consider taking an education loan education loans are eligible for tax benefits which bring down the effective cost of the borrowingfor the conservative investora childs higher education is a nonnegotiable goal that cannot be postponed and conservative investors will have to save substantially more take the case of 25yearold anshika rawat who is going to netherlands for her master of science anshikas father started saving early but will still have to use a part of his retirement savings in the long run returns from fixedincome securities may not be able to meet inflation advisers suggest mixing public provident fund and debt funds for tax efficiency on investmentsa recurring deposit is another good option since it allows the investor to lock in at a high ratewhen nearing the goalthe investment strategy has to be dynamic in a longterm goal like your childs education and as you approach the goal the risk appetite should be lowered equity is volatile so you should shift your funds into the safety of debt instruments when you are 23 years away from the goal capital protection is the key in the last year of your goal