In Indian society, daughters are considered a form of Lakshmi. As soon as a daughter is born in the family, parents start worrying about her education, marriage, and future. The Modi government is ensuring the safety of the existence and education of daughters through the ‘Beti Bachao Beti Padhao’ campaign.
The central government runs many such schemes, through which you can secure your daughter’s future. There are many such investment plans available in the market, too. In such a situation, when it comes to securing the future of the daughter, many parents are unable to decide which of the government’s Sukanya Samriddhi Yojana and mutual funds is more secure and in which they can get better returns by investing. So, let’s do an in-depth analysis of both the schemes.
Guarantee of Sukanya Samriddhi or strong return of SIP
Well, if you want, you can invest in the Sukanya Samriddhi Yojana. At the same time, for better returns in the long term, you can also invest in a good mutual fund through SIP. This will maintain balance in your portfolio. But, if you want to choose one of these two, then we are telling you the calculation of returns in the Sukanya Samriddhi Yojana and SIP. This can help you make the right decision for your daughter’s future.
Sukanya Samriddhi Yojana
If you want to collect funds for your daughter’s future, her education, and marriage, then the Sukanya Samriddhi Yojana of the Government of India can prove to be very useful for you. By investing in this scheme, you can deposit funds up to ₹ 70 lakh. The government gives an interest of 8.2% on this! Sukanya Samriddhi Yojana accounts can be opened only for daughters from birth to the age of 10 years. This account can be opened for a maximum of 2 daughters in a family. There is also a facility to open more than two accounts in case of the birth of twins or 3 daughters. This scheme is a powerful tool for the bright future of daughters.
How much and for how many years will you have to invest
Talking about investing in Sukanya Samriddhi Yojana, a minimum of ₹ 250 and a maximum of ₹ 1.5 lakh can be invested annually. Investment has to be made in this account for 15 years. In this, you get guaranteed returns. Even after 5 years of opening an account in this scheme, it can be closed under certain circumstances. This scheme not only gives good returns but also gives you income tax exemption.
Calculation of Sukanya Samriddhi Yojana
If a person takes Sukanya Samriddhi Yojana for their daughter and invests ₹ 5000 every month, then after 15 years at an annual interest rate of 8.2%, they get a return of ₹ 8,27,321. With this, the total amount becomes ₹ 17,27,321. That is, you deposited only about ₹ 9 lakh in 15 years, but after maturity, your total amount becomes ₹ 17,27,321. This small saving can give big support to the future of daughters.
Withdrawal facility for education and marriage after 18 years
The account will mature after the daughter turns 21 or gets married. Then you will get the full amount including interest! Up to 50% of the amount can be withdrawn from the Sukanya Samriddhi Yojana account after the age of 18 for the child’s higher education expenses. Apart from this, money can also be withdrawn at the time of the girl’s marriage after the daughter turns 18. This facility helps parents to meet the needs of their daughters.
Get income tax benefits on investments up to ₹ 1.5 lakh
By investing in Sukanya Samriddhi Yojana, one can avail of tax exemption under Section 80C of the Income Tax Act. Under this, you can get tax exemption on investment up to ₹ 1.5 lakh annually. You will get this exemption only under the old tax system. This is a great way to save tax as well as secure the future of daughters.
Systematic Investment Plan
Systematic Investment Plan, i.e., SIP, is the easiest way to invest in mutual funds. Under this, investors get a minimum return of up to 12%. This return is estimated because the return received in mutual funds depends on the fluctuations of the market. In equity mutual funds, any option can be chosen according to your need from index funds, large-cap funds, and mid-cap funds. However, investing in equity mutual funds is the best option for investments of 10 years or more. SIP gives you a chance to get better returns with market risks.
Who can do SIP
There is no need for any special type of investor to invest in SIP. Anyone with a regular income can do a SIP according to their budget. The minimum limit of investment in SIP is ₹500 per month. The maximum limit is not fixed. Investing in SIP is also a good option for those who want to plan for their children’s education, marriage, or life after retirement. It is a powerful way to convert small savings into a big fund.
Get more than ₹23 lakh by investing ₹5000 every month
If a person invests ₹5000 every month through SIP, then after 15 years at a rate of 12% return, he will get ₹14,79,657. With this, the total amount will become ₹23,79,657. However, this return is estimated. If the market performs well, the total value can be more than ₹23 lakhs. SIP gives you the possibility of higher returns in the long term.
Sukanya Samriddhi or SIP, which is better
Which plan is better for you, Sukanya Samriddhi or SIP? It depends on your personal choice and objectives. Sukanya Samriddhi gives you guaranteed returns at a fixed interest rate. But if you are in a position to take risks, then you cannot get better returns than SIP in the long term. Apart from this, if you want to invest to save income tax, then you can invest in the Sukanya Yojana. It gives the benefit of tax exemption. So, choose the right plan keeping in mind your financial situation and goals.