A Comparative Evaluation of Traditional and Modern Financial Instruments for Long-Term Educational Planning: Evidence from an Urban Indian Context
Bhumi Sahu1
Student,
Dept. of MBA., Sipna College of Engineering and Technology, Amravati 444607, Amravati (MS.), India
24mb0020@sipnaengg.ac.in
Dr.M.D.Jadhav2
Professor and Head MBA Department,
Dept. of MBA., Sipna College of Engineering and Technology, Amravati 444607
Amravati (MS.), India
manish_pari78@rediffmail.com
Abstract
Education has emerged as one of the most critical long-term financial commitments for Indian households. Rapid escalation in education costs, coupled with rising aspirations for professional and overseas education, has intensified the need for structured educational financial planning. Traditionally, Indian parents have relied on low-risk saving instruments such as fixed deposits, public provident funds, and life insurance policies to fund their children’s education. However, economic liberalization, digital financial inclusion, and growing financial awareness have introduced modern investment instruments such as mutual funds, systematic investment plans (SIPs), equity-linked savings schemes (ELSS), and child education plans. This study evaluates the relative effectiveness of traditional and modern financial instruments in achieving long-term educational goals of parents. Using assumed primary survey data collected from parents in Amravati city and supported by secondary financial data, the study applies descriptive and comparative analysis techniques. The findings reveal that while traditional instruments provide stability and capital protection, modern instruments demonstrate superior long-term growth potential and better inflation-adjusted returns. The study concludes that a balanced investment approach combining both categories can enhance educational financial preparedness. The paper contributes to the growing discourse on goal-based financial planning in emerging economies.
Keywords: Educational Planning, Mutual Funds, Financial Effectiveness
