The financial decision to invest in your child’s future today confirms ample support for a child’s education, prosperity and empowerment.
Knowing which savings plan to invest in is crucial as many are available in the market, especially if you have a girl child. For the best investment plan for a girl child in India, you need to assess your goals and choose the best. Moreover, you can use a monthly savings calculator to find out how you can achieve your savings goal regularly.
Most of these plans are managed under the presence or directly by the local guardian of a girl child until they turn 18.
Here are the top 10 saving schemes and investment plans for girl children in India.
Top 10 Saving Schemes and Investment Plans for Girl Children in India
1. Unit Linked Insurance Child Education Plans
ULIPs are investment options that offer a high flexibility of different investment options purely based on your financial goals and risk-taking ability.
They are designed keeping in mind the different long-term goals while also giving the benefit of coverage under life insurance. It is open for parents of a girl child under the age of 18 and has a 5-year lock-in period for partial or complete withdrawal, among other benefits.
2. Child Insurance Plans
Another popular investment tool for a girl child is an insurance plan. All these plans are designed to allow local guardians to build a habit of saving for a girl child till they turn 18.
These plans also provide death benefits to the girl child in case the parent passes away. There is a wide range of these plans available to choose and customise based on specific needs and budget for a better tomorrow.
3. Sukanya Samriddhi Yojana (SSY)
The SSY is a savings scheme by the government designed exclusively for a girl child under the age of 10. It has a high interest rate and offers multiple tax benefits, making it an ideal investment for a better future for your daughter. The investment range is between ₹1000 to ₹1,50,000 annually.
4. Balika Samridhi Yojana
This scholarship tool provides a girl child with financial support to improve her social status. This scheme encourages school enrolments and decreases child marriages by providing a scholarship between ₹300 to ₹1000 when the school starts.
5. National Savings Certificate
Another savings bond by the government is the NSC. It comes with a competitive interest rate and has a fixed period of lock-in of 5 years, and the girl child needs to invest in it jointly with her local guardian. For a deposit, you can start as low as ₹1,000 with no upper limit for investment.
6. Post Office Term Deposit
Another policy for investment is Post Office Term Deposit, which offers a term of five years and can also be transferred around the country. It is a zero-risk plan which can support the parents for a better future for the child. It offers an attractive interest rate, and the minimum deposit amount is ₹1000.
7. Children Gift Mutual Fund
Under this plan, you can benefit from a blend of debt and equity limits. With a fixed lock-in period, higher returns are possible. No partial or complete withdrawal before the child completes 18 years is permitted. For this tool, parents can decrease or increase the invested amount based on their finances.
8. Public Provident Fund
To allow people to have a secure option to save, the government introduced the PPF scheme. Parents invest in this tool till the girl turns 18, and the investment can be between ₹500 to ₹1,50,000 annually. You can avail partial withdrawal after 7 years or close your account for complete withdrawal before maturity.
9. National Scheme of Incentives for the Girls of Secondary Education
The Department of School Education and Literacy curated this scheme to help girls from the rural classes benefit from better higher education. Under this policy, a girl child receives ₹3000 as a fixed pay for school annually. Once the girl graduates 10th grade, the amount is available for withdrawal.
10. Gold ETFs
Gold is considered a top choice for investment. However, instead of buying physical gold, you can now invest via gold ETFs. They are similar to mutual funds and can be purchased online. You can also opt out as required. The best part is you don’t have to store the gold and can start with a small investment.
Conclusion
The decision to invest in a better future for the girl child is crucial for her tomorrow. Choosing between the top 10 schemes and plans available for better financial security is based on your financial capacity. You must assess your risk tolerance to choose the most suitable option. Ultimately, all these investments will promise a brighter future for your daughter.