SSY vs Equity Mutual Fund – Where to Invest for Higher Returns?

New Delhi:

As we celebrated National Girl Child Day on January 24, the focus was on securing a bright future for our daughters.

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If you’re contemplating investment options, two prominent choices are the government-backed Sukanya Samriddhi Yojana (SSY) and Equity Mutual Funds.

Let’s delve into these options to help you decide where to invest for potentially higher returns.

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Sukanya Samriddhi Yojana (SSY):

Interest Rate

SSY currently offers an 8.2 percent interest rate, revised quarterly by the government.

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Investment Details

You can start this government scheme with just Rs 250 annually. The account can be opened anytime from the birth of your daughter until she turns 10, with a maximum annual deposit limit of Rs 1.50 lakh.

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Lock-in Period

No withdrawals are permitted until your daughter turns 21, making it a fixed-income facility.


Equity Mutual Funds:

Risk and Returns

Equity mutual funds involve investing in the stock market, carrying a certain level of risk. However, they have shown attractive returns, as seen in the last year’s data.


Recent Returns

According to AMFI data, various equity mutual funds have provided substantial returns in the last year. For example, Nippon India’s Value Fund and Aditya Birla Sun Life Pure Value Fund have shown returns exceeding 40 percent.

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Mutual funds are liquid instruments, allowing for flexibility in withdrawals.

Choosing the Right Path:

Your decision depends on your risk appetite, investment horizon, and financial goals. If stability and a fixed income suit your preference, SSY may be the right choice.

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On the other hand, if you are comfortable with market fluctuations and seek potentially higher returns, equity mutual funds could be a suitable option.

National Girl Child Day Significance:

National Girl Child Day in India aims to support and promote the rights, education, and health of girls.

Celebrated on January 24 annually, it serves as a reminder to create awareness about the importance of empowering and nurturing our daughters.


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