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:-
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.
