Best Investment Plans For Girl Child In India

As a parent, you're concerned about how to provide a financially secure yet safe future for your small, adored daughter. You may make a number of investments in your daughter's future. Making the right investment decision before investing in your child's future has a big impact on how financially secure your daughter's future will be.

You must choose a plan or investment instrument with considerable consideration and choose a safe and effective one. To provide the greatest of all benefits, you must analyze all of your financial factors, the expectations of the Child, and the flexibility of your financial circumstances before investing in your child.

Best Investment Options For Girl Children

In this piece, you will learn about some of the best investment plans for your female child in India, as well as their benefits.

1. Sukanya Samriddhi Yojana

SSY Scheme was introduced by Indian Prime Minister Narendra Modi in 2015 as part of his "Beti Bachao Beti Padhao" initiative. The scheme's main purpose is to develop a financial reserve for a child's future.

Sukanya Samriddhi Yojana's Features (SSY)

Here are some of the finest features of the (Sukanya Samriddhi Yojana)SSY Scheme:

• The Indian government launched this project specifically for women.
• For females under the age of 10, parents or guardians can register an account.
• The policy will remain in effect until the child (female) marries at the age of 18 or 21. (whichever comes first).
• The interest rate is 7.6% per year, compounded annually.
• Section 80C of the Income Tax Act is utilized for income tax exemption.
• The maximum yearly contribution ranges from Rs.250 to Rs.1,50,000 lakh.
• The account is only in the female child's name.

2. PPF ( Public Provident Fund)

The Public Provident Fund, which has a 15-year term, is an excellent investment option for your child. Parents may use this long-term investment plan to help their children, whether they are boys or girls, create a strong financial foundation. The money saved in the PPF(Public Provident Fund) can be used for things like marriage, schooling, and so on, depending on the needs of the child.

Public Provident Fund's Features 

The following features are included in the PPF:

• In the long term, it pays off handsomely.
• A PPF account can be opened in anyone's name, and minors can even start accounts on their behalf.
• A 15-year lock-in period applies.
• Each year, a minimum sum of Rs.500 must be contributed.
• Each year, the maximum amount that may be invested is Rs.1,50,000.
• A maximum tax advantage of Rs.1,50,000 is allowed under Section 80C of the Income Tax Act.
• The annual interest rate is 7.1 percent.

3. LIC Kanyadan Policy 

The LIC's Kanyadan Policy It's important to note that the LIC Kanyadan Policy, created by the Life Insurance Corporation of India, no longer exists. It's a tweaked version of the LIC Jeevan Lakshya strategy that prioritizes girl protection. This savings and protection plan, which has moderate premiums, provides an excellent financial corpus for your female child's financial future.

Features of the LIC Kanyadan insurance

The LIC Kanyadan policy has the following characteristics:

• A girl child's financial stability
• A lump-sum maturity benefit is paid to the policyholder.
• The premium is waived in the case of the policyholder's untimely death.
• The sum of Rs.10 lakhs is instantly deposited in the case of the policyholder's untimely death.
• Rs.50,000 is paid every year until the maturity date.
• The maturity money is only deposited when the insurance term has expired.

Conclusion

Being financially prepared for your child's needs is crucial. Many parents feel they are prepared to meet life's challenges and have planned for everything, but unexpected occurrences occur, and the money they intended to save and grow for their female Child is insufficient. To avoid such situations, it is advised that you invest in safe and effective financial instruments. All plans and insurance have benefits and tempting features. Making the ultimate decision is up to you and your child's requirements. It is vital to understand all of your alternatives before investing your hard-earned money in any investment plan.

Also read - What Is The Right Time For Investing In A Child Plan?

Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.