1. The Hidden Threat of 10% Higher Education Inflation
Most Indian parents estimate future college fees based on general consumer inflation (4-6%). However, professional education has consistently inflated at 9% to 11% annually over the last two decades.
Comparative Analysis Breakdown
| Parameter / Feature | Public Provident Fund (PPF) | Minor Equity Mutual Funds |
|---|---|---|
| Historical Annualized Yield | 7.1% p.a. (Government Fixed) | 12% – 14% p.a. (Market-linked CAGR) |
| Higher Education Inflation Deficit | -2.9% Net Real Loss annually | +2.0% to +4.0% Real Alpha gained |