National Girl Child Day is celebrated every year on January 24 across India to spread awareness about girls’ rights, education, health and safety in society. The Centre initiated the National Girl Child Day in 2008. The aspiration of every parent is to give his/her daughter a good education, marry her off and see her settled in a happy and fulfilling married life. Some might also aspire to see their daughter to grow up and start a small business of her own. You can fund any of these if you start investing for her from the very first year after birth, and the real fun is you can do so by investing a modest amount if you begin early. This article will tell you how you can do this with ease.
Mutual fund SIPs (Systematic Investment Plan) have emerged as the most popular invest avenues for the Indian middle class. Despite the turbulence in the equity markets, every month the amount flowing into SIPs is rising and setting new records. In December 2024, the SIP inflow reached an all-time high of Rs 26,459 crore, surpassing the Rs 26,000 crore mark for the first time. Let’s take the help of an online SIP calculator, which comes free online, and see how you can easily amass about Rs 1 crore by the time your little one turns 20, which is the age when she is stepping into the world of higher education.
Check calculation with a step-up SIP calculator
If you take a step-up SIP calculator, you can easily do the calculation for yourself. For the moment, have a look at the figures below.
- Investment per month: Rs 5,000
- Annual step-up: 10%
- Returns expected: 12%
- Time period: 20 years
- Invested amount in 20 years: Rs 34,36,500
- Estimated returns generated: Rs 65,07,858
- Total value: Rs 99,44,358
What does these figures tell you? In short, if you begin investing Rs 5,000 per month, you will land up with almost Rs 1 crore after 20 years. There are a couple of assumptions in the above calculation: one, you have to raise the monthly investment amount by 10% every year. (For example, it will become Rs 5,500 every month in the second year etc.) Two, the mutual fund scheme will generate an average return of 12%, which is possible in the long term. Three, you will not stop your investments and must do it in a disciplined manner down the years.
“The point to note is that one should start investing soon after birth of the child. The sooner you can begin, the bigger will be the returns. This is a golden rule of investment. What can be a better day to begin investing in the future of your girl child for parents than on National Girl Child Day,” said investment strategist and director, Wishlist Capital, Nilanjan Dey.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
National Girl Child Day is celebrated every year on January 24 across India to spread awareness about girls’ rights, education, health and safety in society. You must know that if you begin investing a sum of only Rs 5,000 a month in a SIP from her first year, you can build this huge amount when she ends her teens, You can easily fund her higher education or even help her set up a business with that amount. To know calculations, read on. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
