Gift A Financial Investment This Festive Season; Here’s What To Choose From

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Since Diwali is already around the corner, it is a perfect time to buy gifts for your loved ones and even for yourself. But the best thing you can gift them this Diwali is some value-for-money product and something innovative, something that will definitely benefit them in the long run. Here we have shortlisted some financial gifts that you can gift your loved ones.

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PPF: Public Provident Fund (PPF) scheme is a popular long-term investment option backed by the Government of India which offers safety with an attractive interest rate and returns that are fully exempted from Tax. Any minor in the nation can open his PPF account. One also needs to note that the total contribution in parent’s and child’s account can be not more than Rs 1.5 lakh.

Sukanya Samriddhi Yojana: This is the best financial girl if you have a girl child since it offers tax-free returns. The scheme has an annual limit of Rs 1.5 lakh.

Stocks:  Shares can be transferred directly to the recipient’s demat account. All you need to do is send an instruction and the recipient will have to fill out a receipt instruction. The shares will then be credited to the recipient’s demat account.Image Source

Mutual Funds: If you are a parent, grandparent or an immediate family member, you now can invest via mutual funds in the name of minors. Immediate family members or the legal guardian can invest any amount on behalf of the minor but, for other related people, investment is capped at Rs 50,000 for every one-time purchase or SIP contribution.

Equity: If you assume a return rate of 12% on a monthly SIP of 5,000 in an equity fund when the child is let’s say 3-year-old, you can accumulate about Rs 23.8 lakh by the time he/she turns 18. Make sure that you are consistent with your SIP contributions because that will help you achieve the desired goal.

SWP: Since it not currently possible to invest in mutual funds in the name of adult children, spouse, siblings and parents, you can choose mutual funds which offer Systematic Withdrawal Plan (SWP) facility. SWP allows the investor to transfer a fixed amount from their mutual fund to the beneficiaries every month.

Insurance: You can gift your spouse an insurance plan that covers maternity expenses as well.



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