Most people are now looking for new ways to save money. So as to meet future financial needs. It is also important to protect yourself as well as your children financially. More care should be taken when investing for children. Investing soon (Invest) Should be planned with a cold mug at the place of doing. Here are some schemes that will work for your children’s future:
Public Provident Fund (PPF)
Public Provident Fund (PPF) can be invested for the better future of their children. PPF is also a traditional and popular means of investment. Their parents can also open a PPF account in the name of the children. PPF account can be opened for children below 18 years of age. The interest rate on PPF is currently 7.1 per cent. The maturity period of PPF account is 15 years. 1.50 lakh can be invested in it in a year.
If you invest more than Rs 1.50 lakh, you will not get interest on the amount. If you have two children, you can invest up to Rs 3 lakh by opening a separate PPF account. After 15 years you can withdraw the entire amount from the account at once. It can then be extended for 5-5 years.
Equity Mutual Fund (ETF)
Equity mutual funds can offer higher returns in the long run than any other investment option. In a mutual fund you can invest in installments through a systematic investment plan. If you seek the help of a professional financial advisor, investing in a mutual fund in the long run increases your chances of making a profit. If money is needed after 10 years for the needs of children, it would be better to invest in largecap funds.
Sukanya Samrudhi Yojana (SSY)
Under the Sukanya Samrudhi Yojana, any girl’s parents or legal guardians can open this account till the age of 10. Sukanya Samrudhi Yojana account can be opened in any government bank and post office branch. At present, the interest rate is 7.6 per cent. At least 250 can be deposited annually in Sukanya Samrudhi Yojana. A maximum of Rs 1.50 lakh is deposited annually under the scheme.
Under Sukanya Samrudhi Yojana, the benefit of tax exemption can also be given under Section 80C of Investment Income Tax X. The Sukanya Samrudhi Yojana can be invested from the day of opening the account till the end of 15 years but the account matures when it is 21 years old. 21 years after completion of 15 years of account Of that time in the account The money will continue to accumulate according to the fixed interest.