Be it financial planning for a daughter or a source of extra income, investors have many options these days. While on one hand, the Central Government's Sukanya Samriddhi Yojana (SSY) gives an opportunity to secure the future of daughters with guaranteed returns and tax benefits, on the other hand, non-convertible debentures (NCDs) of big corporate companies like Adani Enterprises are promising higher returns. In such a situation, the question arises before the father of a daughter, which one to choose between government trust or corporate profits?

Sukanya Samriddhi Yojana: Guaranteed investment for daughters
Sukanya Samriddhi Yojana is a small savings scheme that is only for girls. Currently, this scheme is getting an annual interest of 7.6 percent, and it is completely tax-free. Investment can be made in this scheme for a maximum of 15 years, and maturity occurs when the daughter is 21 years old. The most important thing is that this is a government scheme, so the risk is zero.

Adani Enterprises NCD: High returns, but with risk

Adani Group's flagship company, Adani Enterprises Limited (AEL) on Sunday (July 6) announced the release of its second public issue of secured, rated, and listed redeemable, non-convertible debentures (NCDs) worth up to Rs 1,000 crore. The issue will open on July 9 and close on July 22, and will offer up to 9.30 per cent annual interest to NCD holders. This return is much higher than the Sukanya Samriddhi Yojana. However, NCDs are riskier because if the company defaults, your money may get stuck.

What are non-convertible debentures (NCDs)

When a company borrows money, it can raise money from people through NCDs. NCD i.e., non-convertible debentures, is a type of loan in which the company allows you to invest money for a fixed period and pays fixed interest on it. It gives better returns than bank FD or Sukanya Samriddhi Yojana, but there is risk in it too.

If your goal is long-term savings for specific purposes like your daughter's education or marriage, then the Sukanya Samriddhi Yojana is a better and reliable option. On the other hand, if you can take a little risk and want more returns, then Adani Enterprises' NCDs can make a place in your portfolio.