Sukanya Samriddhi Yojana (SSY) vs NPS Vatsalya vs SIP : Rs 12,000 monthly investment for 15 years, which of the 3 can give higher return
Even as the SIP can be across asset classes, SSY offers a better return in comparison to Mutual Fund SIP.
Sukanya Samriddhi Yojana (SSY) vs NPS Vatsalya vs SIP calculator: If you are short of funds and zeroing in on the best choice among different investment avenues including SSY, NPS Vatsalya or SIP for financial planning for yo, here is a quick summary on the crucial aspects of the different schemes. Additionally, the write-up will also focus on which scheme will earn you the highest return in case of monthly investment of Rs 12,000 continued for 15 long years.
SSY or NPS Vatsalya or Mutual Fund SIP
Experts advise that for guaranteed returns and specific goals such as child's education and marriage, investors can go for SSY.
SSY or NPS Vatsalya or Mutual Fund SIP
NPS Vatsalya can be a better choice if the goal is wealth creation for your child's future.
One drawback to note for SSY
Another important aspect of SSY is fhat it can be started for girl child under 10 years, so to say if your girl child is over this age threshold you cannot invest in this scheme.
NPS Vatsalya also does not cater to emergency needs as the maximum withdrawal is capped at 20%
The limitation of NPS Vatsalya scheme is that full withdrawal isn't permitted under NPS Vatsalya, with only partial withdrawals based on contributions allowed. Additionally, premature withdrawal from NPS Vatsalya is capped at 20% of the corpus, which may restrict the amount available for immediate needs.
SSY scheme @ 8.2 interest rate
The scheme with a total investment of Rs 21,60,000 spread across 15 years via a monthly SIP of Rs 12,000 will offer an interest of Rs 44,95,342. Taking an investor's total fortune to Rs 66,55,342.
SIP of Rs 12,000 per month in 15 years
Assuming 12 annualised return and a period of 15 years, your investment of Rs 21.6 lakh would fetch a return of Rs 38,94,912. This thus takes the total investment to Rs 60,54,912.
Return from NPS Vatsalya if 75% allocation is made in equities
The PFRDA estimates an annualised return of 13 per cent and so the investment will yield an estimated return of Rs 45,08,175. So, the total investment will now be worth Rs 66,68,175.
NPS Vatsalya gives better return
So, of all the 3 schemes, NPS Vatsalya targeting equities will prove to offer a higher return in comparison to SSY and mutual fund SIP.