Systematic Investment Plan vs Sukanya Samriddhi Account

I found couple of queries related to a comparison between Sukanya Samriddhi Account Vs SIP or Mutual Fund Investment. Many people want to know that as the investment period is very long, then which one would be the best investment option for long term. In this article I will try to answer this query, hopefully it will useful.

SIP Vs Sukanya Samriddhi Account

First of all let me tell the basic difference between this 2 investment products in India. SIP is a stock market investment via Mutual Funds on a regular basis. When investment in SSA is 100% debt, not stock market component.

As per the current interest rate, one will get 9.1% of interest on the deposited amount on SSA and the tenure will be max 21 years. You can check out the details already mentioned about the SSA maturity and return calculation in our website.

Now when you invest in stock market for long term which is more than 14-15 years, as per historical data the return is huge, around 14% which will not only tackle the inflation buy also grow your money. But in case of a debt investment tool where the interest rate is flexible, in the long run the return will hardly be able to beat the inflation + tax. That means return will be very less.

But, if you are happy to invest in a debt tool without taking much risk, SSA is better for you, as stock market investment is subject to market risk. But personally, I believe in vesting in Mutual Fund for such a long period will definitely give a solid return and one should take this risk.

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