‘SSY or SIP’, don’t know where to invest money for your daughter’s future? Eliminate all confusion regarding return calculations
Business News Desk,With the birth of a child, parents start worrying about his/her future. For this reason, people start investing in various schemes as soon as the child is born so that they can collect a good amount of money by the time he grows up. If you are the father of a daughter, then the name of Sukanya Samriddhi Yojana will definitely be in your mind because the government has started this scheme especially for daughters. In this scheme, interest is being given at the rate of 8.2 percent. If your daughter’s age is less than 10 years, then you can invest in this scheme in her name.
At the same time, SIP is also considered a very good option for making money fast. Through this you can invest in Mutual Fund in the name of your daughter. However, you should know that SSY is a scheme giving guaranteed returns, but Mutual Fund is a market linked scheme, in which returns are not guaranteed. But experts consider this scheme very good for making money in the long term because its average returns are also considered better than all the schemes. Which is better to invest for daughter, SIP or SSY? If you are confused thinking this, then understand the returns of both the schemes here, this will make it much easier for you to take the decision.
SSY return on monthly deposit of Rs 5000
Investment in SSY is made for 15 years, after which the amount is kept locked. The scheme matures after 21 years, that is, you get the maturity amount after 21 years. In such a situation, if you invest Rs 5000 every month in Sukanya Samriddhi Yojana, then Rs 60,000 will be invested in a year and Rs 9,00,000 in 15 years. If calculated according to the current interest rate, then according to 8.2 percent interest rate, total interest will be Rs 18,71,031 in 21 years and after 21 years, the maturity amount will be Rs 27,71,031.
How much return from monthly SIP of Rs 5000
Whereas if you invest Rs 5000 every month in mutual funds through SIP, then in 15 years you will invest Rs 9,00,000 here also. The average return on SIP is considered to be 12 percent. Sometimes one gets more than this. In such a situation, if the calculation is done according to 12 percent, then in 15 years you will get interest of Rs 16,22,880 on investment of Rs 9 lakh. If you withdraw this amount within 15 years, you will get Rs 25,22,880. This amount is close to the returns on Sukanya Samriddhi in 21 years.
Whereas if you continue this investment for 1 more year i.e. invest for 16 years instead of 15, then at the rate of 12 percent you will get Rs 29,06,891, which is much more than the returns of Sukanya Samriddhi Yojana. If you continue this investment continuously for 21 years, then you can get up to Rs 56,93,371 through SIP at 12 percent return, while your total investment will be Rs 12,60,000. That means you will get only Rs 44,33,371 as interest on investment.
SSY Vs SIP
One advantage of SSY is that you can avail tax benefits in three ways. This scheme comes in EEE category. In this, there is no tax on the amount deposited every year, apart from this, there is no tax on the interest earned every year and the entire amount received at the time of maturity is also tax free i.e. investment, interest/return and maturity are tax free. There is savings. But you do not get tax exemption in SIP.
Apart from this, the returns in Sukanya Samriddhi are fixed, but there are no guaranteed returns in SIP because it is market linked. However, experts consider it a better investment option in the long term. In SIP, one gets the benefit of rupee cost averaging in the long term, in such a situation the risk gets reduced significantly. The average return in SIP is considered to be 12 percent. This is much better than Sukanya. Sometimes even more interest is available.
– You can invest in Sukanya Samriddhi Yojana only if your daughter’s age is less than 10 years. But age has nothing to do with SIP, you can also invest in the name of your daughter.
Of course, you have to invest in SIP for 15 years, but after that your money remains locked for many years. In such a situation you cannot use it. SIP is flexible. You can start it anytime and stop it anytime.
