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With its rich academic tradition, world-class institutions, and multicultural environment, the UK is an ideal destination for students aspiring to pursue higher education. Universities like Imperial College London, University of Oxford, University of Cambridge, and UCL London are among the global top 10 in the QS 2025 World University Rankings, released on Wednesday. However, the financial aspect of sending a child abroad for education can be daunting. Let's explore how Indian parents can plan and invest wisely to achieve this goal.
UK fee structure
According to Rittika Chanda Parruck MBE, Director Education India, British Council, "Tuition fees for courses in the UK vary significantly depending on the level of study and the specific institution."
"For international students, undergraduate fees range from around £10,000 (Rs 10,66,357) to £26,000 (Rs 27,72,529) per year for lecture-based degrees. For medical degrees, students can expect to pay up to £58,600 (Rs 62,48,855) per year. For postgraduate studies, tuition fees generally range from £15,000 (Rs 15,99,536) to £30,000 (Rs 31,99,072) per year," she says.
Living expenses depend on the study location. The UK Visas and Immigration (UKVI) estimates that students in London spend about £1,334 (Rs 1,42,252) per month, while those outside London spend around £1,023 (Rs 1,09,088). These expenses include accommodation, food, transportation, and other costs.
Many UK universities offer budget calculators on their websites to help students estimate annual expenses, covering tuition fees, accommodation, food, transportation, and other personal costs.
Financial planning and investment strategies
Example: Mr Chand plans to send his daughter Ria to the UK for higher education when she turns 18 (she is 8 now).
On average, studying at a college in the UK costs about Rs 30-40 lakh per annum. A typical course duration is 4 years. Therefore, the total graduation cost is around Rs 1.6 crore. Additionally, it's wise to set aside about Rs 40 lakh for unforeseen expenses. This brings the total to Rs 2 crore.
According to Hrishikesh Palve, Director, Anand Rathi Wealth Limited, it's never too early to start planning for education abroad, to not let such expenditure or goal affect your other goals e.g., retirement etc.
But the big question is: where to begin or how much to estimate.
Investment tools and strategies explained
To reach the Rs 2 crore target for Ria's education in the UK, Mr Chand can use a combination of investment tools and strategies, with a focus on longer investment horizons and lower monthly amounts.
Long-term goals (10+ years)
Return objective: Around 12%
Strategy: Invest in an 80:20 ratio of equity to debt funds for the first 8-9 years, then shift to liquid funds in the final year.
Example: Mr Chand starts investing when Ria is 8 years old, giving him 10 years until she goes to university.
1. Equity funds (80%)
Amount: Rs 1.6 crore (80% of Rs 2 crore)
Amount: Rs 1.6 crore (80% of Rs 2 crore)
Monthly SIP: Rs 68,000 over 10 years
Expected annual return: 14%
Total value after 9 years: Rs 2.8 crore
2. Debt funds (20%)
Amount: Rs 40 lakh (20% of Rs 2 crore)
Monthly SIP: Rs 17,000 over 10 years
Expected annual return: 6%
Total value after 9 years: Rs 55 lakh
3. Shift to liquid funds in final year
Total value of portfolio: Rs 2.8 crore (equity) + Rs 55 lakh (debt) = Rs 3.35 crore
Rebalance: Shift Rs 1.35 crore from equity to liquid funds for stability.
Medium to short-term goals (5-7 years)
Return objective: Around 10.8%
Strategy: Invest in a 60:40 ratio of equity to debt funds for the first 4-5 years, then move to short-term debt funds in the final year.
For instance: Mr Chand starts investing when Ria turns 12 years old, giving him 6 years until she goes to university.
1. Equity funds (60%)
Amount: Rs 1.2 crore (60% of Rs 2 crore)
Monthly SIP: Rs 80,000 over 6 years
Expected annual return: 14%
Total value after 5 years: Rs 1.7 crore
2. Debt funds (40%)
Amount: Rs 80 lakh (40% of Rs 2 crore)
Monthly SIP: Rs 53,000 over 6 years
Expected annual return: 6%
Total value after 5 years: Rs 95 lakh
Total value after 5 years: Rs 95 lakh
3. Shift to short-term debt funds in final year
Total value of portfolio: Rs 1.7 crore (equity) + Rs 95 lakh (debt) = Rs 2.65 crore
Rebalance: Shift Rs 65 lakh from equity to short-term debt funds for stability.
Short-term goals (3-4 years)
Return objective: Around 5-6%
Strategy: Invest in a 50:50 ratio of equity to debt funds for the first 2-3 years, then move to short-term debt funds in the final year.
Example: Mr Chand starts investing when Ria turns 15 years old, giving him 4 years until she goes to university.
1. Equity funds (50%)
Amount: Rs 1 crore (50% of Rs 2 crore)
Monthly SIP: Rs 1.5 lakh over 4 years
Expected annual return: 14%
Total value after 3 years: Rs 1.2 crore
2. Debt funds (50%)
Amount: Rs 1 crore (50% of Rs 2 crore)
Monthly SIP: Rs 1.5 lakh over 4 years
Expected annual return: 6%
Total value after 3 years: Rs 1.15 crore
3. Shift to short-term debt funds in final year
Total value of portfolio: Rs 1.2 crore (equity) + Rs 1.15 crore (debt) = Rs 2.35 crore
Rebalance: Shift Rs 35 lakh from equity to short-term debt funds for stability.
Age-based investment strategy
Starting at 5 or 10 years old
Years: 15 years and 10 years respectively.
Asset allocation: 80:20 in equity and debt funds.
Example: For a 10-year investment horizon, Mr Chand can start with Rs 68,000 per month in equity and Rs 17,000 per month in debt.
Starting at 15 years old
Time horizon: 4 years.
Asset allocation: 50:50 in equity and debt funds.
Example: For a 4-year investment horizon, Chand can start with Rs 1.5 lakh per month in both equity and debt.
By using these investment tools and strategies with a longer investment horizon and lower monthly amounts, Mr Chand can systematically reach the Rs 2 crore target for Ria's education. "Early planning and regular investments in a balanced portfolio will ensure that the financial goal is achieved without compromising other financial priorities," says Hrishikesh Palve.
Job opportunities after graduation
Graduates from UK universities have a wide range of job opportunities across various sectors.
"Beyond traditional fields like Accounting, Finance, and Medicine, the job market now includes roles in Construction, Computing (including AI and Data Science), Graphic Communication, and more. Graduates can find opportunities as fashion consultants, lawyers, toxicologists, and journalists, among others," says Shruti Jaggi, Senior Regional Adviser - South Asia at Nottingham Trent University.
"Beyond traditional fields like Accounting, Finance, and Medicine, the job market now includes roles in Construction, Computing (including AI and Data Science), Graphic Communication, and more. Graduates can find opportunities as fashion consultants, lawyers, toxicologists, and journalists, among others," says Shruti Jaggi, Senior Regional Adviser - South Asia at Nottingham Trent University.
Universities host placement sessions and job fairs, providing students with the chance to meet potential employers, share their CVs, and learn about job openings. These fairs typically take place on campus and help students network with representatives from various industries.
According to the QS Graduate Employability Rankings, graduates from UK colleges are among the most employable worldwide. Additionally, as per the International Graduate Outcomes (UUKI), 83% of international graduates attribute their employment success to their UK degrees.
"While the average salary package for UK graduates varies by industry and role, graduates from top UK universities can expect competitive starting salaries. Tracking graduate salaries is complex due to factors such as work hours, individual profiles, and employment regions, but the average starting salaries typically range from £25,000 to £35,000 (Rs 25 to 35 lakh) annually," Shruti Jaggi explains.
Sending a child to study in the UK is a significant financial commitment, but with careful planning and strategic investments, it is achievable. Early planning and regular investments in a balanced portfolio will help achieve this goal without compromising other financial priorities.
