Parents who wish to secure the lives of their girl child can consider choosing a few investment plans that are suitable for their future monetary requirements. These plans would help overcome any financial issues that may arise in the future. Also, with several investment options available, it is crucial to choose your investment only after proper research.
But evaluating your plans before investing helps you understand the returns you may receive through your investment plans and whether that would suffice for your goal.
Here are few plans that you can invest for your girl child
Sukanya Samriddhi Yojana (SSY): This scheme was launched with the aim of securing the life of the girl child. The tenure of this scheme is 21 years from the date of account opening or till the girl gets married, which is 18 years. The minimum investment in this scheme is ₹250, while the maximum investment is ₹1.5 lakh per annum. An SSY account can be opened either in a bank or at the post office with returns depending upon the invested amount at a fixed interest rate.
Read more to know about What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?
National Savings Certificate (NSC): This is a low-risk investment that can be opened only in post offices. One can start investing in NSC with a minimum investment of ₹1000 and a lock-in period of 5 years. Saving in this scheme gives income tax benefits and is also helpful for those who are low-risk investors. This is an ideal investment for a girl child as you get low but comparatively stable returns.
United Linked Insurance Plan (ULIP): This plan is considered one of the high-return investment schemes which offer triple benefits in case parents pass away:
- In the absence of parents, the plan pays the future premiums
- The company pays the monthly income to the girl child to fund the education
- A lump sum payout is given to meet the daily expenses of the girl child in the absence of the parents
Systematic Investment Plan (SIP):
SIPs are a way of investing in different market-linked products such as equities, debts, or hybrid funds. One can choose to invest as little as ₹500 in fixed intervals such as monthly or quarterly. Investing through SIPs has many advantages, as you can enjoy the power of compounding.
SIPs in mutual funds are the best way to enter stock markets. SIPs are helpful if you have a specific goal in mind for your child. For example, accumulating funds for your daughter’s masters in abroad or financing her professional career.
Public Provident Fund (PPF):
One of the most common low-risk investments is Public Provident Fund which provides decent returns on investment. This investment scheme has a lock-in period of 15 years which can be extended up to 5 years. The minimum investment in this scheme is ₹500 or a maximum of ₹1.5 lakh per annum. This scheme allows the parents to take a loan against the invested amount.
Now that the education expenses are skyrocketing, investing in a good savings plan would assure your child, whether a girl or boy, to continue education seamlessly without any monetary hiccups. Investing early, right from the 1st year of birth, would ensure that your child has sufficient corpus to meet any monetary expenses other than just education.
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