Friday, 21 April 2017

Which is the best future investment plan for a girl child?

Having a girl child is every parent’s dream. And if you happen to be a girl child to your parents, your parents will be concerned about everything starting from your upbringing, schooling, education, marriage and the list never ends. And money plays an important role in fulfilling obligations like higher education, marriage and others.
Financial planning will take you a long way in achieving your aspirations. You should start your financial planning as soon as a child is born be it girl or boy. But a girl child is very special for every parent.




Every father thinks of making his daughter independent, get her married and settle down in life. Parents keep their wishes at the last spot and priority is being given to children especially the girl child as a girl is the most close to her father.

Let us discuss the various options available for investment if you have a girl child and how you can choose them wisely to secure them financially.

Options for investing:

SIPs
SIPs is an abbreviation for systematic investment plan. SIPs are mutual fund wherein you can invest money at frequent intervals mostly every month for creating corpus fund. It does not require you to pay a lump sum amount and the money is invested into equities market or debt market or a combination of both. Financial experts recommend investing in SIPs at an early age so that the investor can enjoy the benefits of compounding.

Gold ETF
You will have the desire to gift gold to your daughter during occasions and marriages. GOLD ETF is one of the best options for investing keeping a girl baby in mind. Gold ETF (exchange-traded funds) is gold in paper form and not in physical form. Gold ETF serves two purposes, one is it creates a well- diversified investment portfolio and can be used for your daughter’s wedding.

SukanyaSamridhiyojana
It is a small deposit scheme introduced by the Prime minister Narendra Modi under the betibachaobetipadhao program. This scheme was introduced for encouraging a girl child and to ensure a girl baby can have a shining future for herself.  The main objective of this scheme is to meet the education and marriage cost of the girl child. Investing in this account gives attractive rate of interest and the income of deposits is exempt from taxation.
An account in sukanyasamridhiyojana (SSY) can be opened after the girl child is born and up to she turns 10 years of age. You can open this account in post offices or authorized banks by investing a minimum of Rs.1,000/- and a maximum of Rs.1.5 lacs during a financial year. Also, you can withdraw 50% of the balance for education purpose after the girl child attains 18 years of age.

Child insurance plan
Child insurance plan is an insurance plan wherein you invest money for a fixed period of time and get returns after the policy matures. The thought of any unwarranted situation making the child financially unsecure is always at the back of your mind. To ensure the security of child, you should buy a child insurance plan as it ensures that in case of sudden demise of the bread winner, the child will have adequate financial resources to fulfill his aspirations.
Many insurance companies are offering child plans with features like:

ü  Riders for premium waiver and sum assured to the nominee in the event of death of policy holder.
ü  Sum assured decided keeping in mind the inflation and the future cost of higher education
ü  Withdraw the funds partially as and when needed and not when the policy matures
ü  Takes into account the age of the child while arriving at the tenure of the policy
ü  Enables to build a huge corpus required to fund the child’s future needs like education and marriage

You can buy a child plan online by comparing the plans offered by various insurance companies. There are several websites, which help you in comparing the benefits offered and selects the one which best suits your need.


To ensure a girl baby’s future, you should definitely buy a child insurance plan to secure her dreams and ambitions financially.

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