Best Investment Plans for a Newborn Girl Child in India

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Top Investment Plans for Newborn Baby Girl in India

Parents of a girl child must invest in good policies to secure the future of their daughter with good higher education facilities. Read on to learn about some of the best investment plans for newborn girl child.

If you have become a parent of a newborn girl child, it is your responsibility to ensure that you provide the best of opportunities to your daughter in terms of fulfilling her educational goals and aspirations.  Of course, knowing the interest and aptitude of a new born baby girl is simply impossible. Thus, all you should care about is to save enough funds so that you can fulfill her dreams of seeking education in whichever field she wants when she grows up. So, what are the best possible ways to accumulate a corpus?

Here in this blog, we are discussing some of the investment plans for kids that a parent of a newborn girl child can choose to invest on.

What are the Different Types of Investment Options for a Newborn Girl Child in India?

To answer your query on the best investment plans for newborn girl child in India, we would share some good policies that you can rely on.  These include both private as well as government investment policies. If you consider investing in equities linked to the market, you might be able to earn decent returns to help you generate enough money for your daughter’s future.

Further, you also have the option to buy an insurance policy with a combination of savings/investment plans.  Even the child education plans might serve fruitful as the best investment plan for kids in this case. Also, you can look for term insurance to secure her future after you leave the world for heavenly abode. In addition to these, you also have the option of exploring savings accounts and post office deposit schemes to gain further knowledge on the different investment policies that you can seek.

Below are some of the best investments plans that you would like to invest on for your newly born girl child as provided by leading companies in the country.

Also Read : 5 Best Investment Plans for a Girl Child in India 2022

Top 3 Savings Plans for Newborn Girl Child  in India

1. Sukanya Samriddhi Yojana

This is a plan crafted for young girls and was initiated by the Indian Government under the campaign called ‘Beti Bachao Beti Padhao’. Since this SSY account is available to girl children below the age of 10, it serves as a best policy for your daughter.

Investment Type – Savings Account

Features

  • Guaranteed returns
  • Parents can open the account on behalf of the newborn baby girl
  • Up to 7.6% interest rate
  • Allow partial withdrawal after completing the lock-in period

2. Public Provident Fund (PPF)

With a PPF account, parents of a girl child can invest their money for over 15 years, which is a long time. This best investment plan with high returns fulfills the requirements of the parents of a newborn baby well.

Investment Type – Savings Account

Features – 

  • Offers high rate of interest
  • Offers tax deductions
  • 7.1%. is the current annual compound interest rate on PPF
  • Serves as an ideal option for parents of girl child with low-income
  • You can start your investment with just Rupees 500 per year

3. Post Office Savings Account

This is a Indian post office scheme that allows parents to open an account on behalf of a newborn baby girl. This is regarded as one of the most affordable and best investment plans in India.

Investment Type – Savings Account

Features – 

  • Offer 4% per year interest rate on deposit
  • You can open the account with Rs. 500 as the minimum deposit
  • However, the account has no upper limit of deposit
  • As the girl child turns 18, she can fill a new application with KYC documentation.
  • These are the most safest savings schemes as well as affordable one

Also Read: 6 Post Office Saving Schemes for Childs in India

Top 4 ULIPs for Newborn Girl Child in India 

1. SBI Life Smart Scholar

This is a plan to secure your girl child’s future monetarily by initiating investments in bonds or other market-linked funds. This investment also allows you to receive an accidental benefit and waiver on premium payout among other benefits. So under this plan, if the parents die, the girl child receives a lump sum amount and future premiums are also waived off. However, despite this the policy still goes on till maturity.

2. ICICI Pru SmartKid Solution

This investment plan can be availed by parents to invest to secure money for the higher education of their girl child. This is a long-term plan associated with market- linked finances. This plan allows you to enhance funds through debt and equity.

3. HDFC SL YoungStar Super Premium

This is a financial protection plan meant for your girl child available with flexible benefits such as

  • Save Benefit and
  • Save-n-Gain Benefit

Here, the insured can choose four types of funds as per his/her needs, such as;

  • Income Fund
  • Balanced Fund
  • Blue Chip Fund, and
  • Opportunities Fund

4. Max Life Shiksha Plus Super

This is another unit-linked best investment plan that can help you in enhancing your wealth and serves the double purpose of life insurance protection as well as life security of your daughter.

Read More: Why Invest in Child Insurance Policy?

Top 2 Education Plans for Newborn Girl Child in India

1. Aviva Young Scholar Secure Plan

It will help parents to save enough to secure the higher education of their daughter even if you are not there in her life. Here, you pay the premium for a particular time period as per the age of the baby girl.  Under this plan, the child gets a particular amount as she turns 17 and gets a lump sum amount for higher education at 18 and 21 years for education purposes.

2. SBI Life Smart Champ

This is another good investment plan for kids. This  non-linked plan is crafted to protect the educational needs of your child in future and offers guaranteed benefits. At 18, the girl child receives the benefits of the plan in four installments, which can be used for her education.

Besides the above plans, you can also invest in mutual funds for your new born baby including Equity Mutual Funds, Debt Mutual Funds, Children’s Gift Mutual Funds and so on. So, all the above options are available for you to invest for the future of your newborn daughter. All you need is to compare the best investment plans, read and understand the plans and choose the ones that serves your purpose best.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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