Post-Budget SSY vs Equity: Where Should You Invest for Your Daughter’s Secure Future?

For the secured future of the girl child, investing in the government scheme Sukanya Samriddhi Yojana is very popular among parents. In this scheme, several lakhs of rupees can be deposited at the appropriate age of the girl child based on a fixed interest rate. The returns in this scheme are also guaranteed as per the government. However, if the goal of financial growth is higher, one can bet on equity. However, there is a question of how safe the future financial fund is for the daughter in market-controlled equity.

For most families, whether middle class or lower middle class, the debate between Sukanya Samriddhi Yojana and equity investment comes down to a simple question. That is, do you want guaranteed returns or more long-term potential? The real debate is about certainty versus growth.

Sukanya Samriddhi Yojana:

Sukanya Samriddhi Yojana is a favorite among parents because it combines steady returns and strong tax benefits. With an annual interest rate of about 8.2 percent and deductions under Section 80C of the Indian Income Tax Act, it is a predictable way to build a large fund.

Sukanya Samriddhi Yojana is popular because it offers guaranteed, tax-free returns. With an annual interest rate of 8.2 per cent and tax benefits under Section 80C, the scheme offers families a predictable way to invest a large sum of money.

As CA Meenal Goel points out, “My sister’s daughter will get Rs 71 lakh tax-free. She has invested in Sukanya Samriddhi Yojana, and to be honest, it is a very powerful scheme.” He explains, “If you invest Rs 1.5 lakh every year for 15 years at a rate of around 8.2 per cent, it can grow to around Rs 71 lakh by the age of 21.”

Also, the scheme follows the EEE model — investment, interest and maturity are all tax-free.

Goel adds, “As long as Sukanya Samriddhi Yojana is covered under the Income Tax Act, contributions over a period of 15 years are eligible for 80C.” For those who value stability and clarity, this certainty is a big draw.

Equity

Equity tells a different story. It is focused on growth. In the long term, equity mutual funds have historically outperformed most fixed-income options, though not without sharp ups and downs.

“Historically, equity mutual funds have delivered better long-term returns than Sukanya Samriddhi Yojana,” says Goel. While equity focuses on growth, Sukanya Samriddhi Yojana focuses on certainty.”

Equity gains are subject to long-term capital gains tax, which reduces the ultimate return. Yet those who are patient through market cycles can still build wealth that outperforms traditional savings products.

Finding the middle ground

For Goel and many experienced investors, the decision is not about choosing one and ignoring the other. “Because Sukanya Samriddhi guarantees protection rather than maximum growth. Equity rewards patience but tests emotions.”

In practical terms, Sukanya Samriddhi offers protection but limited growth, while equity brings growth with some volatility. Experts often recommend combining both to balance protection with growth.

Simply put, the best option depends on your risk tolerance and financial goals. If you prefer peace of mind and guaranteed returns, Sukanya Samriddhi Yojana provides a strong foundation. If you are comfortable with market fluctuations and want higher potential returns, equity may be a better fit for you. For many families, a mix of the two can create a balanced path to long-term wealth.