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With the birth of a daughter, many responsibilities also fall upon the parents. Every parent wants their daughter's future to be secure and bright. However, a substantial amount of funds is required for all her needs, from higher studies to marriage. For this, investment planning is essential from childhood. In this situation, two excellent options emerge: Sukanya Samriddhi Yojana (SSY) and SIP (Systematic Investment Plan). Both of these investment options are excellent, with distinct advantages and disadvantages. But to see which scheme will prove better in terms of returns, see the calculations for an investment of ₹2,000 per month.

What is Sukanya Samriddhi Yojana (SSY)?

This scheme is a government scheme specifically for girls. Parents or guardians can open an account in their daughter's name. You have to invest in this scheme for 15 years, but the scheme matures in 21 years.

Investment amount: Minimum ₹250 and maximum ₹1.5 lakh annually.
Interest rate: Currently 8.2% (for the October-December 2025 quarter).
Maturity: 21 years
Tax benefit: Up to ₹1.5 lakh exemption under Section 80C.

If you deposit ₹2,000 every month,
Annual investment = ₹24,000
Total investment in 15 years = ₹3,60,000
Maturity amount after 21 years = ₹11,08,412 (at an interest rate of 8.2%).
This amount is completely tax-free, and returns are guaranteed because it is a government scheme.

What is a SIP (Systematic Investment Plan)?
SIP is an investment method in which a fixed amount is invested in mutual funds every month. This method earns market-related returns. SIP is considered quite effective over the long term.

Investment amount: You can start with ₹500.
Returns: Up to 12% (long-term returns).
Lock-in period: Flexible, you can withdraw funds at any time.
Tax benefits: Up to ₹1.5 lakh exemption under Section 80C only for investments in ELSS funds.
If you invest ₹2,000 every month in a SIP for 15 years,

Total investment = ₹3,60,000
If the average return is 12%, the maturity amount = ₹9,51,863.
If the average return is 14%, the amount can reach ₹11,30,414.

If this investment is continued for 21 years,
Total investment = ₹5,04,000
If the average return is 12%, the maturity amount = ₹20,86,013
If the average return is 14%, the amount can reach ₹27,01,305.

SSY vs. SIP at a Glance
Features: SSY SIP (Mutual Fund)
Type of investment: Government scheme, market-based
Returns: Fixed interest rate (8.2%), 12% (estimated)
No risk, there is risk
Tax benefit: Full exemption under 80C, ELSS funds benefit under 80C
Lock-in period: 21 years, flexible
Liquidity: Limited, easy
Return stability: Guaranteed, market dependent

Which should you choose?
If you want safety and guaranteed returns, SSY is better. But if your daughter is young and you have a long investment horizon, SIP can give you higher returns. Smart investors use both options together.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.