Best Investment Plan For Child in India
An investment plan for a child means strategically setting aside funds and building wealth. Which will provide financial security for the child’s future. So we definitely need to know about Best Investment Plan For Child in India.
Investing in a child care plan provides parents with peace of mind, support for child development and opportunities for socialization. This allows parents to fulfill work commitments while ensuring their child receives safe and nurturing care. Child care programs promote early learning, social interaction, and skill development, which contribute to a child’s overall well-being and growth.
Best Investment Plan For Child Future & Education
When it comes to investing for your child’s future, there are several options to consider based on your financial goals, risk tolerance, and time horizon. Here are some Best Investment Plan For Child in India that can help you build wealth for your child over the long term.
So let us know in detail about 3 Best Investment Plan Child Future & Education:
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(1) Sukanya Samriddhi Yojana (SSY) :
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India specifically designed to promote the welfare of the girl child. SSY provides a disciplined and tax-efficient savings option for the future education and marriage expenses of the girl child.
Here are some key details about the scheme:
| Features | in Details |
|---|---|
| Purpose | The main objective of this scheme is to encourage parents to save for the future education and marriage expenses of their girl child. |
| Eligibility | The scheme is available for families with a girl child below the age of 10 years. Parents or legal guardians can open an account on behalf of the girl child. |
| Deposit and Investment | A minimum initial deposit of Rs. 250 is required to open the account, and subsequent deposits can be made in multiples of Rs. 100. The maximum annual deposit limit is Rs. 1.5 lakh. The funds deposited in the account earn a competitive interest rate. |
| Tenure and Maturity | The scheme has a lock-in period of 15 years from the date of account opening. However, partial withdrawals are allowed after the girl child turns 18 years old, specifically for higher education expenses. The account matures after 21 years from the date of opening or when the girl child gets married, whichever is earlier. |
| Tax Benefits | Contributions made to the scheme are eligible for a tax deduction under Section 80C of the Income Tax Act. using this scheme you can get 83 Lakh Rupees tax free money. And the interest earned and the maturity amount are tax-free. |
| Interest Rate | The interest rate for the scheme is set by the government and is typically higher (7.6%) than most savings schemes. |
To start the sukanya samriddhi yojana scheme – Click Here…
(2) The National Savings Certificate (NSC) :
The National Savings Certificate (NSC) is a popular savings instrument offered by the Government of India. It is a fixed-income investment scheme that encourages individuals to save while providing assured returns.
Here are some key features of the National Savings Certificate:
| Features | in Details |
|---|---|
| Eligibility | NSC can be purchased by any Indian resident individual, either individually or jointly. It is not available for NRIs (Non-Resident Indians). |
| Deposit and Investment | NSC can be purchased in the form of certificates from designated post offices across India. The minimum investment amount is Rs. 100, and there is no maximum limit. NSC certificates are available in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000, and Rs. 10,000. |
| Maturity Period | NSC has a maturity period of five years. Upon maturity, the invested amount along with the accumulated interest is paid out to the investor. |
| Tax Benefits | The investment made in NSC qualifies for a deduction under Section 80C of the Income Tax Act, up to a specified limit. However, the interest earned on NSC is taxable. |
| Interest Rate and Compounding |
NSC offers a fixed interest rate (6.8%) that is announced by the government periodically. The interest rate is typically higher than that of regular savings accounts. The interest is compounded annually but paid out at maturity. |
| Liquidity | NSC is a fixed-term investment, and premature withdrawal is not allowed. However, in case of certain exceptional circumstances such as the death of the holder or forfeiture by a pledgee, premature encashment may be permitted. |
To start the National Savings Certificate scheme – Click Here…
(3) Other’s – Education Savings Plans :
Education savings plans are investment options specifically designed to help individuals save for their children’s education expenses. These plans provide a disciplined approach to saving for education and offer potential growth on the invested funds. In India, there are several education savings plans available.
Here are a few common types:
| Education Savings Plan’s | in Details |
|---|---|
| Child Education Insurance Plans | Several insurance companies offer child education insurance plans that combine savings and insurance benefits. These plans typically provide a guaranteed sum assured and may offer periodic payouts during the child’s education phase. |
| Education Savings Funds | Many mutual fund companies offer education-focused mutual funds. These funds are designed to accumulate wealth over the long term and provide potential growth. Investors can start investing in these funds through systematic investment plans (SIPs) and align their investments with the timeframe of their child’s education goals. |
| Unit-Linked Insurance Plans (ULIPs) | ULIPs are insurance-cum-investment plans that provide life insurance coverage along with an investment component. Some ULIPs offer specific options to allocate funds towards education goals. These plans provide the opportunity for capital appreciation and may have flexible investment options to suit your risk profile. |
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Remember that each investment option has its own advantages and considerations. Know the relationship “Best Investment Plan For Child in India” well before choosing the best investment plan for your child. Then choose the best plan by evaluating your risk appetite, financial goals and time horizon
