Traditionally, daughters have been given a cosier corner in the parents’ heart. Though earlier many families had given precedence to the male child, the scenario is now changing and parents need to plan aggressively for their daughter. On International Daughters’ Day, let’s have a look at a few investment avenues that offer long-term capital growth for the daughter.
Sukanya Samriddhi Yojana
As the name implies, Sukanya Samriddhi Yojana or SSY is designed for investment exclusively for the girl child. It can be opened at any time after girl child is born but not after she becomes 10. It matures 21 years – one has to invest for 15 years only from the opening of the account. Currently, it offers 8.2% interest, the highest by any sovereign-backed debt instrument.
A maximum of Rs 1.5 lakh can be invested in SSY per year. If one invests Rs 1.5 lakh a year, SSY will generate a total amount of Rs 71,82,119 after 21 years, the interest component being Rs 49,32,119 on a nominal investment of Rs 22.5 lakh.
NPS Vatsalya
This recently rolled-out scheme has triggered considerable interest on the first day itself. A PFRDA scheme stated that 9,705 minors were enrolled on the day of the launch.
The banks that are offering NPS Vatsalya are State Bank of India (SBI), ICICI Bank, Axis Bank, Canara Bank, Bank of Maharashtra and Central Bank of India.
However, the NPS Trust website has said that eNPS, the online platform, is the quickest way to open an NPS Vatsalya account and make contributions.
According to a projection offered by PIB Chandigarh if a parent begins to invest a modest Rs 10,000 a year in an NPS Vatsalya account, it would generate Rs 5 lakh (with a 10% return), when she turns 18. If she continues the investment as an adult, it would fetch her Rs 11.05 crore at the age of 60 (assuming 12.86% return).
MF SIP
The SIP in a mutual fund can easily accumulate a lump sum for your daughter. You could choose an equity-oriented fund after consulting an MF advisor. A high-performing fund can generate 15-20% growth.
If a fund generates 15%, investing Rs 10,000 a month in SIP from the first year can lead to a corpus of Rs 1,10,42,553 (Rs 1.10 crore) when she turns 18.
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