These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.

I am 48, planning to fund my son’s MBBS degree at a private medical college. The fee is about Rs 21 lakh a year for five years. I am in the 30% tax bracket and have sufficient savings, with 90% of my mutual fund portfolio in equity. Should I redeem my investments to pay the fees or take an education loan? If I opt for loan, what repayment tenure would offer the maximum financialbenefit?

Rushabh Desai Founder, Rupee With Rushabh Investment Services: The original goal of this mutual fund portfolio matters. If it was meant for your son’s education, you can systematically redeem it to fund the fees. If it’s meant for something else, say retirement, then either take a full loan, provided your income is stable enough to service it, or split the cost between the portfolio and a loan. Redeeming equity funds triggers LTCG tax of 12.5% above a Rs 1.25 lakh annual exemption (20% if held under a year). Doing this in tranches of Rs 21-22 lakh a year, matched to each year’s fee, uses the exemption five times over instead of once, sheltering up to Rs 6.25 lakh of gains. Secured MBBS loans typically cost 9-11%. Under Section 80E (Section 129 of the Income Tax Act, 2025), interest is fully deductible for up to eight years, but only under the old tax regime. At the 30% tax rate plus cess, this brings the effective loan cost down to roughly 6.2-7.6%. With a stable, rising income, borrowing can therefore be more tax-efficient.

I’m in Class 10 and plan to study in the UK after Class 12. From next year, I will work part-time, earning Rs 15,00-20,000 a month, and have savings from prize money. What should I do over the next three years to prepare financially for studying abroad? I estimate my education cost at Rs 24 lakh plus modest living expenses. Is a student loan advisable, and how much should I apply for?

Sumit Duseja, Co-Founder & CEO, Truemind Capital: I am glad to know that you are planning for your goals through savings at such a young age. Since your time horizon is short, investing in equity could put you at risk if the markets correct sharply at the time you need funds for your education. Invest your future savings by starting a systematic investment plan (SIP) in direct plans of debt mutual funds, which should yield you a return of 6.5-7%. Assume you save `18,000 monthly for two years, you could accumulate around `4.6 lakh by the end of two years. An education loan is a viable option for studying abroad and can be availed to bridge the remaining gap. The savings from your prize money should be invested in a similar manner in debt mutual funds and can be used towards initial travel or living expenses. It is also recommended to set aside some contingency funds of 6-8 months of essential expenses for emergencies.

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com