Which is a better investment option, mutual funds or a child’s career?

The ideal answer, if your child is small, is “Invest in mutual funds for your child’s education.”

However if i read your question as “investing in mutual funds now vs paying for higher education for your child now”, then the answer is a bit more nuanced. Here is why?

1. Returns: Mutual funds can give 12% to 15% returns over the long run.
2. Options: Most colleges might be able to facilitate education loans that are a fraction of the above.
3. Aid: Will the child get any aid or scholarship in college?
4. Self funding: Is the child motivate and self reliant enough to take up part time jobs to fund the education?
5. Payoff: What kind of salaries can your child expect, once she completes her education?

Consider these FIVE points before deciding on how to deploy your hard earned money. This will be personal decision between you and your child. Hence there is no stock answer.