24 Best One -Time Investment Plan for Girl or Boy Child in India 2025

Best One Time Investment Plan for Child 2025, India

Raising a child is not easy at all, especially when inflation is on the rise. This is why you need to start investing as soon as you become a parent. Wondering what plans you can invest your money into? The most sought-after option these days is a one time investment plan for child. Wait! Before you go ahead with the one time investment plan for child, you must however first try to understand what it is. Well, in that case, keep reading to know!

As the name suggests, a one-time investment plan for the child means you pay a lump sum amount one-time through a policy term. Along with the life cover, the money keeps growing. As the child grows, the investment plan will keep supporting the child in each of his or her milestones in life.

Why is a One-Time Investment Plan Important for Your Child?

A one-time investment plan ensures that your child has financial security when they need it the most—whether for higher education, starting a business, or marriage. Unlike recurring investments, a lump-sum investment grows over time with compounding benefits, reducing future financial stress.

Key reasons why a one-time investment is essential:

• Long-term wealth creation
• Avoids the hassle of monthly contributions
• Tax benefits under Section 80C & 10(10D)
• Flexible withdrawal options
• Protection against inflation

By investing early, you give your child a strong financial foundation, ensuring they have the resources to pursue their dreams without financial constraints.

What is the Right Time to Start Investing for Your Children?

The best time to start investing for your child is as early as possible, ideally right after birth. The power of compounding ensures that even a small one-time investment can grow significantly over 15-20 years.

Why Start Early?

• More time for money to grow (e.g., ₹1 lakh invested at 10% for 18 years becomes ₹5.6 lakhs).
• Lower financial burden later in life.
• Flexibility to choose high-return investments (stocks, mutual funds) with time to recover from market fluctuations.

If you haven’t started yet, now is the best time—delaying by just 5 years can reduce returns by 30-40%.

Advantages of a One-Time Investment Plan for Your Child

1. Higher Returns with Compounding

• A one-time investment in equities or mutual funds can grow 5-10x over 15-20 years.
• Example: ₹50,000 in an ELSS fund at 12% return becomes ₹4.8 lakhs in 20 years.

2. Tax Benefits

• Plans like PPF, SSY, NSC, and ULIP offer tax deductions under Section 80C.
• Maturity proceeds are often tax-free.

3. Financial Discipline

• No need to worry about monthly SIPs or missed payments.
• Ideal for parents who prefer a hassle-free investment.

4. Emergency Fund for Child’s Needs

• Can be used for education, medical emergencies, or marriage.

5. Security and Stability

• Ensures financial security for your child's future expenses such as higher education, marriage, and other significant milestones.

3 Things to Consider While Making a One-Time Investment Plan for Your Child

1. Investment Horizon: Choose a plan based on your child's age and the time required for maturity.
2. Returns and Inflation Adjustment: Consider plans that provide inflation-beating returns to ensure your child's future expenses are met.
3. Liquidity and Withdrawal Options: Some plans allow premature withdrawals for emergencies, while others require a lock-in period. Choose based on your needs.

Best One-Time Investment Plans for Child in India (2025)

Investment Plan	Returns (2025)	Lock-in Period	Risk Level	Tax Benefits
Sukanya Samriddhi Yojana (SSY)	7.6%	21 years	Low	80C
Public Provident Fund (PPF)	7.1%	15 years	Low	80C
National Savings Certificate (NSC)	6.8%	5 years	Low	80C
ELSS Mutual Funds	10-15%	3 years	High	80C
ULIP (Unit Linked Plan)	8-12%	5 years	Medium	80C & 10(10D)
Fixed Deposit (FD)	6-7.5%	1-10 years	Low	Taxable
Post Office Monthly Income Scheme (POMIS)	7.1%	5 years	Low	Taxable
Sovereign Gold Bonds (SGB)	2.5% + Gold Appreciation	8 years	Medium	Tax-free after 8 yrs
Index Mutual Funds	10-12%	None	Medium	LTCG tax
LIC Child Plans (Bal Jeevan)	6-8%	10-25 years	Low	10(10D)
Commodity Funds (Silver/Platinum)	8-15%	None	High	LTCG tax
National Pension System (NPS - Child Account)	8-10%	Till retirement	Medium	80C & 80CCD
Real Estate (in child’s name)	8-12%	Long-term	High	Capital Gains Tax
Recurring Deposit (RD)	6-7%	1-10 years	Low	Taxable
Direct Stocks	12-20%	None	High	LTCG tax
SIP in Mutual Funds	10-15%	None	High	LTCG tax
Health Insurance for Child	N/A	Yearly	Low	80D

Key Milestones in Your Child’s Life That You Need to Plan For

1. School & Higher Education (5-18 Years)

• Estimated cost: ₹10-30 lakhs (for private schools & coaching).
• Best investments: FD, RD, Child Education Plans.

2. College & Professional Degrees (18-25 Years)

• Estimated cost: ₹5-50 lakhs (engineering, medicine, abroad studies).
• Best investments: Mutual Funds, Gold Bonds, ULIPs.

3. Marriage (25-30 Years)

• Estimated cost: ₹10-50 lakhs (depending on lifestyle).
• Best investments: Real Estate, PPF, SGB.

4. Emergency Medical & Career Support

• Critical illnesses or startup funding needs.
• Best investments: Health Insurance, Liquid Funds.