6 days ago
Experts Outline Investment Plan for ₹10 Lakh Daughter Corpus
Parents have ₹10 lakh that they want to use for their five-year-old daughter’s future.
They may have around 13 to 15 years before she reaches graduation.
Experts say the money should be spread across different types of investments instead of placed in just one.
Equity and index funds may help the money grow over a long period, but their returns can rise and fall.
Sukanya Samriddhi Yojana is described as a safer government-backed option with a current interest rate of 8.2%.
Parents can deposit up to ₹1.5 lakh each year in that scheme.
Term insurance can help protect the child’s plans if something happens to the parents’ income.
As the daughter gets closer to age 18, the investment mix can gradually become safer.
The examples of future values are estimates based on assumed returns, not promises.
Experts recommend treating the ₹10 lakh as a diversified portfolio rather than investing it in one product.
Suggestions include allocating about 65–70% to diversified equity or index funds for long-term growth.
Sukanya Samriddhi Yojana is presented as a safer, tax-free option currently offering 8.2%, with annual deposits capped at ₹1.5 lakh.
Illustrative 20-year outcomes range from about ₹39 lakh in a 7% fixed deposit to nearly ₹96 lakh in equity mutual funds at 12%.
Experts also stress term insurance for parents and shifting toward safer assets as the daughter approaches age 18.
- Who
- Parents planning for their five-year-old daughter, with views from Rishi Mathur, Nikunj Saraf, Kapil Makhija and Adhil Shetty.
- What
- Experts have outlined ways to invest a ₹10 lakh corpus for a daughter’s education and other long-term needs.
- Where
- The recommendations concern investments available in India, including Sukanya Samriddhi Yojana, equity funds, fixed deposits, gold and listed REITs.
- When
- The suggested horizon is about 13 to 15 years until graduation, while some comparisons show potential values after 20 years.
- Why
- To combine long-term growth, capital safety and protection of the parents’ earning power for the daughter’s future.
Growth-focused allocation
Safety-focused allocation
Role of equity
Growth-focused allocation
Nikunj Saraf recommends putting around 65–70% into diversified equity and index funds, while Adhil Shetty suggests ₹7 lakh in diversified equity mutual funds for long-term compounding.
Safety-focused allocation
The safety-oriented approach limits market exposure and emphasizes a government-backed girl-child savings scheme for capital security.
Role of Sukanya Samriddhi Yojana
Growth-focused allocation
Growth-focused recommendations use Sukanya Samriddhi as a stable part of the portfolio while allowing equity to serve as the main growth engine.
Safety-focused allocation
Safety-focused recommendations give Sukanya Samriddhi a larger protective role, with Shetty proposing ₹3 lakh in the scheme and describing it as guaranteed, tax-free safety.
Managing risk over time
Growth-focused allocation
The growth approach favors staggered equity investment through a systematic transfer plan, annual rebalancing and continued exposure to market-linked assets.
Safety-focused allocation
The more cautious approach prioritizes certainty and recommends shifting toward safer assets as the daughter approaches 18.
Key facts
- Starting corpus
- ₹10 lakh
- Child’s age
- 5 years
- Suggested investment horizon
- About 13 to 15 years until graduation
- Sukanya Samriddhi rate
- 8.2% currently, described as tax-free
- Sukanya annual deposit cap
- ₹1.5 lakh per year
- Illustrative fixed-deposit value
- About ₹39 lakh after 20 years at 7%
- Illustrative equity-fund value
- Nearly ₹96 lakh after 20 years at 12%
Quotes
Kapil Makhija
COO at MinEMI
“Rather than asking which product, ask what ₹10 lakh becomes in 20 years under each. In a fixed deposit at 7%, it grows to about ₹39 lakh. In gold at its long-term 9%, about ₹56 lakh. In Sukanya Samriddhi at today's 8.2%, roughly ₹48 lakh, though deposits are capped at ₹1.5 lakh a year. In equity mutual funds at 12%, close to ₹96 lakh.”
livemint.com
“For a five-year-old daughter, ₹10 lakh should be designed as a portfolio, not parked in a single product. The first layer must protect the parents' earning power through adequate term insurance. The remaining corpus should balance market-linked growth with guaranteed, long-term savings, aligned to milestones such as higher education.”
livemint.com
Sources
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