Best Girl Child Investment Plans 2023: THESE are 5 Schemes to Consider in India
5 Best Investment Plans For Girl Child In India
Being a parent is a significant duty. At various times in your children's lives, you must ensure optimal practises to teach them the correct road to growth and development. Making the proper financial plans is also crucial in order to support them in achieving all of their financial objectives. If you have a girl child, commitment is even more important. And in order to fulfill goals, investing in the appropriate financial assistance alternatives becomes crucial. Continue reading to know about the top 5 child investing schemes in India.
Sukanya Samriddhi Yojana(SSY)
The girl child's name must be used while opening the account. Between 250 and 1,50,000 can be invested annually in the least and maximum amounts. The parents are able to pay the fee yearly.
The annual compound interest rate ranges from 7 percent to 8 percent. When a girl child marries after turning 18 or turns 21 years old, the policy becomes mature (whichever is early).
Children Gift Mutual Fund
It is a form of a mutual fund intended to help children achieve various life milestones like marriage, higher education, etc. The mutual fund programme is further divided into hybrid mutual funds that are debt- and equity-oriented. If you choose the hybrid equity mutual fund, you will have a greater than 60 percent exposure to equity investments, and if you choose the hybrid debt mutual fund, you will have a more than 60 percent exposure to debt investments.
Unit Linked Insurance Plan
Another alternative for saving that might assist protect their future and enable them to meet their financial goals on time is a kid insurance policy. Plans with comprehensive life insurance, like ULIPs, can offer both life coverage and market-linked profits when they mature. In order to provide life insurance and assist you in investing in financial securities to boost your chances of becoming wealthy, the insurer will use the premium for ULIP plans.
You can invest in a ULIP coverage for your girl child based on your risk tolerance.
National Savings Certificate(NSC)
It is a type of government-sponsored financial investment that may be started in a minor child's name. The annual interest rate is 6.8 percent, but it could vary. A 1000 USD minimum investment is required, and a 5-year lock-in period is required. For cautious investors, it is a secure investment choice. Under Section 80C of the Income Tax Act of 1961, an investment made in NSC qualifies for a tax deduction of up to 1,50,000 rupees.
Post Office Term Deposit
The India Post Department provides a variety of savings plans so that Indians can achieve their financial objectives. A girl child can use the post office term deposit as an investment to save money and reach a variety of financial objectives, including further education, marriage, and other things. The account can be opened in the name of a minor child by either the parent or the guardian. The maturation period varies from one to five years. The interest rate may range from 5 percent to 7 percent.