7 Best Investment Options for Your Girl Child

The days when spending on a boy’s future was seen as an investment, but that of a girl was looked down on as a burden, now merely exist.

With women now being more financially independent than ever, we are witnessing the emergence of equality. No doubt, there is still a long way to go, but the progress so far needs to be acknowledged.

Definitely, major government policies have played a central role in bringing about this change. Luckily, in India, with schemes like ‘Beti Bachao, Beti Padhao’, the conditions of female foeticide-struck states (like Haryana) have improved along with the sex ratio.

To secure your daughter’s future, you can explore good investment options for your girl child. In case you are wondering why to not just set up something with your regular investment plans or why a girl-child centered scheme would be more helpful, here’s why:
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• Investment plans for girl child always generate much higher returns than a regular investment scheme. 
• Investment options for girl child are tax saving as they are often exempted from taxes.
• Terms and conditions are pretty straightforward, and these plans are super easy to handle. 

Explore different ways to secure your daughter’s future with these investment options for your girl child.
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1) Sukanya Samriddhi Yojana (SSY)

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This investment plan for girl child in India was launched under the banner of ‘Beti Bachao, Beti Padhao’ by the government of India and is one of the

best girl child investment plan in post office

Currently, it is available at 7.6% interest rate.

For a single family, the SSY account can be opened for at max two girl childs. The maturity is after 21 years.

This scheme also provides amazing tax benefits, and with just ₹250, you can start an SSY account.

The main aim behind this scheme is to support the higher education of the girl child.

In case your child has some special needs, the amounts can be prematurely withdrawn. Also, you deposit in this for 15 years, and while the maturity is in 21 years, you still continue to earn the interest. 

Benefits - 

1. The SSY account offers the highest tax deduction benefits and has the EEE status, ensuring optimal returns.
2. Contributions up to Rs 1.5 lakh per year in this account are eligible for tax deduction under section 80C of the Income Tax Act.
3. The amount received upon maturity of the account is exempt from taxation.

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2) Children Gift Mutual Fund

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The next best investment option for girl child is the Children Gift Mutual Funds. Under this scheme, you get to invest in a blend of equity and debt limits.

There are lock-in periods that make the returns pretty high under this scheme.

Though there is no option for a premature withdrawal in this scheme, it instead comes with a restriction period of 18 years - long enough for you to plan your girl child’s future steps. 

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Benefits - 

1. Investing in this plan helps you build long-term financial stability for your daughter
2. Monitoring funds under this policy is hassle-free and straightforward.
3. The plan remains tax-free until redemption.

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3) National Saving Certificate (NSC) 

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The benefits of this low-risk investment scheme can be availed across all post offices in India. Similar to SSY, this investment  option for your girl child is currently available at 6.8% interest rate.

The main aim behind this scheme is to provide for a fixed income and definite returns.

The maturity period of NSC is 5 years.

Benefits -

1. The plan provides a superior fixed return on investment in comparison to fixed deposits (FDs).
2. Enjoy tax benefits of up to 1.5 lakh under section 80C of the Income Tax Act.
3. Accessible with a minimal initial investment of only 1000

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4)Post-Office Term Deposit (POTD)

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This scheme is quite similar to the bank FDs in the sense that under this scheme, you save money for a certain period of time and earn definite returns with low risks.

Basically, on maturity, you get to have the invested amount along with the interest earned.

With guaranteed returns, this small savings scheme is also low maintenance. Plus, the initial beginning amount is quite feasible for every Indian citizen. 

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Benefits - 

1. POTD offers attractive interest rates, ensuring higher returns on the invested amount
2. The invested amount is not subject to market fluctuations, offering stability and peace of mind.
3. Contributions up to Rs 1.5 lakh per year in this account are eligible for tax deduction under section 80C of the Income Tax Act.

5)Public Provident Fund

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Investing in the Public Provident Fund (PPF) is an excellent choice for securing the financial future of a girl child. It provides a safe and reliable investment avenue with attractive returns.

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PPF offers a long-term investment opportunity with a tenure of 15 years, allowing ample time for the investment to grow. The contributions made to PPF accounts earn compound interest, which significantly enhances the overall returns. This compounding effect makes PPF a powerful wealth accumulation tool for the girl child's future financial needs.

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Benefits - 

1. Tax deductions available on contributions made under section 80C of the Income Tax Act
2. Flexible contribution amounts, starting from as low as Rs 100.
3. Partial withdrawal and loan facilities are available in case of emergencies or specific financial needs.

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6) Digital Gold

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If you are contemplating how to invest for your newborn baby girl, investing in digital gold is an attractive option. It enables you to save for her education or marriage by taking advantage of gold's historical ability to outperform inflation. 

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Gold has been a popular investment choice in India for generations, often purchased for a girl's marriage. The availability of digital gold makes it even more convenient, as it can be easily converted into various jewelry designs without concerns about patterns becoming outdated.

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Benefits - 

1. Digital gold provides a secure investment option as it eliminates the risk of physical theft associated with owning and storing physical gold.
2. Investing in digital gold allows the potential for appreciation in value over time
3. Digital gold offers the convenience of easy accessibility and management, allowing investors to buy, sell, and convert their holdings conveniently through online platforms or mobile applications

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7) Fixed Deposits(FDs)

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Fixed Deposit (FD) is a secure and reliable investment option for girl child. It provides a stable avenue for investment with predictable returns and minimal risk.

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However, it is important to note that FDs come with certain limitations. One such limitation is that once the FD is initiated, the invested amount cannot be withdrawn before the maturity date without incurring penalties or losing out on the interest

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Benefits - 

1. FDs provide flexibility in terms of tenure options, allowing parents to choose the duration that aligns with their financial goals.
2. FDs earn fixed rate of  interest. 

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Scholarship Schemes for Girl Child

CBSE Udaan Scheme

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This scheme for girl child in India is the result of the collaboration between CBSE and the HRD (Human Resource Development) Ministry.

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For girls interested in engineering or any other STEM field, this scheme assists in getting enrolled in prominent colleges (engineering and technical studies) across the country.

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‍If your girl child has secured 70% or higher (with minimum 80% or a CGPA or 8 or 9 specifically in science and maths) in 10th standard, then she is eligible for this scheme.

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This plan aims to support girls in the 11th and 12th standard by offering free and easily accessible course materials and online resources. Additionally, to enhance their college preparation, there is a provision for virtual weekend courses.

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The scheme also includes career opportunities for deserving female candidates, in addition to study assistance. To address any doubts or queries, a toll-free clarification number is provided

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National Scheme of Incentive for the Girls of Secondary Education

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This scheme was launched under a wing of the HRD ministry and targets the girls of deprived classes who wish to pursue secondary education.

After enrolling, once the girl child completes her 10th standard, she receives a fixed sum of ₹3000 which is enough to complete their secondary education.

At the time of application, the child must have completed 8th standard and must be enrolled in 9th standard.

The age of your girl child should not be more than 16 years. To avail of these benefits, she must be enrolled in a government aided school.

Upon reaching the age of 18 years, the girl child can withdraw the amount along with interest to continue further education. 

Balika Samridhi Yojana

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This is a one-of-its-kind scholarship scheme that provides financial aid to girls from economically deprived families and their families, too.

The main aim of this scheme is to raise the social status of girls and increase the age of marriage while also increasing the years of education.

Available in both rural and urban areas, this scheme provides a cash reward to the mother of the girl child at the time of birth and further, when the child starts going school, she receives an amount between INR 300 & INR 1000 as the main annual scholarship.

To know more about this scheme, you should definitely surf through the website of the Ministry of Women & Child Development.
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Bottomline

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There are tons of insurance companies, investment plans, banks, etc. that are willing to help you secure the life of your girl child.

All you need to do is find the best one suited to your child’s needs.

For a better future, education is a must, and therefore, when you are searching for an investment plan, make sure to focus on educating your girl child. 

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