'Sukanya Samriddhi won’t give your daughter ₹69 lakh': Planner alerts parents to inflation trap

Two of India’s most popular child investment schemes promise eye-catching returns—but what happens when you factor in inflation? One Guwahati-based planner is urging parents to take a closer look.

Gaurav Mundhra, a financial planner, took to LinkedIn this week with a blunt message: “Sukanya Samriddhi won’t give your daughter ₹69 lakhs. It’ll actually give her around ₹17 lacs—after adjusting for inflation over 21 years.”

The post compares the real-world value of long-term investments like Sukanya Samriddhi Yojana (SSY) and NPS Vatsalya to mutual fund alternatives.

Mundhra explains that while SSY projects a ₹69 lakh maturity if one invests ₹1.5 lakh annually for 15 years, that figure drops significantly—to around ₹17–18 lakh in today’s terms—once inflation is considered.

He applies the same lens to NPS Vatsalya, a child-focused variant of the National Pension System. Though it shows a ₹1.4 crore maturity, only ₹35 lakh is accessible upfront, which, adjusted for 6% inflation over 21 years, equals just ₹8.4 lakh today.

“Now ask yourself: Will ₹8L or ₹17L be enough for your child’s education or marriage two decades from now?” he asks.

Instead, Mundhra suggests children-focused mutual funds, which—at an assumed 12% annual return—can yield ₹1.4 crore before tax, translating to roughly ₹1.2 crore after tax, or about ₹34 lakh in today’s value.

“Don’t plan for big numbers. Plan for real value,” he advises.

Mundhra’s post echoes a growing sentiment among planners: that traditional schemes offer safety but may not deliver the purchasing power needed for long-term goals.