SIP vs SSY vs PPF: Which 21-year plan truly secures your daughter's future?

Don't want to miss the best from Business Standard?

When it comes to planning a secure financial future for children, most Indian parents turn to safe, government-backed schemes like Sukanya Samriddhi Yojana (SSY) or the Public Provident Fund (PPF). But new calculations shared by certified financial planner Vijay Maheshwari on LinkedIn, highlight how market-linked investments like Systematic Investment Plans (SIPs) could deliver far greater wealth over the long term.

 

According to his analysis, an annual investment of ₹1.5 lakh for 21 years grows to:

 

₹71.8 lakh in Sukanya Samriddhi Yojana

 

₹72.9 lakh in Public Provident Fund

 

₹1.37 crore through SIPs in mutual funds

 

That’s nearly double the wealth creation when parents opt for SIPs instead of traditional small savings schemes.

 

Maheshwari points out that while SSY and PPF provide safety and guaranteed returns, they come with capped growth. In contrast, SIPs harness the power of compounding and market-linked returns, allowing capital to grow much faster over two decades.

 

The data also shows similar trends for smaller investments. For example, a yearly investment of just ₹5,000 over 21 years would yield:

 

₹2.39 lakh (SSY)

 

₹2.43 lakh (PPF)

 

₹4.58 lakh (SIP)

 

Financial planners say the choice comes down to a family’s risk appetite. Those prioritizing guaranteed safety may still prefer SSY/PPF, but parents seeking true wealth creation for their children’s higher education, marriage, or future security may benefit more from SIPs.

 

“Start early, stay consistent, and let compounding do the magic,” Maheshwari advises.

 

Disclaimer: Mutual Fund investments are subject to market risks. Investors should read all scheme-related documents carefully before investing. 

Most families blindly choose SSY or PPF for safety. But let’s compare what really happens if you invest the same ₹1.5 Lakh every year for 21 years: