Is SIP in mutual funds better than Sukanya Samridhi Account ?

POSTED BY ashishphadnis ON February 6, 2015 8:33 am COMMENTS (14)

How do you compare Sukanya Samridhi account with PPF? PPF is still better or even if you open a SIP of Rs 12500/-pm in good MF at the time of birth of your daughter, you may get good amount.

14 replies on this article “Is SIP in mutual funds better than Sukanya Samridhi Account ?”

  1. Harikrishna says:

    Can you people can compare between three. Is the sip applicable for tds?

  2. Tanvi says:

    If you want guaranteed return then better to go for PPF/SSY. According to me, PPF is better.

    If you can keep an eye on the market and invest in SIP then certainly SIP or random amount invested regularly in mutual fund can give more benefits than these 2.

    Government is decreasing interest rates for both PPF as well as SSY so can’t count guaranteed return in any of these.

  3. This yojana offers small deposit investment for a girl children as an initiative under “Beti Bacho Beti Padhao” campaign.It is tax free small saving scheme for a girl child, The process of opening Sukanya Samriddhi Yojana account is simple and not much documentation required in general.

  4. Ritesh says:

    If there is a change of government,will the scheme still continue or is there a possibility of the scheme been shut as has happened in the past?

  5. Ajeet says:

    Before talking any decision consider inflation. Let’s take an example. If you plan to invest 5000/-pm. According to SSY you can contribute upto 14 years. At a rate of 9.1% it will become 17 Lac. It will further grow till 21 years. It will finally become 32 Lac. Now take the inflation at a modest 7% and your whole 32 Lac becomes 7.7Lac.? Your total contribution was 5000x12x14 = 8.4 Lac. Oops. Your return has not able to beat the inflation.

    1. Aparna says:

      Ajeet
      Can you explain this in little detail. If the above senario is considered then PPF is worse than Sukanya Samriddhi. How to really understand the impact it has . As of today i dont have 7.7 lacs saved for my daughters . In such case is this comparision possible.

      Aparna

      1. Ajeet says:

        Do not dig into maths. It is only a matter of equity and debt. Ppf and SSY both form a debt portfolio. Debt won’t beat inflation over a long run. But if you feel comfortable with it you can opt for SSY.

  6. Sameer says:

    Great initiative by Govt however their should be an online mechanism to opt for the same. It is difficult to deal with bank especially when they are clueless and least interested.

    1. Sameer

      Thanks for sharing your views.

  7. NishaSahaay says:

    You can check comparison between PPF and Sukanya Samriddhi Yojana here http://www.sukanyasamriddhiaccount.net/compare-ppf-ssy.html

  8. NishaSahaay says:

    I think, investing in SSY is much more better than provident funds or in SIP. The advantage is that interest rate. Sukanya Samriddhi Yojana offers more interest rate 9.1 % where provident fund of fixes deposit will give you final amount with an interest of around 8 %. In addition to this government also start providing tax deduction for this account under section 80 C of the income tax act 1961. I will suggest you to invest under Sukanya Samriddhi Yojana. For more details you can also visit

    http://www.sukanyasamriddhiaccount.net

  9. sunilg says:

    i feel that PPF option is good, as
    1) you can withdraw if required after 6th year,
    2) Maturity amount is tax free
    3) you can deposit online
    4) loan facility

    For sukanya samriddhi account
    1) you can not withdraw
    2) maturity amount is taxab;e
    3) online deposits are not allowed

    For Mutual funds
    1) rate of return can not be guaranteed
    2) if at the time of maturity, if it is bearish phase of market, then returns are alsp poor.

    1. Purna says:

      For sukanya samriddhi , maturity amount is not taxable..

  10. yes – I think SIP would be a better choice for such a long term investment . However not everyone would be comfortable with SIP option as lot of investors want guaranteed returns !

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