SSY offers a secure and low-risk savings option specifically for the girl child's future with tax-free returns and a long lock-in period.
ELSS provides potential for higher returns through equity investments with a shorter lock-in period, suitable for individuals looking for tax-saving investment options and willing to take on higher risk.
%20vs%20ELSS%20(Mutual%20Funds).webp "Sukanya Samriddhi Yojana (SSY) vs ELSS (Mutual Funds)")
SSY offers a secure and low-risk savings option specifically for the girl child's future with tax-free returns and a long lock-in period.
ELSS provides potential for higher returns through equity investments with a shorter lock-in period, suitable for individuals looking for tax-saving investment options and willing to take on higher risk.
Sukanya Samriddhi Yojana (SSY) vs. Equity Linked Savings Scheme (ELSS)
| Feature | Sukanya Samriddhi Yojana (SSY) | Equity Linked Savings Scheme (ELSS) |
|---|---|---|
| Purpose | Long-term savings for a girl child | Wealth creation through equity investments |
| Eligibility | Girl child below 10 years | Any individual with KYC compliance |
| Minimum Investment | ₹250 per financial year | Varies by fund (typically ₹500 or ₹1,000) |
| Maximum Investment | ₹1.5 lakh per financial year | No upper limit |
| Interest Rate/Returns | 7.6% (subject to change quarterly) | Market-linked (historical average 12-15%) |
| Investment Period | 15 years of deposits; matures after 21 years | Minimum 3 years lock-in period |
| Lock-in Period | Until the girl child turns 21 years | 3 years |
| Risk Level | Low (government-backed) | High (market-linked) |
| Tax Benefits | Under Section 80C, interest and maturity tax-free | Under Section 80C, returns taxable as LTCG |
| Liquidity | Low | Moderate (after 3-year lock-in) |
| Account Operation | By guardian until the girl turns 18 | Self-operated |
| Investment Management | Managed by the government | Managed by professional fund managers |