From one perspective, all gifts could be categorised in two baskets. The first category consists of those which can be consumed such as dresses and accessories, gadgets, consumer electronics items, mobile phones, gift hampers and of course food items. But there can also be a class of asset creating gift ideas for Diwali.
Instead of consuming, these gifts help to create assets and add to financial empowerment and multiply eventual happiness. With time, the number of possibilities is rising in the second category. Let’s have a look at what these can be.
Financial gifts for Diwali
Gold ETF: While gifting gold is a traditional practice for the well-heeled, gold ETFs (exchange traded funds) can be an excellent gift for Diwali. The recipient of the ETF must have a demat account. Gold ETFs track the price of the yellow metal and can be sold off any moment like ordinary shares. Unlike jewellery, the owner need not suffer from any safety or storage concern since ETFs come in demat form.
Fixed Deposits: Fixed Deposits, or FDs, are an excellent gift since they offer secure and predictable returns. Those who value safety of capital above everything else will see great significance in these instruments. FDs can be easily bought from banks.
Recurring Deposits: Recurring Deposits, or RDs, are another class of saving instrument that help in inculcating savings discipline. They can be opened in banks and/or post offices. Like FDs, RDs bear minimal risk.
Insurance Policy: One of the best gifts that one can make these days is buying a health insurance premium for a near and dear one. Single premium health insurance policies can be purchased. Rising healthcare costs can be such a drain on the pocket that a health insurance can be an appropriate gift. Another valuable gift can be a term life insurance. Compared to endowment policies, a term life insurance is cheaper, and a term policy can be gifted to a near and dear one to financially guard his/her life.
Sukanya Samriddhi Yojana (SSY): If you want to make a gift to a girl child, buying a Sukanya Samriddhi Yojana, or SSY, for her will be of great value to her. It carries an interest rate of 8.2%, which is just about the highest in the universe of guaranteed-return instruments in India.
