New Born Baby Investment Plan – Best Investment Plans for a New Born Baby in India, 2022-23

1502

6 min read

Updated on Jan 11, 2023

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 a newborn girl child.

Best Investment Plan for New Born Baby in India

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 newborn baby girl is simply impossible. Thus, all you should care about is saving 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 newborn baby investment plans that a parent of a newborn girl child can choose to invest in.

PayBima's Khushi Ka Tohfa

Visual Stories by PayBima

What are the Different Types of Investment Plans for New Born Baby or Child in India?

To answer your query on the best investment plans for a 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 policy 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 investment plans that you would like to invest in for your newly born girl child as provided by leading companies in the country.

Plans Interest rates
Sukanya Samriddhi Yojana (SSY) 7.6%
Children Gift Mutual Fund 
National Savings Certificate (NSC) 7.6%
Post-Office Term Deposit (POTD) Fluctuates
Unit Linked Insurance Plan (ULIP)  Varies
Systematic Investment Plan (SIP) Varies
Post-Office Recurring Deposit  5.8%
Public Provident Fund (PPF) 6.4%
Gold ETFs Fluctuates
Fixed deposit (FD) 6.5% (varies from bank to bank)

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

Top 4 Investment For Newborn Baby or 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 the 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

Also Read: Best Insurance Policy For New Born Baby in India

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 is the best investment for newborn baby in India with high returns that fulfill 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 INR 500 per year

Also Read: Where to invest 1 lakh

3. Post Office Savings Account

This is an 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 – 

  • Offers a 4% per year interest rate on deposit
  • You can open the account with INR 500 as the minimum deposit
  • However, the account has no upper limit for deposit
  • As the girl child turns 18, she can fill a new application with KYC documentation.
  • This is the safest savings scheme as well as an affordable one

Also Read: Post Office Scheme For Boy Child

4. Fixed Deposit (FD)

Fixed Deposit, also called FD, is yet another saving plan which is apt for a girl child. Although the interest rate of FD is not that great, it can help parents to save money. Also, FD is zero-risk.

Investment Type – Savings Account

Features –

  • You can deposit money only once
  • The rate of interest is 6.5%. However, it may vary from one bank to the other
  • The duration of an FD account can be 7 days to 10 years
  • Upon maturity, you can renew your FD
  • If you withdraw the money in case of an emergency, you have to pay a penalty.

Top 4 ULIPs Investment Plan for New Born Baby 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.

Also Read: 2cr FD interest rate

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.

Also Read: Post office gram suraksha scheme

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 online term insurance protection as well as the life security of your daughter.

Also Read: ULIP calculator

Top 2 Education Plans for New Born 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 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 the 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.

Read More: Why Invest in Child Insurance Policy?

Conclusion

Besides the above plans, you can also invest in mutual funds for your newborn 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 in 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 serve your purpose best.

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

FAQs on New Born Baby Investment Plan in India, 2022-23

Which investment is best for a baby?

To start investing for your baby, it is best to consider the following options:

1. Gold
2. Post Office Provident Fund Account
3. Fixed Deposits (FDs)
4. Life Insurance Policy
5. Mutual Funds

Which mutual fund is best for a newborn?

There are quite a many options when considering investment in mutual funds for a newborn. Some of these are:

Aegon Life Rising Star Child Insurance Plan
Exide Life Wealth Maxima Child Plan
LIC - New Children’s Money Back Plan
PNB Metlife Smart Child Plan
Sahara Ankur Child Plan
SBI Life - Smart Scholar
Star Life Bright Child Plan
TATA AIA Super Achiever Plan

What is the best savings plan for a child?

It is always better to start saving for your child early on in life. Some of the best savings plans that you can invest in for your child include:

Sukanya Samriddhi Account
Public Provident Fund (PPF)
Gold Savings
Debt Mutual Funds
Equity Mutual Funds

Which fund is best for children?

If considering to invest in mutual funds for your child, do look at the following best fund options for higher future returns:

TATA Young Citizens Fund
ICICI Prudential Child Care
Axis Children’s Gift Fund
HDFC Children’s Gift Fund

Other Investment Products

May 19, 2022
SHARE THIS ON
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back