Seeking Investment Advice for my 1-year-old Daughter: Mutual Funds, Stocks, or Sukanya Samriddhi?

In my opinion try to divide investment into three parts -

Very long term - sukanya - 50%

Long term - PPF 30%

And risky ( stocks and mutual funds ) - 20% 

As kids will need money at various ages so plan accordingly 

Invest in mutual fund every year on her birthday

SSY and ppf comes under your allotment of 80c, if you file itr under old regime. FYI

35% in SSY

25% in index mf

20% in flexi

20% in smallcap

In 2 or 3 years flexi mf will have some nice gains which you can tax harvesting and use for her education.

Always keep track, and harvest tax gains  every year and reinvest.

After year 10 reduce riskier investments.

After 13, stop small cap, star moving funds to fds and liquids funds.

Never stop index and ssy(which should have more contribution % After year 8)

By the time, she is 18 you will have a nice sum to get her the education she wants.

SSY only for tax benefit

Rest all into MF..

I will suggest u to invest in a diversified portfolio.

1 lac - ppf (when she becomes 15-20 years, u will have enough corpus for higher studies or marriage maybe)(non taxable as well) this is safest of all.(also in odd situation u can even take loan from it)-

50k - sukanya samridhi

Rest 50k - into a large cap(or u can further diversify this into large/medium or multi cap).
#old school advice

after 20 years u will be having

ppf:

sukanya samridhi: (u will invest for 15 years and maturity at the end of 21 year)

21,97,690

and

mf (considering  12% basic interest)

₹40,96,506

remember on mf u will be taxed

at the end of 20-21 year, ur investment of 30 lac will become 1,07,35,055 (excluding tax and inflation.)

Ps- consult some professional, don't seek advice from morons like me.

and Many many congratulations for the baby girl  @mr.unknown7

I will be investing in SIP in a small cap mutual fund as it will be for 20 years

I have hdfc life and sbi life agents. Seems sbi smart champ and scholar seem useless low growth with growth and guarantee funds.

Just take normal Wealth builder with Midcap and Equity funds with more growth. Can withdraw profit in 5 year without fine (even though says 12-30 years). And you dont need daughter/son for this

Go thru SIP route for direct MFs  that at least give 15% returns. Better contact professionals
CC: @third.i.financial.advisors

I believe SSY because income from SSY is not taxable and 80c is additional benefits so 8.2% from SSY is around 11-12%  guaranteed return and 1.5lakh sum annually is good investment for your remaining 20 years.

Niftybees , and there are stock whose cagr is 16% above  ucan invest in those stocks ...

SSY only for tax benefit max  (20% debt) rest 80 % equity

breakup of equity :

large cap  index fund (50%)

midcap funds (20%)

smallcap funds (30%)

returns of ssy vs equity mf on 1 lakh investment for 15 years. actually returns will be more as after 15 years you take the amount and do fd at a nominal rate of 6%

return of ssy approx 45 lakh and return of mf/fd  approx 67 lakh.

for more advice PM me.

mf for 15 years

fd for 3 years

instead of buying Gold jewellery for your daughter invest in Soverign Gold Bond. as much as you can as SIP. and accumalte.

and convert in to jewellery when she gets older.

SGB is issued by Reserve bank ,so safe.   No GST on purchase.  and also yeilds 2.5% interest per annum.

and on redemption it is completely tax free

Is there a similar scheme as SSY for baby boy ?

rather concentrate on good & humble upbringing and invest in value time with her by traveling,  vacation, good food, and necessay liesure activities.

Savings wont change fate; so rather cherish whatver little time we all have.

sukanya samriddhi first. Then as you earn more over the years, all should go to mutual funds and sgb.

I am a stocks guy. Buy her stocks man. She ll thank her daddy one day. 😊😊😊

Sukanya Samridhi Yojna give 8.2% interest. So, don't go bonkers on this. I will say 40~45% allocation should do alright.

Keed FDs and in the event of market crash buy stocks and equity mutual funds.

1. SSY - 1.5 Lakh/yr

2. A pure term Plan of 1 cr for 20 yrs on your life with daughter as the nominee

Of the remaining available funds,

50% in SGB - preferably bought in secondary market for staggering, to be held till maturity and reinvested on maturity

20% in equity based MF

20% in debt based MF

10% in bank FD

Sip every month in index fund ELSS by Zerodha. Lowest cost and very good returns over long term with minimal risk.

U can claim 1.5 lakhs deduction also if filing under old tax regime.

Have a plan after going through this video (

Sukanya Samriddhi is must to buy policy for those. Who are having a baby girl

If you are salaried and your EPF contribution is less than Rs. 2.5Lac, go for VPF (Voluntary PF cut) up to total of Rs. 2.5Lac as that give your best return but yes, you do not get pleasure to see separate fund in the name of your daughter.

Then Go for Sukanya as you can only make investment till 14 years so given the limited window maximise on this safe, and decent tax free return, if you look at return net of tax this is best Fixed Income option after the above VPF option exhausted.

Go for PPF only after she turns 5 to 7 not for return purpose but to make sure that when she comes to earning age, she does not have lock in of 15 years and can choose to keep or close.

Last is Equity and depends on Risk appetite. 1.5 gone in Sukanya, as your income increases have no limit to increase VPF, start in Equity Diversified Mutual fund of three types, Large cap, Mid and small cap and Multicap.

Best and luck and invest in giving good values as your question suggest you have enough money to give education and information which is abundant in this world but there is no avenue to provide value system and character building which gives highest growth and sustainability in the long run even in the most difficult circumstances.

I have a 1yr son & this is how I'm investing for him since he was 6month.

So I have reserved 30k for him & I put him in any ipo I found can yield good return & sell on very first day.

(Put in saving account till next 15k & reinvest in ipo -keeping it in Idfc generates some  intrest)

3k/month in small cap - higher education

3k/month in mid cap - Marriage

3k/month in large cap - business capital/support if req.

2k/month in crypto ($) - enjoyment/holidays (After 21Yrs)

5k/gold with malabar - Marriage

I'm not very keen in traditional instruments like Fd's, liquid funds but open minded to reshuffle portfolio when req.

Apart from this I plan to invest my time with him which is rare this day due to our schedules/pressures/responsibilities

This is all great, all of you want to save for your children's education,  marriage, vacation etc., Truly commendable.

But are you saving for your retirement? Not taking about your pfs, that will not be enough.


Whatever you are putting aside for your children's future should match your retirement contribution atleast. So restructure that please.


Your children are not your retirement plan. Thinking your children will take care of you in your old age and neglecting retirement plans is a fools errand.


Education is the best gift you can give for your children. Others things, hope and trust your children will become independent enough to take care of themselves.


All personal opinions,  just for your consideration.

I will try to keep it simple, my preferance

1. SSY.    50% allocation

2. SGB. (Gold Bond)  20%

3  A Large/Flexi cap fund. 30%

For Kids future I will prefer a fixed asset with stable return, and SSY and SGB, within 1.5L investment SSY is the best,

I will prefer to take MF investment only of I have additional money, Gold is a Hedge against a equity/MF investment

More imp stay away from ULIP/LIC,  you can opt for PPF only if you cross 1.5L in SSY or for Boys.  In my opinion no point of taking debt investment more than 1.5L a year

Please diversify your Investment and invest for Long terms. You can use below mentioned investment tools - 

1) Safest mode - Sukanya Samiridhi Yojana - Invest 150,000 Per year. Do not go for PPF as it gives less interest

2) Mutual Fund - Mutual fund is giving very good return also these are safe. Invest in small cap, Flexi Cap, Mid Cap and blue chip fund. Select any 5 funds and start SIP.
3) Insurance policy - Take good insurance policy of LIC only like Jivan anand. Don't go for Pvt Insurance as after you, family is unable to fight with them for claim. Don't fall in their false date of 99% claim, IRDA registered company. 
4) Invest in Good Stocks - Start investing in only Good stock like Banks, Blue chip company, Tech company, PSU.

I am also investing in same manner except SSY for kids. In case you need any help, please ping me.

Equity Mutual funds are good. SSY is good for debt. If you can take risk, only mutual funds else mix of MF and SSY. Stocks is not worth for 2 lakh per annum.

How one can buy MF online for kids on Kids' name?