Sukanya Samriddhi vs PPF vs Child MF Calculator
Three ways to build your child's corpus, compared post-tax
Sukanya Samriddhi vs PPF vs Child MF Calculator
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yrs
%
%
Sukanya Samriddhi (8.2%, tax-free)
0
EEE, girl child only, matures at 21
PPF (7.1%, tax-free)
0
EEE, any child, 15-year lock-in cycles
Child equity mutual fund (post-tax)
0
higher expected return, but taxed on gains
In today's money (inflation-adjusted)
0
real purchasing power after assumed inflation
SSY's edge and its catch
Sukanya Samriddhi offers the highest guaranteed, fully tax-free rate of the three (8.2%, reviewed quarterly) — but it's only available for a girl child, capped at Rs 1.5 lakh/year, and locks in until she turns 21 (partial withdrawal allowed at 18 for education).
PPF works for any child, with a longer horizon
PPF is available regardless of the child's gender, offers a slightly lower but still fully tax-free rate, and runs in extendable 15-year blocks — well-suited to a longer savings horizon than SSY's fixed 21-year maturity.
Equity MF trades certainty for higher expected return
A child-focused equity fund has no government-backed guarantee and its post-tax outcome depends on markets and the 12.5% LTCG tax above a Rs 1.25 lakh exemption — but historically has outpaced both fixed-income options over horizons of 10+ years.
SSY modeled at the current 8.2% rate and PPF at 7.1% (both government-set, reviewed quarterly, subject to change), both fully tax-exempt under the EEE structure with no tax on maturity. Child equity mutual fund modeled at your assumed return, taxed at 12.5% LTCG above a Rs 1.25 lakh annual exemption assuming a single withdrawal (real-world staggered withdrawals could use the exemption more efficiently across years). SSY is capped at Rs 1.5 lakh/year combined across all daughters and matures when the girl turns 21 (partial withdrawal at 18); PPF runs in 15-year blocks extendable in 5-year increments. Not investment advice.