Business News Desk – If you are the father of a daughter and want to start investing in her name to meet all her future needs, then you have both SIP and Sukanya Samriddhi Yojana options. SIP is a market linked scheme, through which investment is made in mutual funds. Whereas SSY is a government scheme, on which currently 8.2% interest is being given. Both the schemes are good for adding huge amount in long term. But if you have to choose one scheme, where would it be better to invest? If you are confused thinking this, then understand the returns of both the schemes here, this will make it much easier for you to take the decision.
SSY Vs SIP: Understand the advantages and disadvantages first
One advantage of SSY is that you can get tax benefits in three ways. This scheme comes under EEE category. In this, there is no tax on the amount deposited every year, apart from this there is no tax on the interest received every year and the entire amount received at the time of maturity is also tax free, i.e. investment, interest/return and maturity. Tax is saved. But you do not get tax exemption in SIP.
Apart from this, the return in Sukanya Samriddhi is fixed, but there is no guaranteed return in SIP because it is market linked. However, experts consider it a better investment option in the long term. SIP has the benefit of rupee cost averaging in the long term, in such a situation the risk is significantly reduced. The average return in SIP is considered to be 12 percent. It is much better than Sukanya. Sometimes you get more interest than this. You can invest in Sukanya Samriddhi Yojana only if your daughter’s age is less than 10 years. But age has nothing to do with SIP, you can invest in the name of the girl child anytime.
Investment in SIP has to be made for 15 years, but after that your money remains locked for many years. In such a situation you cannot use it. SIP is flexible. You can start it anytime and stop it anytime. A maximum of Rs 1.5 lakh can be deposited annually in SSY, but there is no such limit in SIP. You can invest any amount in it.
SSY return on monthly deposit of Rs 5000
Investment in SSY is made for 15 years, after which the amount is locked. This scheme matures after 21 years, that is, you get the maturity amount after 21 years. In such a situation, if you invest Rs 5000 every month in Sukanya Samriddhi Yojana, then the investment will be Rs 60,000 in one year and Rs 9,00,000 in 15 years. If calculated according to the current interest rate, then at the interest rate of 8.2 percent, the total interest received in 21 years will be Rs 18,71,031 and the maturity amount after 21 years will be Rs 27,71,031.
How much return from monthly SIP of Rs 5000
On the other hand, if you invest Rs 5000 every month in a mutual fund through SIP, then in 15 years you will invest Rs 9,00,000 here also. The average return on SIP is considered to be 12 percent. Sometimes it is even more than this. In such a situation, if we calculate at the rate of 12 percent, then in 15 years we will get interest of Rs 16,22,880 on an investment of Rs 9 lakh. If you withdraw this amount in 15 years, you will get Rs 25,22,880. This amount is close to the returns on Sukanya Samriddhi in 21 years.
Whereas if you continue this investment for 1 more year, i.e. for 16 years instead of 15, then at the rate of 12% you will get Rs 29,06,891, which is much more than the returns of Sukanya Samriddhi Yojana. If you continue this investment for 21 consecutive years, you can get up to Rs 56,93,371 through SIP at the rate of 12% return, while your total investment will be Rs 12,60,000. That means you will get only Rs 44,33,371 as interest on your investment.
