6 Best Investment Plans To Secure A Bright Future For Your Girl Child: Money Matters

Investing in a girl child’s future is a powerful way to ensure your daughter has financial stability and opportunities as she grows. Whether you’re a parent or guardian looking to secure her educational aspirations, health, or financial independence, choosing the right investment plan is crucial. With various options available, it’s important to select a plan that aligns with her future needs and your financial goals. Here’s a guide to some of the best investment plans for your girl child that you must know about:

6 Best Investment Plans For Girl Child

1. Sukanya Samriddhi Yojna (SSY)

“Sukanya Samriddhi Yojna is a small deposit scheme for the girl child, launched as a part of the 'Beti Bachao Beti Padhao' campaign”, states the National Portal of India. Introduced by the Indian government, this scheme is specifically designed to benefit the girl child. This scheme offers a high interest rate compared to other savings plans and provides tax benefits under Section 80C of the Income Tax Act. The funds can be used for her higher education or marriage expenses. The SSY also offers a partial withdrawal facility for educational purposes, making it a flexible and good option.

2. Public Provident Fund (PPF)

The Public Provident Fund is a long-term savings scheme that offers attractive interest rates and tax benefits. PPF accounts can be opened by anyone, including for a girl child, and have a tenure of 15 years, which can be extended in blocks of 5 years. Contributions are eligible for tax deductions under Section 80C, and the interest earned is tax-free. The PPF is ideal for building a secure financial future due to its guaranteed returns and risk-free nature.

3. National Scheme of Incentive for the Girls of Secondary Education

The National Scheme of Incentive to Girls for Secondary Education (NSIGSE) is a government initiative in India that aims to promote secondary education for girls and reduce dropout rates. According to the Ministry of Education, Government of India, “The Scheme covers:

i) All SC/ST girls who pass class VIII and

ii) Girls, who pass the class VIII examination from Kastrurba Gandhi Balika Vidyalayas (irrespective of whether they belong to Scheduled Castes or Tribes) and enroll for class IX in State/UT Government, Government-aided or local body schools.

iii) Girls should be below 16 years of age ( as of 31st March) on joining class IX

iv) Married girls, girls studying in private un-aided schools and enrolled in schools run by the Central Government like KVS, NVS, and CBS affiliated Schools are excluded.

A sum of Rs. 3,000/- is deposited in the name of eligible girls as a fixed deposit. The girls are entitled to withdraw the sum along with interest thereon on reaching 18 years of age and on passing the 10th class examination.”

4. Children’s Gift Mutual Funds

According to Cleartax, “The children’s gift funds are a type of mutual fund scheme. These funds are positioned at funding various life events of children such as higher education and marriage.” It is a perfect way for parents to invest in their girl child’s future needs, such as education, with the potential for tax benefits and long-term growth.

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5. Fixed Deposits (FDs)

Fixed Deposits are a low-risk investment option that provides a guaranteed return on investment. For a girl child, FDs can be a secure way to save and grow money over time. While the returns might be lower compared to other investment options, FDs offer safety and fixed interest rates, which can be beneficial for achieving specific financial goals, such as funding higher education or setting aside a corpus for future use.

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6. Gold Investment

Investing in gold can also be a good option for securing a girl child’s future. Gold can be bought in physical forms, such as coins and jewellery, or through financial instruments like Gold ETFs (Exchange Traded Funds) and Sovereign Gold Bonds. Gold is considered a hedge against inflation and can be a valuable asset for future financial security.

Note: Always consider consulting with a financial advisor to guide you with the investment strategy that best suits your specific goals.

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