Mutual Fund SIP vs Sukanya Samriddhi Yojana: Which offers higher returns on a Rs 12,500 monthly investment over 15 years?

• ​An investment route offered by mutual funds.
• Allows investing a fixed amount at regular intervals (monthly or quarterly) rather than a lump sum.
• Minimum installment can be as low as Rs 500 per month.
• Similar to a recurring deposit with an option to automate bank debits.

• ​Encourages disciplined investing.
• Minimizes concern over market volatility and timing.
• Ideal for long-term investments.

• ​Start early.
• Invest regularly for maximizing returns.

Rupee Cost Averaging

• More units are bought when the market is low and fewer units when the market is high.
• The average cost of acquisition benefits from market fluctuations.

• SIPs are still subject to market risks and volatility despite cost averaging.

Mutual Fund SIP Equity

• Total investment: Rs 1,20,000
• Total interest: Rs 3,81,270
• Maturity value: Rs 5,01,270

• Total investment: Rs 1,50,000
• Total interest: Rs 4,76,587
• Maturity value: Rs 6,26,587

• Total investment: Rs 1,50,000
• Total interest: Rs 3,11,839
• Maturity value: Rs 4,61,839

Purpose
A government savings scheme designed for the financial security of the girl child.
Helps ensure long-term savings for the daughter’s education or marriage.

• Attractive interest rates and tax benefits under Section 80C of the Income Tax Act, 1961.
• Contribution allowed for 15 years, but the account matures after 21 years.
• Interest accumulates throughout the maturity period.

SSY
A government-backed savings scheme for the girl child.
Offers high-interest rates and tax benefits.
Long-term savings with a maturity of 21 years.

SIP
A mutual fund investment option.
Potential for higher returns but subject to market risks.
Flexible and suitable for long-term goals.