Parents are increasingly recognizing the importance of investing in their daughters’ financial and educational futures. This article provides information on smart investment options that can be used to secure a child’s future.
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New Delhi: In India, there has long been prejudice against girls in terms of their access to education and financial stability. This is frequently a result of cultural considerations, such as the idea that girls will eventually be married off and their families will no longer be in charge of their financial security. This bias is, however, gradually beginning to shift. More and more parents have now started to understand that it is important to make financial and educational investments in their girl child’s future.
Here’s a list of five smart investment options you can use to secure the future of your child –
1. Sukanya Samriddhi Yojana
A government initiative called the Sukanya Samriddhi Scheme encourages parents to set money aside for their daughters. As long as your daughter is under the age of 10, the account can be opened at any post office. A maximum of 1.5 lakh rupees can be invested in this scheme each year, with minimal deposits of just 1,000 rupees.
The account has a 21-year maturity period starting on the day it was opened, and deposits can be made up until the girl child is 14 years old.
2. Children’s Gift Mutual Fund
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Mutual funds are specifically designed to raise money for children’s life events like higher education and marriage. These are mutual funds that are categorized as balanced or hybrid funds. Mutual funds for children’s gifts often have an 18-year lock-in period. Depending on the equity exposure, these funds are divided into hybrid-debt-oriented and hybrid-equity-oriented categories, as per Cleartax.
3. National Savings Certificates
It can be opened in the name of a minor child and is a government-sponsored financial investment program. The annual interest rate, which is 6.8%, could fluctuate. The lock-in duration is 5 years, and the minimum investment amount is $1,000. It is a secure investment choice for cautious investors. Moreover, under Section 80C of the Income Tax Act of 1961, an investment in NSC is eligible for a tax deduction of up to 1,50,000 rupees.
4. PPF Investments
Public Provident Fund, where the assets can be locked in for a period of 15 years, is a good option if you’re searching for a long-term investment strategy. The minimum annual investment amount is 1 Lakh, and the interest rate is 8.75%. Post offices and banks both offer PPF account opening services.
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5. Make Gold investments
When the markets are erratic and against equity, gold always serves as the ideal hedge. In the form of gold mutual funds, ETFs, or E-Gold, parents can invest in gold as a means of safe and secure investment.
