The Sukanya Samriddhi Yojana, a division of the Beti Bachao Beti Padhao Yojana, aims at providing investment options in the form of a savings account for the parents of a girl child below the age of 10 years. Parents or legal guardians can open such accounts to save for the marriage and education of their girl child.
Account under the Sukanya Samriddhi Yojana scheme can be regulated by the parents till the girl child reaches the age of 18, and it should be operated till the girl child reaches 21 years of age. The annual minimum and maximum amount that you can deposit are Rs. 250 and Rs. 1.5 Lakh respectively. However, only one account is allowed per girl child; a family can opt for a maximum of 2 accounts for their children.
However, there are several other investment options to ensure your child has a secure future. These often offer better, or similar returns to the Sukanya Samriddhi Yojana policy, making them an attractive alternative for individuals who cannot enrol in this government aided scheme. Let’s take a look at some of them.
- Equity mutual funds
You can invest in equity mutual funds if you have a high risk appetite and hold proper knowledge of the fluctuating market. Securities and Exchange Board of India, also known as SEBI, manages such funds. Under this scheme, 65% of the funds are required to be invested in equity-related securities or equity, and the remaining 35% is to be investment in money market or debts. The returns will depend on the fluctuations of the market, and hence the amount may vary.
Equity mutual funds offer some of the attractive returns amongst the alternative options. It is better suitable for investors who need to boost their investment by a significant margin within a short time frame.
Alternatively, you can invest in fixed deposits which provide you with an assured return. You also get access to the FD interest rate calculator with which you can estimate your returns well in advance.
- Debt mutual funds
Under debt mutual funds, you make investments under fixed-interest securities such as corporate bonds, treasury bills, Government securities, etc. It is accepted as one of the best saving schemes in India for various risk profiles. It is also a saving instrument that offers attractive return than Sukanya Samriddhi Yojna in 2019, making it an ideal wealth builder.
- National Pension schemes
The National Pension Scheme, also known as NPS, are investments customised to save for your retirement life. It can be ideal for seniors who act as legal guardians of a girl child. You get to invest your funds in bonds, investment alternatives (as per your preference), and equity and Government securities. It offers greater return and additional tax benefits.
You get to enjoy two options under this scheme, such as active and auto. Under the active option you get to invest in assets as per your choice while under auto option your funds get invested in various assets automatically. Your funds are locked under this scheme gets locked till you attain 60 years of age, until it matures. This scheme is considered as one of the best investment schemes that you should invest in to plan your post-retirement life.
- Fixed deposits
The investments made under fixed deposits are assured and do not depend on the fluctuations in the market. Fixed deposit schemes are secured investment options, substantiated further by CRISIL and ICRA ratings. You also get access to Fixed Deposit (FD) interest rate calculator using which you can determine your returns in advance. You can open your account with deposits with a minimum amount of Rs. 25,000. You also get to enjoy auto renewal facility and online application process.
You can invest in fixed deposit from NBFCs like Bajaj Finance at a competitive interest rate and other beneficial terms. The NBFC also offers flexible tenor, and you can invest for 12 to 60 months.
Alternative to the Sukanya Samriddhi Yojana scheme, you can invest in any of these other schemes to secure the future of your girl child.
