Mother’s Day Gift From SIPs To Sukanya Samriddhi Yojana (SSY): Top 5 Investment Options Work For All Busy Moms

From managing household responsibilities to balancing careers, mothers are the true multitaskers of every family. But while taking care of everyone else, it's equally important to take care of your own and your children's financial future. Whether you are a working professional or a homemaker, investing early and wisely can ensure a safer future. On the occasion of Mother's Day falling on 11th May, here are five investment accounts every mother should be aware of, based on the recommendations taken from an interview with Nehal Mota, CEO & Co-founder, Finnovate.

1. Mutual Funds - For Long-Term Wealth Building

Mutual funds are a smart way to grow your money over time. You don't need a large lump sum to begin. Starting a SIP (Systematic Investment Plan) - even Rs 5,000 or Rs 10,000 a month - helps you invest regularly without overthinking it.

Starting a SIP (Systematic Investment Plan) is one of the most flexible and effective ways to invest regularly. Even a monthly SIP of Rs 20,000 for 15 years can grow to around Rs 1.2 crore, thanks to the power of compounding.

For retirement, you can also opt for an SWP (Systematic Withdrawal Plan), which allows regular withdrawals while your money continues to grow. For example, if you invest Rs 1 crore in a mutual fund yielding 10% annually, withdrawing Rs 50,000 per month can still grow your corpus to nearly Rs 3 crores over 20 years.

Later, when you want to use this money (maybe post-retirement), you can opt for an SWP (Systematic Withdrawal Plan) to get a monthly income while the remaining money stays invested.

Worth knowing: Returns are linked to the market, so they can go up and down. But with patience and regular investing, mutual funds have historically delivered good long-term returns.

2. Gold ETFs or Gold Mutual Funds

Gold has touched Rs. 1 lac recently, and we all are wondering if it's the right time to invest in gold. In the long-run, gold is always a good buy. If you want to invest in gold, the best way is to invest in gold ETFs through gold mutual funds. You can directly invest in gold ETF via a Demat account or invest in gold mutual funds via SIP. Gold ETFs have given a return in the range of 14-15% in the last 5 years and 30-31% returns in just one year.
Gold acts as a hedge to your portfolio. Let it not exceed 10-15% of your entire portfolio.

3. Sukanya Samriddhi Yojana

Moms, if you have a daughter below 10 years of age, you can invest in the Government of India's Sukanya Samriddhi Yojana, which allows investment of up to Rs 1.5 lacs annually and you can earn a return of 8.2%. Let's break it down - if you invest Rs 1.5 lacs each year for 15 years, and then let it grow for another 6 years, you'll have around Rs 70 lacs by the time your daughter turns 21. This amount is completely tax-free.

You can use this money for your daughter's education, or anything else she sets her mind to.

4. NPS Vatsalya

If you have kids below 18 years, you can invest in NPS Vatsalya scheme. Contributions are eligible for tax benefits under section 80-C, and the scheme offers long-term retirement benefits. The returns here are market-linked i.e. based on your investments in equity and debt. It might give you a better return in the long-term.

Let's consider- for your newborn baby, if you are investing Rs.1.5 lacs annually for 18 years, your total investment of Rs 27 lakhs will be around Rs. 75 lacs. And if you stay invested till your child turns 60, the final amount could be massive - possibly in crores.

And you can withdraw upto Rs.2.5 lacs lumpsum, and the remainder can go in a pension plan for your child. If the investment continues until age 60, the corpus accumulated will be Rs.50 crores.

One more thing: You also get tax benefits under Section 80C when you invest in this scheme.

5. Bank FD

Fixed deposits offer safety and stable returns. One should allocate some portion of their portfolio to an FD to provide safety and balance. The interest rate applicable when booking an FD is maintained throughout the chosen tenure, and therefore, it is easy to estimate the returns on maturity.

You have always put your family first. It's time to invest in all of your future needs if not done already. Start by creating a financial plan for yourself, list down your and your family's goals, current financial situation and work towards how much you need to invest to reach your financial goals. Make sure your investments have proper goals and targets set to get yourself into a disciplined approach, because ad-hoc investments will not give you the expected results. Do approach a financial advisor if you are uncertain about the next steps. But start somewhere, even if it is a small amount, it can create a huge impact in the long-term.