5 Best Girl Child Investment Plans 2023

Being a parent is an important responsibility. At different times in your children’s lives, you must ensure optimal practices to teach them the right path of growth and development. Making the right financial plans is also crucial for them to achieve all their financial goals. If you have a little girl, the commitment is even more important. Investing in appropriate financial aid options becomes crucial to achieving your goals. Read on to learn about the top five child investment programs in India.

1. Sukanya Samriddhi Yojana(SSY)

The Girl child name must be used while opening the account. The smallest and largest amount can be invested between 250 and 1,50,000 per year. Parents can pay an annual fee.
The annual compound interest rate varies between 7% and 8%. If a girl child gets married after 18 years or 21 years, the policy becomes mature (whichever is earlier).

2 . Children Gift Mutual Fund

This is a type of mutual fund that aims to help children achieve various milestones in life such as marriage, higher education, etc. The mutual fund program is divided into hybrid funds that are debt and equity oriented. If you choose a hybrid debt fund, you have more than 60 percent exposure to equity investments, and if you choose a hybrid debt fund, you have more than 60 percent exposure to debt investments.

3 . Unit Linked Insurance Plan

Another savings option that helps secure their future and allows them to reach their financial goals on time is child insurance. Whole life insurance plans like ULIP can offer both life insurance and market linked benefits at maturity. To offer life insurance and invest in financial securities to improve your chances of getting rich, the insurer uses the premium of ULIP plans.
You can invest in your daughter’s ULIP based on your risk tolerance.

4 . National Savings Certificate (NSC)

This is a type of government-backed financial investment that can be initiated on behalf of a minor child. The annual interest rate is 6.8 percent, but this can vary. The minimum required investment is USD 1000 and a 5-year lock-in is required. It is a safe investment option for the cautious investor. Under Section 80C of the Income Tax Act, 1961, a maximum tax deduction of Rs 1,50,000 can be made on investment in NSC.

5. Post Office Term Deposit

The Indian Department of Posts offers various savings plans to help Indians achieve their financial goals. A girl child can use the post office term deposit as an investment to save money and achieve various financial goals, including further education, marriage and more. Either a parent or guardian can open an account in the name of a minor child. The maturity period varies from one to five years. The interest rate can vary from 5 percent to 7 percent.