Investing in a better future for your children is an important step. It is necessary to make the right investment at the right time to meet their education, marriage, or other needs. Many great investment schemes in India can meet this need of yours.
These schemes not only provide security but also provide great growth opportunities. Today we will tell you in detail about some of the best investment options, by investing in which you can financially secure the future of your children. So let’s know about these great schemes.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a savings scheme run by the Government of India that aims to secure the future of daughters. This government savings scheme provides guaranteed returns. Parents or legal guardians can open an account for a girl child below the age of ten. It matures after 21 years from the date of opening the account or when the girl gets married after the age of 18.
Daughters are being given an attractive interest of 8.2% per annum on this government scheme. In this scheme, you can invest a minimum of ₹250 to a maximum of ₹1.5 lakh every financial year. The scheme also offers tax benefits under Section 80C of the Income Tax Act.
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Public Provident Fund
The Public Provident Fund (PPF) is a long-term investment scheme of the Government of India. It is currently offering an attractive interest rate of 7.1%. The interest rate is revised every quarter, and the interest received on this scheme is tax-free.
Investments made in PPF are also eligible for tax deduction under Section 80C. The lock-in period of this scheme is 15 years, making it a good option for long-term goals such as higher education of children.
National Savings Certificate
The National Savings Certificate (NSC) is a fixed-income investment scheme of the Government of India. This certificate is a good investment option for those who want security as well as tax benefits. It has a maturity period of five years. The government keeps revising the interest rate on it from time to time. You can buy it from the post office.
One can start investing in NSC with a minimum of ₹1000 and there is no maximum limit on investment. The interest earned on this certificate is reinvested, and the amount invested in NSC is eligible for tax deduction under Section 80C of the Income Tax Act. Given all these benefits, NSC can be a good means of saving money for your child’s education.
Fixed Deposits
Fixed deposits (FDs) are a traditional way of investing that offers assured returns over a fixed period. While its interest rates may be lower than other investment options, this way of investing is quite popular among investors who want to earn fixed returns on the amount invested and do not want to take any risk. Some banks also offer special FDs for children, which can be used to meet education expenses.
Mutual Fund SIP
Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. It is a way of investing that promotes financial discipline and also helps in avoiding market fluctuations. It is a good investment option to understand the power of compounding in the long term. Through SIP, you can convert even small savings into a large fund, thereby creating a strong financial foundation for your children’s future.
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