SGB, SIP, FD to Insurance: Quick investment options you can gift your loved ones this Diwali and Dhanteras

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October 31, 2021 12:27 PM

Diwali, Dhanteras 2021 Investment Gift Options: Sharing gifts on Diwali and Dhanteras is an age-old tradition. In view of the financial difficulties faced by millions of people in India due to Covid-19 pandemic, this year's Diwali could be used as an opportunity to include investment products in the bouquet of gifts.

diwali dhanteras 2021 investment gift optionsRepresentative image

Sharing gifts on festivals like Diwali and Dhanteras is an age-old tradition. In view of the financial difficulties faced by millions of people in India due to Covid-19 pandemic, this year’s Diwali and Dhanteras could be used as an opportunity to include investment products in the bouquet of gifts.

There are several investment options that can help in making your loved ones wealthy in the long run. According to Vikas Singhania, CEO, TradeSmart, these are different times we are living in, especially with the threat of pandemics still lurking. A stable and secure financial future would be the ultimate gift to the family.

“With Diwali almost upon us, family members, especially the younger ones are waiting anxiously for their gifts. While it is important to maintain our culture and traditions, it is equally important to start new ones, especially those that will help improve the financial health of the family,” Singhania told FE Online.

Gift ideas

Talking about what investment options to share as Diwali gifts, Singhania said the first gift should be financial security for the family by protecting them from any liabilities – present or future. “This can be done by taking insurance at least to the liabilities one has so that in the event of an eventuality, the family is not burdened.”

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He further said that the next step should be to inculcate the habit of regular investments through systematic investment plans (SIPs).

“Gifting a SIP will give the push that is needed to start a habit. The asset in which to invest will depend on the goals one has set,” he said.

Further depending on the goals, one can invest in equities, mutual funds, gold through Sovereign Gold Scheme, fixed deposit, or any other financial instrument.

Pros and cons to consider

Singhania said the benefits of gifts like saving schemes are dependent on the receiver.

“If continued for a long time, the receiver can reap its riches. But as has been found, saving habits are difficult to implant. If discontinued, the benefits may be small and defeat the purpose.”

Gift of a one-time payment like a fixed deposit or shares has the limitation of size. However, though it may seem small at the time of investment, it can give good compounding returns if held for a long time.

ALSO READ | Use festivals to make your kids money-wise; here’s how

There are several investment options that not only help in growing wealth but also in saving taxes. Many of these options like PPF, National Savings Certificate, NPS, ELSS and Life Insurance provide tax benefits under Section 80C and 80D of Income Tax Act, 1961.

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