There are many investment options available in the market today to save money for the future of children. Especially, if you want to save money to secure your daughter's future, then you have the main options like Sukanya Samriddhi Yojana (SSY), National Pension System Vatsalya (NPS Vatsalya), and Mutual Funds. Each of these has its advantages and disadvantages. This is the reason why everyone gets confused in deciding which scheme to invest in to create a fund for the future of their daughter.

Sukanya Samriddhi Yojana is a government scheme that provides tax exemption along with guaranteed returns. Its interest rate is also excellent. NPS Vatsalya Yojana has been launched recently. Its objective is to promote long-term financial security for children. In this, an account can be opened for children below 18 years of age. Money can also be invested in a mutual fund for the future of the girl. Along with the possibility of getting higher returns from mutual funds, there is also a greater possibility of loss. Before choosing any one of these three investment options, it is important to know about all three in detail.

Sukanya Samriddhi Yojana
Any Indian citizen can open a Sukanya Samriddhi Yojana account in the name of his daughter. To be eligible for this scheme, the daughter's age should be between 0 to 10 years. It gives interest at the rate of 8.2 percent. In this, an annual deposit of ₹ 250 and a maximum of ₹ 1.5 lakh per year can be made. You can invest for a total of 15 years, after that the entire amount will be given on maturity after completion of 21 years. Investment, interest, and principal amount made in Sukanya Samriddhi Yojana are tax exempted.

NPS Vatsalya
NPS Vatsalya Yojana was launched recently. The minimum annual contribution is ₹1,000 and there is no upper limit on the deposit. Once the child turns 18, the account converts into a regular NPS Tier-I account, which the child can manage independently. Parents can open an account for a child below 18 years of age in NPS Vatsalya Yojana.

To open a Vatsalya account, you need to deposit a minimum amount of ₹1,000 initially and then contribute ₹1,000 every year. NPS has given a return of 14% in equities, 9.1% in corporate bonds, and 8.8% in government securities. If parents contribute ₹10,000 every year for 18 years, at an assumed rate of 10%, this investment will become a corpus of around ₹5 lakh at the end of this period.

Mutual Funds
You can also invest in mutual funds for your daughter's future. Mutual funds offer more flexibility than other options, however, they also involve market risk. Mutual funds have the potential to give higher returns than Sukanya Samriddhi Yojana and NPS Vatsalya Yojana.

Where to invest
According to experts, the best option depends on your financial goals, risk tolerance, and your daughter's age. While SSY offers tax-free guaranteed returns, NPS Vatsalya gives blended returns and protection for the long term. Mutual funds come with flexibility and potentially high returns, but they also involve market risk. In such a situation, by adopting a balanced approach, investors can ensure better financial security for their daughter's future.

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