Best Investment Plan for Girl Child in India

10 Best Investment Options Available for the Girl Child

Ensuring a safe and secure future for your daughter can be quite stressful, but fortunately, there are several safe and reliable options in India for you to consider. The government backs some of these, and the others are private investment products. All of them have their benefits; some are safety-oriented, others long-term growth focused, and some will give you a steady cash flow. Let us go through them one by one so you can choose the best scheme for girl child in India.

Sukanya Samriddhi Yojana (SSY)

One of the most popular schemes that are associated with a girl child is the Sukanya Samriddhi Yojana (SSY). It was launched by the Government of India under the “Beti Bachao, Beti Padhao” initiative.

• Parents can open this account any time after the birth of their girl child until she turns 10.
• The scheme has one of the highest interest rates in comparison to government-backed savings plans.
• The deposits under the Sukanya Samriddhi Yojana (SSY) can obtain tax benefits under Section 80C.
• The maturity amount from this policy, including the interest earned, is completely tax-free.

It is especially designed to help parents save for their daughter’s education and marriage, making it one of the best investment plans for a girl child in India.

Child Insurance Plans

Child insurance plans combine two things: insurance protection and savings. In simple words, it ensures that even if something unexpected happens to the parent, the child’s future is financially secure.

• These plans act as life insurance plus investment.
• They help in building a fund for the child’s education, marriage, or other future needs.
• Part of these plans can also be in the form of money-back policies, in which they payout a percentage of money at various stages of the policy.

This makes them a reliable means of securing your daughter’s future, as well as a means of increasing your cash over the years.

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a government-supported long-term savings policy.

• It carries a lock-in period of 15 years and can be suitable for accumulating a large corpus in the future.
• The investments in PPF are eligible to be tax-deductible under Section 80C.
• The interest accumulated is exempted, and also the maturity amount.

This is the right policy for parents who desire a risk-free, safe investment with guaranteed returns.

Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme (POMIS) is best for parents who prefer a regular income instead of waiting till maturity.

• It provides monthly interest payouts, which can help cover some ongoing expenses.
• The scheme has a 5-year lock-in period, and you can start with a small amount.
• The returns are fixed and guaranteed, making it a low-risk option.

While the returns may not be as high as SSY or PPF, it offers peace of mind with a steady monthly income.

Fixed Deposits (FDs)

Fixed Deposits (FDs) are one of the most common and trusted investment options in India.

• They are offered by banks and post offices with tenures ranging from 1 to 10 years.
• FDs provide guaranteed interest and are considered extremely safe.
• Some banks also offer tax-saving FDs, which qualify for deductions under Section 80C.

Parents who want to keep money safe and earn steady returns often prefer FDs as part of their child’s future planning.

National Savings Certificate (NSC)

The National Savings Certificate (NSC) is another government-backed option that provides security and fixed returns.

• It is available at post offices across India and has a maturity period of 5 or 10 years.
• NSC currently offers an attractive interest rate and also qualifies for tax benefits under Section 80C.
• The minimum investment amount is quite low, making it accessible for everyone.

This policy for girl child is a good choice for medium-term goals like funding school or college expenses.

Gold Investment

In India, gold has always been considered a safe and valuable investment. Parents can invest in gold in different ways, such as gold coins, jewelry, bars, or even Gold ETFs.

• Gold acts as a hedge against inflation and generally grows in value over time.
• It is also a flexible investment where you can buy small amounts as per your budget.
• Many parents prefer keeping gold as part of their daughter’s marriage fund.

While gold is not government-backed like SSY or PPF, it is still one of the best investment plan for girl child in India.

Recurring Deposit (RD)

Recurring Deposits (RDs) are perfect for parents who want to save small amounts regularly.

• You invest a fixed sum every month for a chosen tenure.
• At maturity, you get back your savings plus interest.
• RDs are available in banks and post offices and are low-risk and reliable.

This option is ideal for families with a limited budget who still want to build a secure future fund for their daughter.

Mutual Funds

Mutual Funds are good alternatives to parents who are seeking relatively moderate growth at a higher risk.

• It allows you to invest in a SIP (Systematic Investment Plan) in small amounts every month.
• Mutual funds provide varying types: Equity Mutual Funds, Debt Funds, and Hybrid Funds.
• The returns of equity funds tend to be better over the long term, but equity funds are riskier.

Mutual funds are great for long-term investment goals, like higher education, as they can multiply and increase easily in comparison to fixed deposits or savings schemes.

Child Plan vs Sukanya Samriddhi Yojana and PPF

As you consider the future of your daughter, three of the most popular names you might have heard of include Child Plans, Sukanya Samriddhi Yojana (SSY), and Public Provident Fund (PPF). Each of these works differently:

• Child Plans provide a combination of insurance and investment so that the future of the child is set, no matter what happens to the parent.
• The Sukanya Samriddhi Yojana (SSY) is a government-sponsored plan, which is especially meant to fund the married life and education of a girl child.
• PPF is a long-term guaranteed savings program, which can be suitable for all who want a secure investment.

To help you compare them better, here is a simple table:

So if you want insurance + investment, the best investment plan for girl child in India would be a Child Plan. If you want a safe, high-return option only for your daughter, SSY may be the best. And if you want flexibility and guaranteed returns for long-term wealth creation, choose PPF.

Final Thoughts

Choosing the best investment plan for girl child in India is dependent on your risk appetite and your future goals. In case you are looking at guaranteed returns, opt between SSY, PPF or FDs. If you want to grow wealth faster, mutual funds and child insurance plans may be better. More traditional investments, such as gold and NSC, also bring stability.

What matters the most is that you start early and stay consistent. Little by little, with regular and smart investment, it can make great savings. After all, securing your daughter’s future is one of the best gifts you can give her.

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