As we are approaching New Year, we can seek unique ways to express our joy and love for our near and dear ones. Gifting is one of them. While traditional gifts hold their charm, financial gifts can set the tone for a prosperous and secure year ahead. In a country like India where financial stability is esteemed, these gifts not only convey thoughtfulness but also contribute to the recipient's long-term financial security and growth. So, before choosing any financial gift, understanding the recipient's financial goals, risk appetite, and preferences is crucial to ensure the gift aligns with their aspirations and needs.
Financial gifting can offer various benefits. It is essential to approach financial gifting thoughtfully. You also have to consider the tax implications, your own financial situation, and the impact it might have on the recipient's life. From practical investments to educational opportunities, here are several financial gift ideas that you may consider for your dear ones in 2024.
Encouraging financial discipline and wealth creation, gifting a Systematic Investment Plan (SIP) in a mutual fund can be an excellent way to introduce someone to the world of investment. SIPs enable regular investments in a chosen mutual fund scheme and can yield significant returns over time.
Considered an auspicious asset in Indian culture, gifting gold in various forms such as coins, bars, or jewellery continues to be a popular choice. Additionally, investing in gold schemes like sovereign gold bonds or gold exchange-traded funds (ETFs) offers a secure and appreciating asset.
Fixed Deposit or Bonds
You may contribute in providing stability and assured returns, gifting a fixed deposit (FD) or government bonds can be a prudent choice. Banks offer various FD options, allowing the recipient to select the tenure and interest payout frequency based on their preference.
You can also support a child's future education by contributing to a dedicated education savings plan that can be a heartfelt gift for parents this New Year.
Life Insurance Policy can safeguard your loved ones from any financial crisis. This will not only provide financial protection in case of unfortunate events but also offers peace of mind. You can always choose a term insurance for a specific period or a whole life insurance plan that provides coverage for a lifetime. State-run insurance firms and several private insurance companies provide life insurance policy. You can visit their sites and check which one suits your need.
Prioritising health is paramount. You can always make health insurance or an investment in health schemes for your near and dear one. This can be considered as a thoughtful gift to secure one's well-being.
For those inclined towards stock market investments, gifting shares of reputed companies or introducing them to an equity trading account could be a valuable present. This allows individuals to participate in the stock market’s potential growth.
Planning for retirement is always crucial. You can always help your loved ones by by securing their future. Here comes an ideal present for them. Retirement benefit, which could be a pension scheme or a retirement savings plan, allows them to contribute regularly towards their future financial well-being. Government's National Pension Scheme (NPS) is one of them.
You can also engage a certified financial planner for a session or providing a subscription to financial planning services can empower individuals to make informed decisions about their money matters.
With the rise of digital assets, gifting a cryptocurrency wallet or a starter kit in popular cryptocurrencies such as Bitcoin or Ethereum might interest tech-savvy individuals looking to diversify their investments.
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