SIP vs. Sukanya Samriddhi Yojana: In today’s times of rising inflation, parents consider it essential to plan their children’s savings for a secure and better future. This is why investment options like SIP and Sukanya Samriddhi Yojana have become increasingly popular. You can create a balanced portfolio by dividing your investments between the two. However, if you prefer to choose only one option, the simple calculations below can help.
Who is the Sukanya Samriddhi Yojana beneficial for?
This scheme is considered the safest government scheme for young daughters. It can be started with just Rs. 250. The interest rate under this scheme is up to 8.2 percent, which is unaffected by market fluctuations. This means you get completely safe and guaranteed returns.
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If the plan term is 15 years and investors deposit ₹5,000 every month, they receive approximately ₹8,27,321 in interest after 15 years. This brings the total amount to approximately ₹17,27,321, while the total investment is ₹9 lakh.
Systematic Investment Plan (SIP)
SIP is an easy way to invest in mutual funds. Investors invest a fixed amount every month and earn good returns over the long term. Typically, SIPs can yield an estimated annual return of approximately 12 percent, although this can vary depending on market conditions.
If ₹5,000 is invested every month in an SIP for 15 years, the return can be approximately ₹14,79,657. This total amount is approximately ₹23,79,657. These returns are estimated, but SIPs can be very helpful in building a large corpus over the long term.
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Which option is better?
Choosing SIP or Sukanya Samriddhi Yojana (SSY) depends entirely on your needs and risk tolerance. If you want a safe investment with guaranteed interest, the Sukanya Samriddhi Yojana (SSY) is a better option. However, if you want to build a large corpus over the long term and can take market risk, a SIP may be a more profitable option for you.