Best Children's Day 2024 Investment Options for Your Child’s Future

Children's Day 2024 is a special occasion to celebrate the innocence and potential of every child. For parents, it’s also a great time to think about their children’s future.

Planning for the future involves making smart investments in options like mutual funds, fixed deposits, and government schemes.

The government has introduced several schemes to help parents invest in their children’s future. Examples include the Sukanya Samridhi Yojana and NPS Vatsalya. As we celebrate Children's Day 2024, let's look at some of the best investment options to secure your child's financial future.

Top Child Investment Options:

1. PPF for Minors

A Public Provident Fund (PPF) for minors is a great way to save for a child’s future. It offers tax benefits, earns interest through compounding, and has a 15-year lock-in period. Parents can contribute, and withdrawals can only be made for the child’s benefit.

2. Bank Fixed Deposits (FDs)

Parents can open a fixed deposit (FD) in their child's name, with themselves or their partner as the guardians. Many banks offer child-specific FD schemes with higher interest rates, such as the PNB Balika Shiksha Scheme, SBI FD for Children, and Yes Bank Fixed Deposit for Children.

3. NPS Vatsalya

NPS Vatsalya is a government-backed pension scheme for minors. Parents can contribute a minimum of Rs 1,000 per month, with no upper limit. It offers long-term, market-linked returns and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

4. Gold ETFs

Gold Exchange-Traded Funds (ETFs) are a low-risk investment option compared to stocks. They provide better returns than FDs or savings accounts, allowing you to invest in gold and benefit from its price growth.

5. Children-specific Recurring Deposit Plans

Many banks offer Recurring Deposit (RD) plans for children, where parents make monthly deposits for a set period. These plans offer guaranteed interest rates and are a safe way to save for the future.

6. Mutual Funds

For those who can handle some risk, mutual funds are a good option for saving for children. They tend to offer higher returns than traditional savings options, with lower risk than individual stocks.

7. Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana is a government-supported savings scheme for a girl child. It offers tax benefits and high interest.

Parents can open an account with just Rs 250 before the child turns 10, helping to secure a financially stable future for their child.