Which Is The Best Child Plan In India For My Daughter?

As a parent, you're concerned about providing a financially secure yet secure future for your small, adored daughter. You can invest in your daughter's future in a variety of ways. Making the right investment decision before investing in your child's future has a significant impact on your daughter's financial security. You must exercise extreme caution when selecting a plan or investment instrument, and you must select one that is both safe and effective. Before investing in your child, you must consider all of your financial factors, the expectations of the child, and the flexibility of your financial circumstances.

Best Child Investment Plan For Daughter in India 

This article will teach you about some of the best investment plans for your female child in India, as well as their advantages.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana SSY was launched in 2015 as part of Indian Prime Minister Narendra Modi's "Beti Bachao Beti Padhao" initiative. The primary goal of the scheme is to create a financial reserve for a child's future.

Features of the Sukanya Samriddhi Yojana (SSY)

Here are some of the SSY Scheme's best features:

• This project was launched by the Indian government specifically for women.
• Females under the age of ten can register an account with the help of their parents or guardians.
• The policy will be in effect until the child (female) reaches the age of 18 or 21 and marries. (whichever occurs first)
• The annual compounding interest rate is 7.6 percent.
• For income tax exemption, Section 80C of the Income Tax Act is used.
• The maximum annual contribution ranges between Rs.250 and Rs.1,50,000 lakh.
• The account is only in the name of the female child.

PPF ( Public Provident Fund)

The Public Provident Fund, which has a term of 15 years, is a great investment option for your child. Parents can use this long-term investment strategy to help their children, whether boys or girls, build a solid financial foundation. Depending on the child's needs, the money saved in the PPF can be used for things like marriage, schooling, and so on.

Characteristics of the Public Provident Fund

The PPF includes the following features:

• It pays off handsomely in the long run.
• Anyone can open a PPF account, and minors can even open accounts on their behalf.
• There is a 15-year lock-in period.
• A minimum of Rs.500 must be contributed each year.
• The maximum amount that can be invested each year is Rs.150,000.
• Section 80C of the Income Tax Act allows for a maximum tax benefit of Rs.1,50,000.
• The annual rate of interest is 7.1 percent.

LIC Kanyadan Policy 

Kanyadan Policy of the LIC It is important to note that the Life Insurance Corporation of India's LIC Kanyadan Policy no longer exists. It is a modified version of the LIC Jeevan Lakshya strategy that emphasises girl protection. This savings and protection plan, with low premiums, provides an excellent financial corpus for your female child's future.

Benefits of LIC Kanyadan Insurance

The following features distinguish the LIC Kanyadan policy:

• The financial security of a girl child
• The policyholder receives a lump-sum maturity benefit.
• In the event of the policyholder's untimely death, the premium is waived.
• In the event of the policyholder's untimely death, a sum of Rs.10 lakhs is deposited immediately.
• Every year until the maturity date, Rs.50,000 is paid.
• When the insurance term expires, the maturity money is deposited.

Conclusion

It is critical to be financially prepared for your child's needs. Many parents believe they are prepared to face life's challenges and have planned for everything; however, unexpected events occur, and the money they intended to save and grow for their female child is insufficient. It is recommended that you invest in safe and effective financial instruments to avoid such situations. Every plan and insurance policy has advantages and enticing features. Making the final decision is up to you and your child's needs. Before investing your hard-earned money in any investment plan, it is critical that you understand all of your options.

Also read- How To Financially Secure Your Child's Future With A Child Life Insurance Plans?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.