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How To Secure A Girl Child’s Future?

Published On Jul 28, 2021

The future of their children is of paramount significance to parents. They are willing to give up a lot for the pleasure of their children. Higher education and marriage are two big costs that a parent of a girl kid would have to endure. This necessitates long-term planning because of the high expense.

Planning for a child's future is challenging. Most individuals feel they have adequately planned, yet their funds are insufficient when the time comes. As a result, while planning, it's essential to make the correct investment selections at the right time. On the market, there are a number of kid plan investment options, but you should pick the ones that best suit your needs.

Top 5 Investments Options For Girl Child’s Future

You can consider the following investment choices - 

  • SIP

For long-term goals such as child education, SIP investments in equities mutual funds might be considered. The lengthier time horizon usually spans from 7 to 15 years or more, with a minimum investment amount of Rs 500 with SIP. A monthly investment of Rs 6,000 in equity mutual funds for 18 years (from the time the kid is born until he or she enters higher education) may yield around Rs 45.9 lakhs assuming 12% annual returns, which will be worth around Rs 23.4 lakhs at a 6% annual inflation rate.

With the power of compounding, returns from equities mutual funds are more likely to surpass the inflation rate of 5-6 percent every year when invested under a systematic investment plan (SIP). Long-term investing in equity mutual funds through SIP is thus one of the greatest alternatives for important goals such as a child's further education or marriage.

  • Sukanya Samriddhi Scheme/Yojana

The SSY initiative was established to encourage females to save. This plan can be started for a girl kid at any point between birth and the age of ten. The yearly investment minimum and maximum amounts are fixed at Rs 1,000 and Rs 1.5 lakh, respectively, for 15 years.

Under Section 80C, SSY also has an EEE (exempt, exempt, exempt) tax characteristic. The present interest rate is 8.5 percent, but it might change at any time. An SSY account has a 21-year maturity term. After the kid reaches the age of 18, partial withdrawals are also possible. The program is also one of the best ways for a female kid to achieve her long-term goals.

  • Public Provident Fund (PPF)

PPF investments include the EEE (exempt, exempt, exempt) tax characteristic, which allows for tax-deduction for the investment, no tax on the profits received via accumulation, and finally, no tax on the entire amount taken at the end.

Because the PPF investment has a 15-year duration, it may be used for long-term investments for the child, such as further education or marriage. The money is placed for a set length of time in order to receive interest on the savings, and the current PPF interest rate is 7.9%.

  • Debt Funds

When opposed to equities mutual funds, debt funds have a lower risk profile. The money is placed in various deposits or bonds, and interest is earned by lending the funds and earning interest. Debt mutual funds are recommended for a child's recurrent costs, such as school tuition since they provide quick liquidity.

Investments in short-term debt funds are more flexible, allowing for withdrawals or investments as needed, and may provide up to 7% annual returns.

  • Term Insurance Cover

Experts advise that when choosing a term insurance policy for a kid, it is best to choose one that covers all key costs such as schooling, livelihood, and marriage. A pure term insurance plan protects your child in the event that one or both parents die. This is a risk cover that lessens the financial burden on a family or a kid if the breadwinner of the family passes away.


In conclusion, I would like to highlight the fact that savings are necessary. One must start planning the future of their children so that they don’t face any trouble further. The most important thing to remember is that the current situation can and will turn around in the coming few months. So invest wisely and save for your child’s future.

Also read 

How Can I Invest On Behalf Of A Child?

All About LIC’s New Children's Money Back Plan

Disclaimer: This article is issued in the general public interest and 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.        

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