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SSY Vs SIP: Sukanya Samriddhi Yojana or SIP, which investment will be profitable?

Parents look for investment options with higher returns for their daughters’ education and marriage. At present there are many investment options for the future of daughters.

If you want to invest without risk then you can invest in Sukanya Samriddhi Yojana run by the government. If you want to invest with risk then you can invest in Mutual Fund.

About Sukanya Samriddhi Yojana

The Government of India offers 8.2 percent interest in Sukanya Samriddhi Yojana. You can invest a minimum of Rs 250 and a maximum of Rs 1.5 lakh in this. This scheme matures in 21 years. At the same time, investment in the scheme has to be made for 15 years.

If the investor does not invest every financial year then the Sukanya account gets frozen. There is no risk in Sukanya Samriddhi Yojana and guaranteed returns are available, due to which it is a better scheme for parents.

About mutual funds

If you want to get higher returns then you should invest in mutual funds. However, there is also risk in this. Mutual funds are linked to the share market. If you want, you can invest in SIP (Systematic Investment Plan). You can create a huge fund by depositing a fixed amount every month in SIP.

To know which of these two options will be more profitable, we will first have to understand the calculations of these two options.

How much return will you get in Sukanya Yojana?

If you invest Rs 5,000 every month in Sukanya Yojana, you will invest a total of Rs 60,000 in one year and Rs 9,00,000 in 15 years. There is no need to invest in this scheme after 15 years.

When the scheme matures i.e. after 21 years, you will get interest of Rs 18,71,031 at the interest rate of 8.2 percent. This means that you will get a total of Rs 27,71,031.

How much return will you get from SIP

If you invest Rs 5000 every month in SIP continuously for 15 years, then you will invest a total of Rs 9 lakh. You can get an average return of 12 percent on SIP. At 12 percent, you can get Rs 16,22,880 as interest after 15 years.

If you withdraw money from SIP within 15 years, you will get a total of Rs 25,22,880. This return is around the return of Sukanya Yojana.

Sukanya or SIP? (SSY Vs SIP)

Sukanya Yojana comes under EEE category. This means that you can avail tax benefits in this. In this you will not have to pay any kind of tax. Tax benefits cannot be availed in SIP.

Sukanya Yojana provides guaranteed returns without any risk. Whereas SIP is linked to the market, due to which you cannot calculate how much return you will get in it. Experts advise that one should invest in mutual funds for a long time, because it reduces the risk.

To avail the benefits of Sukanya Yojana, your daughter’s age should be less than 10 years. If the age is more than 10 years then you cannot avail the benefit of this scheme. There is no such age limit in SIP. You can start SIP anytime. SIP is flexible, you can start it anytime.


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