As a parent, my priority is to safeguard the financial future of my one-year-old daughter. I am currently contemplating different options such as investing in mutual funds, purchasing stocks or considering Sukanya Samriddhi (SSY). My budget for this purpose stands between 1-2 lakhs per annum.
I truly value your suggestions and advice regarding the best course of action to attain sustainable growth and stability.
Update:
Thank you all for your valuable advice and suggestions on this ❤️
Your insights have been incredibly helpful, and I appreciate the support!
Finance
Apart from investments, I would give below suggestions.
1. Open SSY account.
2. Take Aadhar card and passport.
3. Create Gmail and upload your daughter pics regularly to google photos section.
100% allocation in Mutual Funds
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.
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