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Analysing sukanya samriddhi yojna

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Abhishek Mittal
Abhishek Mittal

The document analyzes the Sukanya Samriddhi Yojna, a government scheme launched to promote girl education and marriage expenses. Key features of the scheme include accepting deposits until the girl is 14 years old, a 10 year maturity period, minimum and maximum deposit amounts of Rs. 1000 and Rs. 150,000 respectively, and an annual interest rate of 9.1%. However, the summary cautions that the scheme may not be optimal for meeting rising education costs and recommends equity funds or balanced funds as better alternatives to build wealth for a daughter's education over the long run.

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For Information contact us at contact@wallsofindia.con or call us at 96504 59955 K2/1, FF, DLF Phase – II, Gurgaon – 122008, Haryana, India Analyzing the Sukanya Samriddhi Yojna The Sukanya Samriddhi Yojna was launched by the government with aim to promote Girl education and fund her marriage expenses. The account is opened in the name of girl child of not more than 10 years of age and salient features are as follows: Parameters Sukanya Samriddhi Yojna 1. Tenure 21 years and accepting deposit till 14 years from date opening. 2. Tax exemption Yes, u/s 80C. 3. Minimum and Maximum amount Rs.1000 and Rs.1,50,000/- 4. Interest 9.10% and decided annually. 5. Pre mature withdrawal 50% amount when girl attains 18 years of age. 6. Maturity End of 21 years from date of opening / Girl is married before this tenure. Our call:-  Your reason for opening this account could be – Tax exemption for self and/or building wealth for your daughter.  For Tax purposes, many of you exhaust your limit (u/s 80C) in the form of ELSS/ PF /Life insurance and hence it can’t be used as a Tax saver product.  We feel it’s a product which is suited for low income families as they also get an additional benefit in form of tax exemption.  Considering the current education scenario, your daughter will require maximum support during her schooling& college days - where she needs to prepare for competition,go for educational excursions within and outside India, enroll in foreign or expensive Indian private universities, which this Yojna fails to gratify.  If genuinely you want to build wealth for your daughter for her education, the best way is Equity. The time horizon is long, no liquidity pressure and purpose is defined.  Start a SIP in an equity fund, dedicated to your daughter and let the compounding work its own way. Over the longer horizon, the equity returns surpasses debt, and volatility is nullified.  If one is risk averse, put atleast 50% in the Equity and 50% in debt or in a Balanced fund (Tax prudent) that will give you better returns than SSY and also the liquidity. If one can understand that Girl child is a boon in the house and she is not a burden in form of marriage expenses and her education, the scheme in itself shall not hold any weight.

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Analysing sukanya samriddhi yojna

  • 1. For Information contact us at contact@wallsofindia.con or call us at 96504 59955 K2/1, FF, DLF Phase – II, Gurgaon – 122008, Haryana, India Analyzing the Sukanya Samriddhi Yojna The Sukanya Samriddhi Yojna was launched by the government with aim to promote Girl education and fund her marriage expenses. The account is opened in the name of girl child of not more than 10 years of age and salient features are as follows: Parameters Sukanya Samriddhi Yojna 1. Tenure 21 years and accepting deposit till 14 years from date opening. 2. Tax exemption Yes, u/s 80C. 3. Minimum and Maximum amount Rs.1000 and Rs.1,50,000/- 4. Interest 9.10% and decided annually. 5. Pre mature withdrawal 50% amount when girl attains 18 years of age. 6. Maturity End of 21 years from date of opening / Girl is married before this tenure. Our call:- ï‚· Your reason for opening this account could be – Tax exemption for self and/or building wealth for your daughter. ï‚· For Tax purposes, many of you exhaust your limit (u/s 80C) in the form of ELSS/ PF /Life insurance and hence it can’t be used as a Tax saver product. ï‚· We feel it’s a product which is suited for low income families as they also get an additional benefit in form of tax exemption. ï‚· Considering the current education scenario, your daughter will require maximum support during her schooling& college days - where she needs to prepare for competition,go for educational excursions within and outside India, enroll in foreign or expensive Indian private universities, which this Yojna fails to gratify. ï‚· If genuinely you want to build wealth for your daughter for her education, the best way is Equity. The time horizon is long, no liquidity pressure and purpose is defined. ï‚· Start a SIP in an equity fund, dedicated to your daughter and let the compounding work its own way. Over the longer horizon, the equity returns surpasses debt, and volatility is nullified. ï‚· If one is risk averse, put atleast 50% in the Equity and 50% in debt or in a Balanced fund (Tax prudent) that will give you better returns than SSY and also the liquidity. If one can understand that Girl child is a boon in the house and she is not a burden in form of marriage expenses and her education, the scheme in itself shall not hold any weight.