When it comes to planning your daughter’s future, it becomes important to decide between educational schemes & traditional investment plans. The CBSE Udaan Scheme for girls & traditional investment plans such as PPF, fixed deposits, insurance plans for a child, etc., though they have a common objective, work differently.
The central government or state government has introduced some schemes for the better empowerment of the girl child. CBSE Udaan Scheme was commenced by the Central Board of Secondary Education, i.e. CBSE, together with the Ministry of Human Resource & Development, i.e. MHRD, of the Government of India.
The main aim of an investment plan is to allow you to increase your wealth over a period of time & help you achieve long-term financial goals, like planning retirement, purchasing a house, ensuring children’s higher education, etc. Let us know which is the Best Investment Plan for the Girl Child through this article.
Features of CBSE Udaan Scheme
Provided are the features of the CBSE Udaan Scheme:
- This plan chooses a large number of girls to provide them with free-of-cost assistance, like study material, coaching, etc. This is to help them prepare for engineering entrance exams.
- This plan offers study material online to female students, which will help them prepare.
- This online portal also provides multiple tutorial videos & study materials.
- This scheme offers many virtual classes at around 60 locations in major cities in India.
- This scheme also provides girl students with tablets or financial support to buy one.
- Some of the girl students may also get the opportunity to attend an orientation programme to teach them how to use technology.
- Also, get multiple assignments that will offer constructive feedback to them.
- This plan ensures that corrective measures are being taken to rectify their earning process.
- The deserving girl students are then explained the benefits of mentoring & peer learning.
- In case you have any questions or need clarification, the student helpline facility is also available. Also, parents can track their child’s growth in terms of education using these support services.
- Feedback & suggestions would be provided to parents to track the progress of their children on a continuous basis.
- This plan also helps female students with the college application process.
- The girl students who have acquired above 75% in Udaan classes & have been awarded seats in NIIT, IIT, or any other Central-funded institutions are eligible to get financial aid.
Traditional Investment Plans Vs. CBSE Udaan Scheme
| Basis of difference |
Traditional Investment Plans |
CBSE Udaan Scheme |
| Objective |
It is meant for long-term financial planning, i.e. to meet education or any other objectives. |
It is meant to meet the educational & academic objectives. |
| Eligibility |
It is meant for all children, depending on the type of plan chosen. |
It is meant for female students only studying in standard 11 & 12th, depending on their merit & income. |
| Financial Benefits |
Accumulation of wealth over a period of time |
Free supply of resources along with academic support |
| Tenure |
Flexible, i.e. 1 to 15 above age group |
Short term |
| Return |
Financial growth along with interest |
Academic support in non-monetary form |
| Risk |
Low to Moderate |
None |
Different Investment Options in India
Let us go through the different investment plans available for children:
Term insurance plans offer financial security to the family members of the insured in your absence for a specified duration, as you have chosen. It provides vast coverage at a low premium, which can further be enhanced at a minimal cost.
This is a long-term savings plan designed by the Indian government that helps achieve financial objectives. It provides assured returns with a low-risk investment strategy. This plan can be opted for by those who want to invest an amount between INR 500 & INR 1.5 per annum. Also, the interest is exempt from taxes under section 80C of the Income Tax Act of 1961.
- Unit Linked Insurance Plans
This Investment Plan is a combination of both insurance & investment in a single plan. This means a part of the premium is assigned towards the life coverage, & the leftover premium can be invested in the selected funds, i.e. equity, debt, etc. This allocation can be changed as per the latest market conditions & trends or your investment objectives.
Under this plan, you can invest in the funds that suit your financial objectives. This means, as we know, that equities are market-linked & provide better returns, & on the other hand &, debts reap a fixed income with low risk. Hybrid funds offer a balance between the two.
These plans are meant to provide dual benefits, i.e. insurance & savings, which lets you save & provide financial security to the family members with the help of insurance. With these plans, you get guaranteed returns & customisable premium options available.
- Post Office Savings Scheme
It offers many deposit options to low-risk investors, which helps to build a financial corpus to achieve financial goals in case of emergencies. These are tax-saving investments, eligible to get a deduction in income tax, up to INR 1.5 lakhs u/s 80C.
They are primarily of two types:
Under this plan, save the amount regularly & get a massive amount at the time of your retirement. Invest the amount during the period when you earn & get regular income post-retirement.
Here, you are required to invest in a lump sum to get a fixed, regular income immediately or at a later stage. The income received can be used to maintain the present lifestyle or to fulfil your post-retirement dreams.
Under this plan, a part of your funds is allocated to equities, which can be used at the time of retirement to provide social security.
Here, you are required to deposit a fixed amount for a pre-determined tenure in a bank or NBFC to get the pre-determined amount at maturity. The investors here receive the principal amount along with the compound interest. They are considered to be low-risk investments with guaranteed returns.
Conclusion
If your objective is to provide academic support to your daughter, opt for the CBSE Udaan Scheme, as it offers free study material & academic mentorship. On the other hand &, if you want to build a strong financial support for your children along with flexible & long-term benefits, traditional investment plans can be opted for.