Sukanya Samriddhi vs PPF vs Mutual Funds: Best Plan for Girl Child?
Choosing the best investment for girl child is one of the most important financial decisions Indian parents face. With options like Sukanya Samriddhi Yojana (SSY) offering 8.2% guaranteed returns and Mutual Funds delivering 12-14% growth, the choice isn't easy.
What is Sukanya Samriddhi Yojana (SSY)?
SSY is a government-backed savings scheme under the *Beti Bachao Beti Padhao* campaign. It offers the highest interest rate among small savings schemes.
Comparison Table
| Feature | SSY | PPF | Mutual Funds |
|---|---|---|---|
| Return | 8.2% (Fixed) | 7.1% (Fixed) | 12-14% (Var) |
| Risk | Zero (Govt) | Zero (Govt) | Medium-High |
| Lock-In | 21 Years | 15 Years | Liquid |
| Tax | EEE (Free) | EEE (Free) | LTCG (12.5%) |
How SSY Works
- Open at Post Office or Bank.
- Deposit for 15 years only. Interest continues till 21st year.
- Max 2 accounts per family (one per daughter).
- Age 18: 50% withdrawal for higher education.
- Age 21: Full withdrawal allowed; account closes.
Tax Benefits: EEE
Exempt-Exempt-Exempt
- Investment80C Deduction (up to ₹1.5L)
- InterestTax-Free (8.2%)
- Maturity100% Tax-Free
The 21-Year Lock-In Reality
The "60-40 Rule" Strategy
Allocate 60% to SSY for Safety (Education). Allocate 40% to Equity SIPs for Growth (Marriage/Higher Studies).
Invest ₹1.5L/yr → SSY: ~₹36 Lakhs
Invest ₹1L/yr → MF: ~₹50 Lakhs
Why It Works:
- Guaranteed Base: SSY protects basic needs.
- Inflation Beating: MFs beat education inflation (10%).
- Liquidity: MF portion is accessible.
Maturity Corpus Examples (SSY)
| Annual Deposit | Invested (15Y) | Maturity (21Y) |
|---|---|---|
| ₹50,000 | ₹7.5 Lakhs | ~₹22 Lakhs |
| ₹1,00,000 | ₹15 Lakhs | ~₹44 Lakhs |
| ₹1,50,000 | ₹22.5 Lakhs | ~₹66 Lakhs |
Frequently Asked Questions (FAQs)
Final Verdict
SSY is a "Must-Have" for safety, but not enough for wealth creation.
Fincado Research Team
Fact CheckedOur analysis is built on deep-dive research into RBI Benchmarks and lender-specific disclosures. We verify every interest rate and fee structure against real-world borrower approvals to ensure the highest level of accuracy for Indian home buyers.
Disclaimer: Interest rates are subject to change by the government. Mutual fund investments are subject to market risks. This guide is for educational purposes. Consult a financial advisor for personalized planning.
Plan for her future today
Calculate how much corpus you can build with SSY and SIPs.