Parents always want to secure their child’s future. One smart way to do this is by investing regularly. In India, there are many good investment plans that help save money safely and grow it over time. Let’s understand some of the popular ones:
Sukanya Samriddhi Yojana (SSY)
This is a special plan for girl children. You can open an account if your daughter is under 10 years old.
- The account matures when she turns 21 or gets married after 18.
- You get 8.2 percent interest right now.
- You can invest between Rs 250 and Rs 1.5 lakh in a year.
- Interest is compounded, which means your money grows faster.
- You also get tax benefits under Section 80C.
Best for: Long-term savings for a daughter’s education or marriage.
Public Provident Fund (PPF)
- PPF is a trusted government saving scheme.
- Current interest rate is 7.1 percent.
- It has a lock-in period of 15 years.
- Interest earned is completely tax-free.
- You also get tax benefits under Section 80C.
Best for: Building a big fund over time for education or other goals.
National Savings Certificate (NSC)
- NSC is a safe investment option.
- It matures in 5 years.
- Interest rate keeps changing but is usually better than FDs.
- You get tax benefit under 80C.
- Interest is reinvested, so your savings grow.
Best for: Medium-term savings with low risk.
Unit-Linked Insurance Plans (ULIPs)
- ULIPs give both insurance and investment.
- A part of the premium gives life cover.
- The rest is invested in shares or bonds.
- Lock-in period is 5 years.
- Returns depend on the market.
- You also get tax benefits under 80C.
Best for: Parents who want insurance + higher returns, and can take some risk.
Mutual Fund SIPs (Systematic Investment Plans)
- SIPs are a simple way to invest in mutual funds regularly.
- You can start with small amounts every month.
- Long-term SIPs give good returns with compounding.
- It has some risk as it depends on the market.
Best for: Long-term wealth creation for education, higher studies, etc.
- Fixed Deposits (FDs)
- FDs are very safe and give fixed returns.
- Choose how long you want to invest – 1 year, 5 years or more.
- Interest is lower than other options but guaranteed.
- Good for people who want no risk at all.
Best for: Safe savings with guaranteed income.
What Should You Do?
Compare the risk, return, and lock-in period of each scheme.
Mix different investments – it helps reduce risk and grow money better.
Think about your child’s education, health, marriage – and plan accordingly.
