Every parent wants to secure the future of the child. They want them to have a future with comfort, financial freedom, etc. But they don’t give a thought about planning or researching for it early. Parents are accountable for what type of life their child is going to have. So, it is essential for them to build a strong financial foundation for them to have a thriving future.
Let’s Look at the 5 Major Investment Types Exclusively Designed for Girl Child
1. Sukanya Samridhi Yojana or SSY
The government in India has a special plan to help girls. You just need to open an account in the girl’s name, and parents can put in money every year, anywhere from ₹250 to ₹1,50,000. Easy!
In this plan, the interest grows between 7% and 8% each year. The policy matures when the girl gets married after 18 or turns 21, whichever comes first. Families can invest in up to 2 SSY accounts for tax savings*. Just a heads up, the interest rate might change, so it’s smart to double-check before starting the account and during the policy.
2. Children Gift Mutual Fund
This money plan is all about helping kids for big moments, like weddings or college. There are two kinds: one where more than 60% goes into exciting stuff like stocks or Equity realm, and the other where more than 60% sticks to safer things like loans or debts. Just pick the one that feels right for your child’s adventure!
3. Unit Linked Insurance Plan
Child insurance is like a special piggy bank that helps keep their future safe. One cool option is the ULIP plan—it gives both life protection and some extra money when it’s time. The insurance folks use the money you put in to give coverage and make smart investments for more possibilities. It’s like having a money wizard for your child’s future!
4. National Savings Certificate (NSC)
This is like a special savings plan from the government, just for kids. You can start with ₹1000, and you have to keep it for 5 years. It’s a safe way to save, and if you use it for taxes*, you can save up to ₹1,50,000. Easy peasy!
5. Post Office Term Deposit
The India Post Department has a bunch of savings plans for people in India. One of them is the post office term deposit, which is like a special savings jar for a girl. Parents or guardians can open it in her name, and it lasts from 1 to 5 years. It’s an easy way to save up for things like school or a big celebration!