SIP vs Sukanya Samriddhi Yojana: What’s Better for a Baby Girl in 2025?
Both SIP and SSY are great long-term options for securing your daughter’s financial future — but they serve slightly different purposes.
Option 1: Sukanya Samriddhi Yojana (SSY)
Key Features
- Government-backed savings scheme for the girl child only
- Current interest rate: ~8.2% per annum (revised quarterly)
- Investment allowed: ₹250 to ₹1.5 lakh per year
- Lock-in until 21 years from the date of opening
- Partial withdrawal allowed at age 18 for higher education
- Tax benefits under Section 80C (EEE status – exempt at all stages)
Best For
- Parents looking for a safe, tax-free, and fixed-return investment
- Those who want to build a corpus for education or marriage
Option 2: SIP (Systematic Investment Plan in Mutual Funds)
Key Features
- Flexible investment option in equity or hybrid mutual funds
- Potential returns: 10%–14% (depending on market)
- No strict lock-in; you can withdraw anytime (ideally after 5–10 years for better returns)
- Can start with as low as ₹500/month
- Taxable returns, though ELSS funds offer 80C benefits (up to ₹1.5L)
Best For
- Parents with a long-term horizon (10+ years)
- Comfortable with market fluctuations
- Looking for higher returns to beat inflation
Simple Example: ₹5,000/month for 15 years
| Investment Option | Total Invested | Estimated Return (at maturity) |
|---|---|---|
| SSY | ₹9,00,000 | ~₹19,50,000 |
| SIP @12% | ₹9,00,000 | ~₹25,00,000+ |
Note: SIP returns are not guaranteed, while SSY returns are fixed.
Conclusion: Which Is Better for a Baby Girl?
| Criteria | Best Option |
|---|---|
| Safety & Guarantee |  SSY |
| Higher Returns | SIP |
| Tax-free Maturity | SSY |
| Flexibility & Liquidity | SIP |
| Education Goal (Age 18) | Both (SSY partial + SIP SWP combo) |
Pro Tip: Combine Both!
You don’t have to pick just one.
Use SSY for guaranteed returns and tax-free maturity
Use SIP to grow wealth faster and beat inflation
Together, they make a powerful portfolio for your daughter’s future.
