Would you suggest investing in Sukanya Samriddhi Yojana for my four-year-old daughter
No. I may sound counter-intuitive but let me explain this. The Sukanya Samriddhi Yojana (SSY) is nothing but a public provident fund (PPF) specifically for the girl child. There is no issue about the safety of it as it is provided by the Government of India. Also, there is no issue with the guarantee of returns and taxability. But the real issue is that when you are investing for such a long period of time, then my sense is that one should have some allocation to equity. I am not saying to invest 100 per cent in equity but depending on your comfort level, allocate some reasonable portion, say 60-70 per cent, to it. Doing so will definitely give you a higher return than SSY. SSY will give you a predictable return but it will be less and given the time frame, you should try and maximise it.