIPs with 10% step-up

Add new Rs. 50K SIP in carefully selected mutual funds

Keep children’s education funds separate from other goals

Avoid index funds, direct plans, ULIPs, and NFOs

Stick to regular plans through Certified Financial Planner

Review all funds every 12 months

From age 15 of child, shift money to debt slowly through STP

Let trading profits accumulate separately — don’t rely on it for family goals

Maintain emergency fund as it is — don’t use for investing

Keep tracking your goals, not the market

Finally
You are a responsible father and thoughtful investor.

Your current lifestyle, savings, and planning show high maturity.

Your children’s future can be secured easily — if you separate goal-based investing from trading returns.

Use mutual funds as your education engine.

Stay disciplined and guided by Certified Financial Planner.

That’s how you will not just grow wealth, but achieve goals without stress.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment