1. Public Provident Fund (PPF)
PPF is a government-backed long-term savings scheme with a fixed interest rate and tax benefits. It's a secure choice for parents looking to plan for their child's future. Key Benefits: Tax benefits under Section 80C, minimum deposit of Rs. 500 per year, maximum limit of Rs. 1.5 lakh, 15-year tenure.
2. Sukanya Samriddhi Yojana (SSY)
SSY is designed for girl children, offering a good interest rate and tax benefits. It's ideal for securing your daughter's future goals. Key Benefits: Tax benefits under Section 80C, minimum deposit of Rs. 250 INR per year, maximum limit of Rs. 1.5 lakh INR, 21-year tenure or until the girl child is married after 18.
3. Unit-Linked Insurance Plans (ULIPs)
ULIPs combine insurance and investment, offering flexibility in fund selection. Parents can secure their child's future with tax benefits. Key Benefits: Tax benefits under Section 80C, insurance coverage, market-based returns, investment flexibility.
4. Mutual Funds
Mutual funds offer professional management, diversification, and liquidity for long-term growth. Ideal for parents planning for their child's education or future needs. Key Benefits: Diversification, professional management, liquidity, potential for good returns.
5. National Savings Certificate (NSC)
NSC, like PPF, offers a fixed interest rate and tax benefits. It's a low-risk investment option with a 5 or 10-year maturity. Key Benefits: Tax benefits under Section 80C, fixed interest rate, low-risk.
6. Fixed Deposits (FDs)
FDs are low-risk investments offered by banks. Parents can invest for their children and enjoy tax benefits under Section 80C. Key Benefits: Guaranteed returns, safety, tax benefits, various tenure options.
7. Equity Shares
Equity shares represent ownership in a company and offer the potential for higher returns. Parents can invest for their child's future, but it comes with higher risks. Key Benefits: Capital appreciation potential, ownership, participation in company decisions.
Gold is considered a safe and reliable investment, serving as a hedge against inflation. It's a valuable choice for securing a child's financial future. Key Benefits: Safe investment, hedge against inflation, long-term appreciation.
9. Real Estate
Real estate offers capital appreciation and rental income potential. It can be a good long-term investment, but it comes with upfront costs and illiquidity. Key Benefits: Capital appreciation, rental income, long-term investment.
10. Education Savings Plan
Some financial institutions offer education savings plans, guaranteeing returns and providing tax benefits. Ideal for parents investing in their child's education. Key Benefits: Guaranteed returns, tax benefits, focused on education.