Parents look for high-return investment options for their daughters’ education and marriage. Currently, there are many investment choices available for securing their future.
If you prefer a risk-free investment, you can invest in the government-backed Sukanya Samriddhi Yojana. However, if you are open to risk and potential higher returns, mutual funds can be a good option. Throughout this article, we will provide the latest comparison after Budget 2025 to help you determine which investment option is more profitable.
About Sukanya Samriddhi Yojana
The Government of India offers an 8.2% interest rate on Sukanya Samriddhi Yojana (SSY). You can invest a minimum of ₹250 and a maximum of ₹1.5 lakh in a financial year. This scheme matures in 21 years, but investments are required only for 15 years.
If you do not deposit money in the account every financial year, it gets frozen. Since there is no risk and guaranteed returns, it is a preferred choice for parents planning their daughter’s future.
About Mutual Funds
If you are looking for higher returns, investing in mutual funds can be a good option. However, mutual funds are linked to the stock market, meaning they come with risks. You can choose SIP (Systematic Investment Plan), where you invest a fixed amount every month and build a large corpus over time. To decide which option is more beneficial, let’s compare the returns.
How Much Return Will You Get in Sukanya Yojana?
If you invest ₹5,000 per month in Sukanya Yojana, you will contribute:
- ₹60,000 per year
- ₹9,00,000 over 15 years
After 21 years, at 8.2% interest, you will receive ₹18,71,031 as interest.
So, your total maturity amount will be ₹27,71,031.
How Much Return Will You Get from SIP?
If you invest ₹5,000 per month in SIP for 15 years, your total investment will be ₹9,00,000.
At an estimated 12% annual return, your interest amount will be ₹16,22,880 after 15 years. So, your total corpus will be ₹25,22,880.
Sukanya or SIP? (SSY Vs SIP)
1. Tax Benefits: Sukanya Yojana falls under the EEE (Exempt-Exempt-Exempt) category, meaning no tax is applicable on investment, interest, or maturity amount. In contrast, SIP does not offer tax benefits unless invested in ELSS (Equity Linked Savings Scheme).
2. Risk & Returns: Sukanya Yojana offers guaranteed returns without risk. SIP returns depend on market performance, making them unpredictable. However, long-term investments in SIP help reduce risks.
3. Eligibility: Sukanya Yojana is only available if your daughter is below 10 years old. SIP has no such age limit, and you can start anytime.
4. Flexibility: SIP is more flexible—you can start or stop it anytime, whereas SSY requires fixed contributions.
Disclaimer: The returns mentioned are based on estimated calculations and may vary. Mutual funds are subject to market risks; past performance does not guarantee future results. Please consult a financial advisor before making any investment decisions. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility.
