NPS Vatsalya versus Sukanya Samriddhi Yojana (SSY): After the launch of the novel NPS Vatsalya scheme which aims at securing child’s future financially, you as a parent may be wondering whether NPS Vatsalya or SSY will fetch a better return if you have to choose between the two.
Importantly, while the two schemes are not comparable with the SSY being sovereign-backed and the other a market-linked instrument, it will help us arrive at some estimates.
Just for assumptions, let’s say INR 10,000 is invested every year for the next 10 years (i.e., till the child is 18 years) in both these solutions, NPS will become ~INR 1.86 lacs while SSY will give a total of ~INR 1.58 lacs, assuming NPS grows at 11% CAGR and the interest rate for SSY continues to be 8.2%, added Alok.
Calculating the returns from NPS Vatsalya versus Sukanya Samriddhi Yojana
Here we are taking the tenure of investment as 15 years and the investment amount as Rs 10,000 per month.
So, in such a scenario, considering 12 per cent return per annum, with the NPS Vatsalya scheme an investor after a 15 year tenure will put in a total investment of Rs 18 lakh and on it his return will be Rs 32,45,660, taking the total corpus of Rs 50,45,760.
Nonetheless, in the case of SSY, while the corpus in 15 years would grow to Rs 34,56,412, the same would scale up even more at maturity after 21 years as the centre on this scheme offers the interest for 6 years without any additonal investment.
