New Born Baby Investment Plan – List of Best Investment Plans for a New Born Baby in India, 2024

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Updated on Jan 10, 2024

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.

Overview to Best Investment Plans for Newborn Girl Child in India

The birth of a child brings immense happiness to a family. At the same time, it makes the parents responsible for securing the life of the child. To fulfill this responsibility, parents of newborn babies can invest in different investment plans. In this post, let us take a look at some of the best investment plans in India for your newborn girl child.

It is the responsibility of parents to ensure that they provide the best opportunities for their children to give them a good life and to fulfill their goals. If you became the parent of a girl child recently, you may choose to invest in a newborn girl child plan in India to give your daughter the life of her dreams. An investment made at her birth will fetch you enough money to fulfill her higher educational aspirations in the future to allow her the career of her choice.
So, what are the best possible ways to accumulate a corpus for your daughter’s future? Let us take a look at some of the investment plans for kids that parents of a newborn girl child can choose to invest in.

So, what are the different types of investment options for a newborn girl child in India?

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

When it comes to the best investment plan for my newborn baby girl in India, there are many good policies at present 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 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 your 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.

The table below summarizes some of the best investment plans that you would like to invest in for your newly born girl child as provided by leading insurance companies in the country:

Investment type

Best investment for newborn girl child

Features 

Risk profile

Education plans  – Aviva Young Scholar Secure Plan

– Bajaj Allianz Young Assure

– SBI Life Smart Champ

– These are savings cum insurance plans

– Offers assured returns on maturity

-Payout is offered on education milestones of the child

– Also presents accrued bonus

Low risk
Savings plans – Sukanya Samriddhi Yojana

– Post Office Savings Account

– PPF

– Provide guaranteed returns

– Account can be opened by parents/guardians on behalf of a newborn girl child

– Interest rates up to 8%

– Most plans allow partial withdrawals after a lock-in period

Risk-free
ULIPs  – SBI Life Smart Scholar

– ICICI Pru SmarKid Plan

– HDFC SL YoungStar Super Premium

– Max Life Shiksha Plus Super

– These plans serve the purpose of investment cum insurance

– A portion of the investment is invested in funds that are market-linked

– Allows higher returns depending on market performance

– Most of these offer premium waiver facilities in case of the death of a parent

– Tax benefits available

-Offers flexibility in fund management

High risk
Mutual Funds – Equity Mutual Funds

– Debt Mutual Funds

– Children’s Gift Mutual Funds

–  These are plans offering high returns depending on market performance

– Investment risks of the plan are born by the parent

– Offers long-term compounding benefits

Very high risk

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

Top 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?

Top 4 Savings / 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 Mutual Funds for Newborn Girl Child 

1. Equity Mutual Funds

Equity mutual funds allow better returns as compared to bank deposits and are best for long-term investment. These plans are best to save a corpus for the higher education of your newborn child as well as other needs. However, you should remember that the corpus accumulated out of this fund is taxed, which lowers the overall returns.

2. Debt Mutual Funds

In terms of risk profile, debt mutual funds are safer as compared to equity funds. Here, the sum is invested in instruments of fixed income like Government Bonds. These funds allow various advantages and are best for constant income with no market risks. They allow higher returns in a short time as compared to bank deposits.

3. Children’s Gift Mutual Funds

These investments can be used by parents to fund a particular goal like education or the wedding of their child. These investment plans for children are available with a lock-in period. They help in achieving the specific goal of the investment for the parents. Being hybrid plans they can be invested in equity as well as debt depending on the risk profile of parents.

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 plan, and choose the ones that serve your purpose best.

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.

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FAQs on New Born Baby Investment Plan in India, 2024

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
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