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Parents need to think beyond just securing a wedding for the girl child and ensure safety for their daughter for contingencies such as a spouse that is not very supportive.
When a girl child is born, if a parent puts in 1 Lakh rupees, by the sheer power of compounding, by the time she gets married at age 25, there will be 1 crore corpus.
Assuming current rates of return and inflation, a parent can do a SWP of 12%. Therefore 1 lakh one time investment will give one 1 lakh perpetuity from age 25 ownwards.
If an additional Rs. 10,000 is put in every birthday, then that will care of inflation adjustment as well.
If the account is in both father and daughter's name, the corpus cannot be touched without both signatures. This can ensure peace of mind for the parent, while giving regular income and safety for the daughter.
I dont think the calculations are perfect. Approx 3.77 lakhs will be required to yield a corpus of One crore at age 25 of the child at 14% compounding. But its a beautiful concept Amit ji.
Really very good concept. Every parent will definitely accept and follow.
Excellent concept for providing financial security to a girl child , but doesnt agree with calculations @14% in 20 years it cant be 50-60 times but it would be only 26 -27 times..
