SIP vs Sukanya Samriddhi: Rs 1.5 lakh/year investment each year for 15 years; which can create a larger corpus for your daughter

Compare SIP and Sukanya Samriddhi schemes for your daughter's future. Discover which investment creates a larger corpus with Rs 1.5 lakh annual investment over 15 years. Learn about returns, maturity value, tax benefits, and account features. Plan wisely for your child’s education and secure her financial future effectively.

ZeeBiz WebTeam | Nov 25, 2024, 03:28 PM IST
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Planning your daughter’s financial future? Explore the differences between a Systematic Investment Plan (SIP) and Sukanya Samriddhi Account (SSA) with an annual investment of Rs 1.5 lakh over 15 years. Understand their benefits, maturity values, estimated returns, and tax advantages. SIP offers flexible, market-linked growth, while SSA ensures guaranteed returns with tax exemptions. This guide helps you decide which option is better for securing your daughter’s education and long-term financial goals. Make an informed decision for her brighter future!

 

 

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Systematic Investment Plan (SIP)

Systematic Investment Plan (SIP)

Investment Method:

  • A fixed amount is invested in mutual funds at regular intervals.
  • Suitable for small, periodic investments instead of a large one-time sum.

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Investment Process

Investment Process

  • Amount is automatically debited from your bank account.
  • The funds are invested in chosen mutual fund schemes at predetermined intervals.
  • Units of mutual funds are allocated based on the Net Asset Value (NAV).

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Growth of Investment:

Growth of Investment:

  • ​Additional units are added with every investment, increasing with market rates.
  • Larger reinvested amounts result in greater returns.

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Return Frequency

Return Frequency

Returns can be received either at the end of the SIP tenure or at periodic intervals.

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Investment Example

Investment Example

  • ​Rs 1.5 lakh per year for 15 years.
  • Total Invested: Rs 22,50,000
  • Estimated Returns: Rs 40,57,200
  • Total Value: Rs 63,07,200

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Sukanya Samriddhi Account Scheme

Sukanya Samriddhi Account Scheme

Eligibility and Limits:

  • Minimum deposit: Rs 250
  • Maximum deposit: Rs 1.5 lakh per financial year.
  • Account can be opened for a girl child up to the age of 10 years.
  • Only one account per girl child.

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Account Features

Account Features

  • ​Can be opened in post offices and authorized banks.
  • Withdrawal allowed for higher education expenses.
  • Premature closure possible after the age of 18 in case of marriage.
  • The account can be transferred anywhere in India between post offices or banks.
  • Matures after 21 years.

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Tax Benefits

Tax Benefits

  • ​Investment qualifies for tax deduction under Section 80C of the Income Tax Act.
  • Interest earned is exempt from Income Tax under Section 10.

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Investment Example

Investment Example

  • ​Rs 1.5 lakh per year for 15 years.
  • Total Invested: Rs 22,50,000
  • Total Interest: Rs 46,77,578
  • Maturity Value: Rs 69,27,578

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SIP vs Sukanya Samriddhi: Rs 1.5 lakh/year investment each year for 15 years; which can create a larger corpus

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