Investing for your daughter’s future is one of the most responsible financial steps you can take as a parent. From education to marriage, the cost of raising a girl child in India is rising, making early investment crucial. Fortunately, there are several government-backed and private investment plans tailored specifically to secure the future of a girl child.
In this guide, we’ll explore the best investment plans for a girl child in India, with their features, benefits, eligibility, returns, and how they compare.
Why Invest Early for a Girl Child?
- Rising education costs: A higher education degree today can cost ₹15–50 lakhs.
- Marriage expenses: Wedding costs in India range from ₹10 lakhs to ₹50 lakhs or more.
- Tax benefits: Many schemes offer Section 80C deductions.
- Compounding advantage: The earlier you start, the more wealth you can accumulate.
🏆 Top 7 Best Investment Plans for Girl Child in India
| Investment Plan | Type | Returns | Lock-in Period | Tax Benefit |
|---|---|---|---|---|
| Sukanya Samriddhi Yojana (SSY) | Govt. Scheme | 8.2% (Q2 FY25) | Until girl turns 21 | Yes (80C) |
| Public Provident Fund (PPF) | Govt. Scheme | 7.1% | 15 years | Yes (80C) |
| Child ULIPs | Market-Linked | 8–12% (avg) | 5–10 years | Partial (under 80C) |
| Recurring Deposits | Bank | 6–7% | 1–10 years | No |
| National Savings Certificate (NSC) | Govt. Scheme | 7.7% | 5 years | Yes (80C) |
| Mutual Funds (SIP) | Market-Linked | 10–15% | Flexible | LTCG after 1 year |
| Fixed Deposits (Minor FD) | Bank | 6–7% | Flexible | TDS may apply |
🔒 1. Sukanya Samriddhi Yojana (SSY) – The Most Popular Choice
✅ Key Features:
- Launched under Beti Bachao, Beti Padhao initiative.
- Can be opened only in the name of a girl child before she turns 10.
- Only one account per girl.
- Current interest rate (Q2 FY 2025): 8.2% (compounded annually).
📌 Investment Details:
- Minimum: ₹250/year
- Maximum: ₹1.5 lakh/year
- Deposit period: Up to 15 years from account opening
- Maturity: 21 years from account opening or upon girl’s marriage (after 18)
💰 Tax Benefits:
- EEE (Exempt-Exempt-Exempt) status
- Investment, interest, and maturity amount are tax-free under Section 80C
Ideal For: Long-term investment for higher education and marriage
💼 2. Public Provident Fund (PPF)
Though not specifically for girl children, a PPF account can be opened in the child’s name by parents or guardians.
✅ Key Features:
- Government-backed, safe investment
- Current interest rate: 7.1%
- Minimum investment: ₹500/year
- Maximum: ₹1.5 lakh/year
⏳ Lock-in Period:
- 15 years, with partial withdrawal allowed after 7 years for education
💰 Tax Benefits:
- Tax deduction under Section 80C
- Interest and maturity amount tax-free
Ideal For: Safe, long-term investment with steady returns
📈 3. Child ULIPs (Unit Linked Insurance Plans)
ULIPs are hybrid products offering both insurance + investment in market-linked funds.
✅ Key Features:
- Can be bought specifically in child’s name
- Invests in equity/debt/mixed funds
- Offers life cover to parent and fund security to child
⏳ Lock-in Period:
- Minimum 5 years, but long-term benefits after 10–15 years
💰 Tax Benefits:
- Premiums eligible for Section 80C
- Partial tax-free maturity (depends on terms & IRDA guidelines)
Pros:
- Potential for high returns (8–12%)
- Financial security if parent dies during the term
Ideal For: Parents comfortable with market risk and long-term goals
💹 4. Mutual Funds via SIP (Systematic Investment Plan)
Mutual funds are one of the best tools for wealth creation for your daughter’s long-term goals.
✅ Key Features:
- Choose child-specific mutual fund plans (target-date funds, etc.)
- SIP amount: Start from ₹100/month
- Diversified options (Equity, Hybrid, Debt)
💰 Taxation:
- Equity Funds: LTCG above ₹1 lakh taxed at 10%
- No tax benefit under 80C
Pros:
- High return potential: 12–15% over long term
- Flexible and transparent
Ideal For: Long-term goals like higher education (10+ years)
🏦 5. Recurring Deposit (RD)
A bank RD can be opened in the name of a minor to inculcate saving discipline.
✅ Key Features:
- Monthly deposits
- Interest rate: 6–7%
- Tenure: 1–10 years
💰 Taxation:
- Interest is taxable
- No deduction under 80C
Ideal For: Short-term goals or if you want low-risk saving option
🧾 6. National Savings Certificate (NSC)
A safe investment option under the Post Office Savings Scheme, though not child-specific.
✅ Key Features:
- Fixed tenure: 5 years
- Interest rate: 7.7% (Q2 FY25)
- Compounded annually, paid on maturity
💰 Tax Benefits:
- Eligible for Section 80C deduction
- Interest is taxable but deemed reinvested (80C benefit)
Ideal For: Parents preferring guaranteed, low-risk returns
💰 7. Fixed Deposit (Minor FD)
Banks offer Minor FDs which can be opened in your daughter’s name.
✅ Key Features:
- Interest: 6–7%
- Tenure: Flexible (6 months to 10 years)
- Early withdrawal may be allowed
💰 Taxation:
- Interest is taxable
- TDS applicable if interest exceeds ₹40,000/year
Ideal For: Safety-first investors or for short-term goals
📊 Comparison Table: Investment Plans for Girl Child
| Plan | Risk | Returns | Lock-in | Best For |
|---|---|---|---|---|
| SSY | Low | 8.2% | 21 years | Higher education, marriage |
| PPF | Low | 7.1% | 15 years | Long-term savings |
| ULIP | Medium | 8–12% | 5+ years | Education, wealth creation |
| SIP | Medium-High | 10–15% | Flexible | Wealth building |
| RD | Low | 6–7% | 1–10 years | Short-term goals |
| NSC | Low | 7.7% | 5 years | Mid-term planning |
| FD | Low | 6–7% | Flexible | Safety-focused investment |
🧠 Tips to Choose the Right Plan
- Start Early: Begin when the child is 1–5 years old to maximize returns.
- Diversify: Combine SSY + SIP + ULIP for safety and growth.
- Match with goals: Use SSY for marriage, SIPs for education, FD for short-term needs.
- Check Tax Status: Opt for EEE options where possible (SSY, PPF).
- Track Regularly: Review investments annually to adjust SIPs or fund choices.
👨👩👧 Final Thoughts
Choosing the right investment plan for your girl child can ensure she has financial independence and freedom to pursue her dreams. Whether it’s her education, career, or marriage, your early financial planning today can shape her future tomorrow.
Among all, Sukanya Samriddhi Yojana stands out for its guaranteed returns and tax benefits, while mutual fund SIPs offer wealth creation. A mix of both can provide a balanced portfolio for her future needs.
✅ FAQ: Investment Plans for Girl Child
Q1. What is the minimum age to open Sukanya Samriddhi Yojana?
A: Anytime before the girl child turns 10.
Q2. Can I invest in PPF and SSY together?
A: Yes, you can invest in both within the ₹1.5 lakh 80C limit.
Q3. Is SSY better than PPF?
A: For a girl child, SSY offers higher returns and longer lock-in, making it more suitable.
Q4. Are there child-specific mutual funds?
A: Yes, AMCs like HDFC, ICICI, SBI, and Axis offer Child Plans for future education goals.