Sukanya Samriddhi Yojana vs Children Mutual Funds

Role of parents in the girl child’s education

Looking for the best investment plans for your daughter? You can choose to go with the Sukanya Sammriddhi Scheme for maximum benefit. However, there are other options that you can analyze and decide if they are worth it. There are children’s mutual funds that let you invest in the name of your child. You can use the gains from these mutual funds to fund your daughter’s higher education and marriage.

Take a look at the benefits provided by Children’s Mutual Funds.

  • Your daughter can fulfill her ambitions without having to sacrifice them due to financial restrictions.
  • The high lock-in period helps you remain disciplined in your investment plans. The returns from these mutual funds can be gained after the girl turns 18.
  • Because the investment will be for the betterment of your child, you will be very cautious with investing. You’ll evaluate the performance of various mutual funds. This will make you a better investor.
  • You can categorize your investments and choose a goal for your daughter with each mutual fund. That way you can help your daughter’s goals for schooling, healthcare, higher education, and marriage.
  • If you choose a debt-based scheme for your child’s mutual fund, you can get tax benefits on investment. This makes it a good investment for long-term benefits.

Sukanya Samriddhi Yojana or Children Mutual Funds – Which is better? Both SSY and Children Mutual Funds have their own advantages. SSY is a government-supported scheme. It offers tax benefits and high returns without any risk factor. On the other hand, Child Mutual Fund schemes offer high returns but with high risk. If you are comfortable with the risk factor in Children Mutual Fund schemes, you should definitely go for it. However, it is advisable to analyze your risk tolerance before investing in any high-risk mutual funds.

When you have analyzed the options, you can go forward and make investments in SSY or Children Mutual Funds. You can also diversify your investment and go with both of them. If you feel that investing is not your forte and you do not want to get engaged in it, you can opt for SSY.

If you have made the decision to invest in SSY, or if you are wondering about the returns and the time frame of investment, you can use our calculator which shows you the estimated maturity amount at the end of the investment period.
In our opinion, there is hardly any scheme which is as good as the Sukanya Samriddhi Scheme. However, it is your decision to invest in the right place and give your daughter the best of the best.