All parents want their children to have a promising future, so they start investing now. Let’s take a look at the best child investment plans available for such parents.
1. Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana, launched by the central government in 2015, is a significant step towards securing your daughter’s future.
This scheme is designed to provide substantial savings for parents who want to invest in their daughters’ future.
This account can be opened in the name of a girl child before age 10. It will earn good interest and provide tax benefits. You can start investing from Rs. 250 and save a maximum of Rs. 1.5 lakhs per year.
2. NPS Vatsalya: In the latest budget, the central government introduced a new scheme for children called ‘NPS Vatsalya’.
Parents can open an account in the name of children under 18, giving them the flexibility to start early.
Once the children become adults, the account becomes a normal NPS account, and the existing norms of NPS will also apply to this scheme.
3. Equity Linked Savings Scheme (ELSS): This scheme, which can also be invested in the child’s name, offers the potential for significant profits in the long run, providing parents with a confident investment strategy.
However, this scheme has a lock-in period of three years, meaning the money cannot be withdrawn for three years after starting the savings. It should be noted that the risk factor is a bit high.
4. Child Unit Linked Insurance Plan: Special ULIP plans for children also exist, but these have lock-in periods. These schemes are very useful in providing funds for children’s future needs.
Under Section 80C, you can avail yourself of tax benefits from the money saved for your children’s education after they reach 18 years of age.
This makes investing in these plans a secure way to save for your children’s future and a smart financial move.
Apart from these, mutual funds and other post office schemes can be used to save for children. Some money can also be saved in fixed deposits in banks in their name.