New Delhi: Often, parents find it extremely difficult to choose the right investment plan to make their child financially secure. Mutual Fund SIP and Sukanya Samriddhi Yojana are two popular investment options. However, it may be noted that while SIP can be done for any gender, SSY is only restricted to girl children.
In this article, we will inform you about the benefits and limitations of Mutual Fund investments and Sukanya Samriddhi schemes to help you make the right financial decision for your children.
Sukanya Samriddhi Yojana calculator: Interest rate details
Sukanya Samriddhi Yojana, a centrally governed savings scheme, is specially designed for girl children. At present the government has fixed the interest rate at 8.2 per cent. Minimum deposit Rs 250/- and maximum deposit is Rs 1.5 lakh in a financial year. The yojana also comes with tax benefits as it is placed under the EEE category. It is mandatory to make investments in this scheme for 15 years and the money is received only after 21 years. Let’s see this with an example
If an applicant makes an investment of Rs 5,000 per month for 15 years, the total investment will be Rs 9,00,000. With the current interest rate of 8.2 per cent, the beneficiary will receive Rs 27,71,031, out of which interest will be Rs 18,71,031. Sukanya Samriddhi has fixed guaranteed returns.
SIP calculator
Mutual Fund SIP is a stock market linked scheme, in which the investor gets returns based on the market performance. This investment plan has no age limit and there is no maximum investment limit. There are no fixed guaranteed returns and the market players consider an average return of up to 12 per cent while calculating the returns for 15 or more years.
If Rs 5,000 per month is invested in a SIP scheme for 15 years, the total investment amount will be Rs 9,00,000. With an average expected return of 12 per cent annually, the beneficiary is expected to get Rs 25,22,880, out of which would be Rs 16,22,880.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
This article compares two popular child investment options: Mutual Fund SIP and Sukanya Samriddhi Yojana (SSY). SSY is a government scheme for girls. It offers fixed, guaranteed returns (currently 8.2%) but has limitations on age and investment duration. SIPs, linked to market performance, offer potentially higher returns (average 12%) but carry higher risk and no guaranteed returns. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
