5 Best Girl Child Investment
Plans In India

Sugar and spice and all that’s nice, that’s what little girls are made of. Having a baby girl is a blessing and as a parent you want to raise your girl like a princess. As a parent you would want the best for her, make her life secure and safe and be ready for your girl’s higher education and marriage. To do all that, you need to start saving as early as possible.

For this, you take the right investment decision and provide the financial security for your daughter's future. While choosing any investment plan, you need to understand different financial factors, decide short term and long term goals at different stages of your daughter’s life.

To promote the education, health & nutrition of the girl child let’s understand some of the best investment plans for your girl child in India.

Investment Plans for Your Girl Child In India

1. Sukanya Samriddhi Yojana (SSY)
   Sukanya Samriddhi Yojana, shortly known as SSY, is a saving scheme for girl child in India. SSY was launched under the “Beti Bachao Beti Padhao” plan by the Indian Prime Minister in the year 2015. Parents can open this scheme in the name of their daughter in a bank. This plan helps to build the financial corpus for your daughter’s future.
   
   Policy term is till the marriage of the child (girl) after 18 years or 21 years of age, whichever early. The current interest rate for this scheme is 7.6% but you should check the interest rates while opening an account. You can invest from minimum Rs.1000 up till maximum Rs.1,50,000 lakh, annually. One family can have only two accounts, one for each daughter. The income tax is exempted for this plan.
2. Children Gift Mutual Fund
   Children gift mutual fund is a mutual fund schemes for children which invest in the combination of equity and debt instrument. One can invest in children mutual funds only in the name of their child. This scheme has a lock-in period of 18 years. Hence, the returns can offer financial advantages to girls’ future educational needs and marriage expenses and so on.
   
   As a parent, you can invest in Children gift mutual fund for your daughter’s long-term goals.
3. Systematic Investment Plan (SIP)
   Every year, the education is becoming more expensive. For your girl’s bright future, you need to start saving for her higher education to provide her better education. With a systematic investment plan or SIP, you can invest a small monthly amount starting from Rs. 500 that adds up to a significant corpus over time through the power of compounding. It ensures that you invest a fixed amount regularly, which helps you to develop the habit of timely mutual fund investment without any burden. SIP allows you to increase the investment every year as you increase your savings. Hence, it is the right choice to invest early for your girl’s short term and long term financial needs.
4. Fixed Deposit (FD)
   Fixed Deposit or FD is one of the most popular investment types among Indian It allows the parent to open a fixed deposit account on behalf of the girl child. Your daughter can get the returns from an FD at the age of 18 years or when the FD reaches maturity (whichever comes first). Though the interest rate is very low, it is a zero-risk investment option available for a baby girl.
   
   Most of banks have FDs especially for a girl child. You can check the interest rates and start a FD. As it is not possible to withdraw money before the maturity date, it is a best way to invest for higher education or marriage expenses.
5. Public Provident Fund (PPF)
   Opening a PPF for your children is an excellent idea and it one of the popular long-term savings scheme in India. The parent can open PPF account from as low as Rs. 100 up to ?1.5 lakh in a financial year on behalf of the girl child. As the PPF returns are fixed, it is a low risk investment and it also offers tax-saving benefits.

Conclusion

Now you know what type of investment options are available in India for your girl child, all you need to do is check their benefits and features in more details. Based on your child’s financial needs and your income, you can take the right decision.

Source: Nuvamawealth.com