SSY Vs SIP: 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 the options of SIP and Sukanya Samriddhi Yojana. SIP is a market-linked scheme, through which investment is made in mutual funds. Whereas SSY is a government scheme on which 8.2% interest is currently being given. Both the schemes are good in terms of adding big money in the long term. But if you have to choose one scheme, where would it be better to invest? If you are confused thinking about this, then understand the returns of both schemes here, this will make it much easier for you to make a decision.
SSY Vs SIP: First understand the advantages and disadvantages

One advantage of SSY is that you can avail tax benefits in three ways. This scheme comes under the EEE category. The amount deposited every year is not taxed, apart from this, the interest earned every year is also not taxed and the entire amount received at the time of maturity is also tax-free, that is, there is tax saving in investment, interest/return, and maturity. But you do not get tax exemption in SIP.

Apart from this, the return received 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. In SIP, the benefit of rupee cost averaging is available in the long term, in such a situation the risk is reduced considerably. The average return in SIP is considered to be 12 percent. This is much better than Sukanya. Sometimes you get more interest than this.

You can invest in Sukanya Samriddhi Yojana only if your daughter is less than 10 years old. But age has nothing to do with SIP, you can invest in the name of the girl anytime.

Investment in SIP has to be done 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 is done in SSY for 15 years, after which that amount is kept locked. The 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 Rs 60,000 will be invested in a 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, a total interest of Rs 18,71,031 will be received in 21 years 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 mutual funds through SIP, then in 15 years you will invest Rs 9,00,000 here as well. 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%, then in 15 years, an investment of 9 lakhs will yield an interest of Rs 16,22,880. If you withdraw this amount in 15 years, then you will get Rs 25,22,880. This amount is close to the return received on Sukanya Samriddhi in 21 years.

On the other hand, if you continue this investment for 1 more year, that is, invest 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 return of Sukanya Samriddhi Yojana. If you continue this investment for 21 years continuously, then you can get up to Rs 56,93,371 at the rate of 12% return through SIP, while your total investment will be Rs 12,60,000. That means you will get Rs 44,33,371 on your investment only as interest.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.