GIFTING A FUTURE NOT JUST A PRESENT

GRANDPARENTS CAN BUILD LASTING LEGACIES WITH SMART, BALANCED INVESTMENTS LIKE SUKANYA SAMRIDDHI YOJANA (SSY), ULIPS, AND MUTUAL FUNDS

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Investments are largely driven by two crucial variables: knowledge and discipline.

If either of these is missing, the likelihood of an investment portfolio not yielding effective returns increases manifold.

Interestingly, an investor's approach to investment is often influenced by age. A young individual is typically more aggressive and willing to take risks in his/her portfolio. In contrast, a mature adult may adopt a relatively cautious stance. Then there is a segment of highly conservative investors - usually older individuals - who have begun thinking seriously about the financial future of their children and grandchildren.

Increasingly, many elderly investors are considering long-term financial planning for their grandchildren. However, not everyone is well-versed in the nuances of how to go about it. Let us explore some of the effective investment avenues available in the market for this purpose.

SUKANYA SAMRIDDHI YOJANA (SSY)

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India designed to encourage parents or legal guardians to save for the education and future needs of their girl child.

Let us understand a few key features of this scheme:

Who Can Open A Sukanya Samriddhi Yojana Account? Parents or legal guardians can open an SSY account in the name of their girl child

What Is The Age Criterion? The account can be opened anytime from the birth of the girl child up to the age of 10 years

When Does The Account Mature? The account matures 21 years after the account is opened by the parent or the legal guardian

How Much Amount Can A Person Deposit? Annual deposits can be made with a minimum amount of ₹250 and a maximum of ₹1.50 lakh per financial year