Child Investment Options
Introduction?
The best hope for one’s future are children. Have you ever thought about how this increasing costliness would have an impact on the future generation? We could never know of the future But we definitely think of making some smart investments for the secure future of the children isn’t it soo??
For having this Secure future for your Children the Government of India has launched many Programs where you could Invest some amount every time and Get a secure future for your child. But Confused amongst this which is the best plan you could opt for?
No problem here are some of the very famous and the programs with maximum outputs:
Sukanya Samriddhi Yojana (SSY) is a savings system introduced in 2015 as part of the government's Beti Bachao, Beti Padhao campaign. This strategy enables guardians to set up a savings account for their girl child at an accredited commercial bank or India Post branch.SSY accounts offer an 8.2% interest rate.
The Graph depicts the average age at which people open a Sukanya Samriddhi Yojana (SSY) account, along with the potential corpus amount at maturity for different ages. The x-axis represents the age at which the account is opened, ranging from “Newly Born” to 10 years old. The y-axis represents the corpus amount in lakhs of rupees.
2. Public Provident Fund (PPF):
PPF is another government-backed savings plan that has a 15-year lock-in period. It offers a fixed interest rate that is announced quarterly and is an excellent choice for developing a disciplined savings habit. PPF contributions qualify for a tax deduction under Section 80C, making them even more appealing. While the returns may not be the best, the safety and tax benefits provide a solid foundation for your child's future.
The x-axis shows years, ranging from 1996 to 2015. The y-axis on the left side shows the inflation rate as a percentage, while the y-axis on the right side shows the PPF interest rate as a percentage.
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The above PPF calculator shows how You could make profits by Investing through PPF.
3. Gold:
Gold has long been seen as an inflation hedge. You can invest in actual gold or gold ETFs. While gold prices fluctuate, it can be a useful diversifier in your child's investing portfolio.
4. Mutual Funds - Systematic Investment Plans (SIPs):
SIPs are a very fruitful investment alternative, particularly for investors who do not possess in-depth market knowledge. This are Periodic investments that will allow one to accumulate a reasonable corpus over time and hence derive a sense of financial security for the future. Tax efficiency on the returns ensures that today's investments are a backup for the future, providing a stable platform for wealth creation.
The above shows how one can Invest little amounts in SIP and get good returns out of it.
5. Child Unit Linked Insurance Plans :
ULIPs combine insurance coverage and investment opportunity. They provide a choice of fund options to pick from, allowing you to adjust the risk profile to your specific requirements. However, ULIPs have premium payment conditions and charges, which can reduce overall returns. Before making an investment, carefully review the policy terms and costs.
Conclusion?
Choosing the right investment plan depends on your specific goals and risk tolerance. For example, Sukanya Samriddhi Yojana offers a high interest rate and is specifically designed for girl children, while PPF provides a safe and tax-efficient option for long-term savings.
Don't be afraid to act! Contact us? to discuss your specific needs and goals. online investment calculator to see how much your money could grow over time. Most importantly, start investing today! Even small amounts invested regularly can make a big difference in your child's future.