Build equity-heavy portfolio to reach large target corpus

Diversify into global assets and gold to hedge against currency risk

- HIMALI PATEL

According to the recently published HSBC Quality of Life Report (2024), 78 percent of Indian parents either aspire to send their child overseas to study or already have a child enrolled in a foreign university. However, the survey found that only 53 percent of respondents had an education savings plan. The report also highlights that funding a three-year degree abroad could consume 48 percent of parents' retirement savings, while a four-year degree could exhaust as much as 64 percent.

Strong desire for global education

In the last decade, lakhs of Indians have sent their children to countries like the US, UK, Canada, Australia, Singapore, and Europe. "Global exposure, quality infrastructure, and the prospects of a higher standard of living have fueled the dreams of sending children abroad for studies," says Neeraj Khanna, co-founder & director, Spark Career Mentors.

Rising disposable incomes have made foreign education more accessible. "Multiple banks and financial institutions offer student loans, making it easier to manage costs," says Khanna. The desire to settle abroad is a key motivation. "A foreign degree is considered a pathway to obtaining a permanent residency in those countries," says Arnav Pandya, founder, Moneyeduschool.