Sukanya Samriddhi Yojana is a powerful financing tool, but because of inflation and withdrawal restrictions, it could not be enough on its own to cover future marriage and education expenses. By using SIPs to complement it with equity funds, you may better fulfill your future financial objectives and get larger returns.
After 15 years, you would have a corpus of ₹45 lakh if you continue saving ₹1.5 lakh a year. In seven more years, if left unattended, the corpus will increase to ₹73–74 lakh.
The substantial sum you will get in the future will be sufficient to support your darling daughter’s marriage and educational aspirations. Today, it easily costs around ₹25 lakh for a good professional 4-year education in India (such engineering, BSC + MSC). Additionally, this increases to ₹80 lakh to ₹1.05 crore for 8–10% inflation over the next 15 years.
Sukanya might not be able to achieve her marriage objective or even her ambition of pursuing a higher degree on her own. When your daughter needs money to launch her career, you should supplement your Sukanya payments with SIPs in equity funds to make sure you have enough saved.
Sukanya Samriddhi Yojana is a very strong debt instrument that offers a respectable 8+% return and enables parents to invest for their daughters’ futures under the Exempt-Exempt-Exempt taxes. However, the Sukanya Samriddhi Yojana’s upper ceiling of ₹1.5 lakh deposits per year, its 15-year contribution period, and restrictions at the time of withdrawal are only a few problems that show that accumulating money in this scheme would not be sufficient for your daughter.
India’s inflation rate for schooling is far higher than the government’s reported daily inflation rate of 6% for households. I believe that everyone should have some allocation to stocks (via SIPs) as they have historically produced long-term average returns of 10-12%, which outpace inflation.
You should invest up to 75% in equities funds and the remaining 25% in Sukanya Yojana if you consider yourself an active investor. It is advised that investors who are balanced allocate 50% of their portfolio to each of the two instruments. Additionally, as conservative savers by nature prefer risk-free returns, a sizable portion of your investments should be in Sukanya, up to the ₹1.5 lakh yearly maximum allowed under the Sukanya Yojana. Even so, you might think about putting a lesser portion of the portfolio in equities funds if you want to preserve more for her.
Consequently, choosing between the two shouldn’t really be necessary. Both may be relevant to your portfolio. Furthermore, even though the Sukanya Samriddhi Yojana is a fantastic tax-free loan alternative, you shouldn’t depend entirely on it for your daughter’s future. When your daughter needs money to launch her career, you should supplement your Sukanya payments with SIPs in equity funds to make sure you have enough saved.
