Investment for Children's Education: The cost of children's education is constantly increasing. Therefore, it's important to start investing early. Investing in these areas can build a strong fund.

Investment for Children's Education: The cost of children's education is increasing every year, and this is why parents are starting to plan early. Fees for streams like medical, engineering, management, or studying abroad are rising so rapidly that saving alone is not enough. Here, the real difference lies in proper investment. If your child is young, starting with a small amount can build a substantial fund over time. The only thing to decide is which option to invest your money in. Some plans are safe, some offer better returns, and some are specifically designed for daughters' education. Let's see which option best suits your needs.

PPF: An Option with Stable Returns

PPF has long been considered a reliable investment because your hard-earned money is safe, and the interest rate is determined by the government. This is ideal for parents who prefer a risk-free approach. The lock-in period is 15 years, making it a good option for long-term goals like their children's education. Consistent investments can build a substantial corpus by maturity.

It currently offers an interest rate of 7.1%. Investments can start with a minimum of ₹500 per year, and the maximum limit is ₹1.5 lakh. Even after maturity, the account can be expanded in 5-year blocks. Tax benefits are also available.

Mutual Fund Smart Growth Plan

If you want to build a large corpus for your children's education, a mutual fund SIP is a wise option. Returns are market-dependent, so there's a risk involved. However, compounding significantly offsets this risk over the long term. Over 10 to 15 years, a SIP can grow rapidly, making it easier to manage large expenses.

The ability to start with a small investment and increase the amount every year makes it even more beneficial. This is an excellent choice for parents who can withstand some market fluctuations and have a long-term perspective. The market will fluctuate, but there are equally significant growth opportunities. Therefore, it's a good way to build a fund for their children's education.

Sukanya Samriddhi Yojana (Samriddhi Yojana) is the best for daughters.

If you have a daughter, the Sukanya Samriddhi Yojana (Samriddhi Yojana) is one of the most beneficial schemes. It's safe and currently offers a high interest rate of 8.2 percent. The account is opened in the name of a daughter under 10 years of age. The investment period is 15 years, and the account matures at 21. A minimum of ₹250 and a maximum of ₹1.5 lakh can be deposited annually. The returns can cover a significant portion of your daughter's higher education. Tax benefits are also available, and there's no risk involved. Therefore, this plan is considered ideal for parents looking to build a future fund for their daughters.