Rs 50 lakh in the bag. Should he push for more?

Surendra has built a Rs 50 lakh corpus for his son’s overseas education. But rising costs are making him anxious. Should he shift to small caps for higher returns, or protect what he has? Surendra is at an important stage in his financial journey. He has diligently invested in flexi-cap funds and built a healthy corpus of Rs 50 lakh for his son’s overseas education. But now, with just three years left before his son starts college, rising education costs abroad have him worried. Will this amount be enough? And if not, should he shift to small-cap funds in the hope of earning higher returns? It’s a situation many parents may face when planning for their child’s future. But is chasing higher returns really the right move at this stage? Why chasing higher returns can backfire After years of careful saving, Surendra’s focus now should be on protecting what he has built, not risking it for a little extra growth. Moving into small-cap funds might sound like a way to make up for rising costs, especially since these funds are known to deliver higher gains during market rallies. But it could do more harm than good. Small-cap funds are known for their sharp ups and downs. When markets fall, small-cap funds usually drop harder and take longer to bounce back. If this happens just as the education expenses start, you could fall short of what you need, right when you need it most. Let’s look at how small-cap funds have far

This article was originally published on July 20, 2025.