Feeling of having a daughter is the best feeling in the world. The moment you hold her when she is light as a feather. You resolve that you will not let any harm come her way or even look her way. You give her best education, best clothes, best everything. But since India is predominantly a middle class country, a normal family has hard time making ends meet. The basic source of income in India is salary. And we Indians love to save. So here are some Investment Options For Daughters other than sukanya samriddhi account which we consider as a mode of saving and increasing it.
(Case: Parents have excess Rs 1000 monthly and want to save for daughter. In this case we show you return after 5 years. )
This is safest and best popular option in India and best investment options for daughters. Now suppose Parent make FD of 60000 INR (here we take 5 year of excess money as one time investment) for 5 year. In today scenario the FD and RD interest rate is between 6.5 to 7.5 and we take best case of 7.5 interest rate. Amount on maturity is 86138 INR. It is fair amount of return but with low liquidity and no option to increase the amount of investment.
Interest rate are same as FD but in this case parent invest in recurring bases suppose the cycle is monthly. Now suppose father or mother deposit INR 1000 on monthly bases for 5 year. On maturity the value 72501. This is slightly on the lower side but it provides you with fair amount of liquidity, as now there are new products like Flexi RD but the returns are lower than FD.
Mutual Funds or Systematic Investment Plan (SIP):
If you have acumen for risk then you should go for investment in mutual funds. The asset management companies take the money you invest and invest it in the market according to the product of your choice. As it says in the advertisement “Mutual funds are subjected to market risks” but let me assure you not every mutual fund is like that. There is a vast array of products you can choose from. But as the saying goes, “More risk, More return”. The mutual funds usually give a return somewhere in between 10% to 20%, which is fairly higher than the conventional saving options. Suppose, you invest in Blue Chip companies which are relatively safer to invest in, you get a annualized return of 12% to 20%, depending on market conditions. If we take 17% annualized yield for the same investment of 1000 INR per month then the total return you get after 5 year is INR 94907. Because of best return in all of investment this is investment options for daughters.