Sukanya Samriddhi Yojana vs Mutual Fund: The government administers the Sukanya Samriddhi Scheme (20224) for daughters’ future. There is an 8.2 percent interest rate available in this plan. An annual maximum of Rs 1.5 lakh and a minimum of Rs 250 can be placed in this scheme.
Sukanya Samriddhi Scheme (SSY)
The system requires parents to deposit funds in their daughter’s name for 15 consecutive years, with a 21-year maturity date. This system allows parents of daughters under the age of ten to invest in and add a substantial amount of money. For parents who trust a plan with secure and assured returns, this one is excellent.
However, if you’re willing to take a little chance, you can also use SIP to invest in mutual funds for your daughter. You cannot guarantee security with it because it is market linked, but you can deposit a sizable amount of money through it in 21 years. Let us tell you the return on your monthly Rs 5,000 SSY deposit and the amount you will receive if you start a SIP with the same amount.
SSY Investment Scenario
In 15 years, if you contribute Rs 5,000 per month to the Sukanya Samriddhi Yojana, you will have invested Rs 9,00,000. Parents won’t have to contribute to this system after then, but the money will remain locked. The plan will reach maturity in 21 years. Looking at an interest rate of 8.2 percent, this scheme will pay out Rs 18,71,031 in interest, and at maturity, Rs 27,71,031 will be accessible.
SIP Investment Scenario
In fifteen years, if you deposit Rs 5,000 a month in mutual funds through SIP, you will have invested an additional Rs 9,00,000 in this account. It is estimated that the average return on SIP is 12 percent. In this case, if you calculate using a 12 percent rate, you will receive interest on your investment of Rs 9 lakh for 15 years, or Rs 25,22,880 on Sukanya Samriddhi, if you withdraw the money within that time frame. The returns have not changed much in the last 21 years.
Extended SIP Investment
At a rate of 12 percent, you will receive Rs 29,06,891 if you continue this investment for an additional year, or 16 years instead of 15. This is significantly greater than the earnings from the Sukanya Samriddhi Yojana. The maximum amount you can receive through SIP if you keep making this investment for 21 years straight is Rs 56,93,371. On the other hand, your entire investment after 21 years will be Rs 12,60,000. That indicates that the interest on your investment would only be Rs 44,33,371.