The starting point for this important goal would be arriving at a target amount. While setting the target amount for Child Education Goal, make sure you don’t ignore the impact of inflation on the future value of the goal amount, as most people do. An amount that seems sufficient in today’s terms may prove to be inadequate when your goal date arrives. If you’ve got time on your side (for instance, if your child still has 7 years or more to go before her higher studies), go for SIP’s in aggressive small- cap or and mid-cap oriented funds, regardless of your risk tolerance. Don’t let risk aversion come in the way of your benefiting from the long-term compounding that could accrue from more aggressive funds, as volatility actually works in your favour over the long term.