8 February 2023
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How To Choose The Best Financial Gifts For Your Loved Ones

BEST-FINANCIAL-GIFTS-FOR-YOUR-LOVED-ONES

If you wish to gift something special to a loved one, securing their financial future is the best way to show them how much you care. Financial gifts, like investments, have great potential to transform the lives of the recipients.

One of the great things about investments is that they have the potential to increase in value through interest, appreciation, or dividends. This is what makes them ideal as a gift.

If you’d like to give investments as gifts, here are some options you can consider to gift your loved ones:

#1. Buy Them a Medical Insurance

The cost of healthcare is on the rise. To top that, today’s lifestyle comprises of long working hours, lack of physical exercises, poor stress management, alcohol, smoking, junk food just adds additional risks to one’s health.

Read | 7 Tips for Securing Self-Employed Health Insurance

So consider gifting someone a health insurance policy by paying their premiums. If you are financially independent and considering to give a great gift to your parents, consider disbursing the health insurance premiums on behalf of your parents.

In the case of dependant parents, you can even avail a tax deduction under Section 80D of the Income Tax Act.

#2. Mutual Funds

Investing in productive investment avenues like mutual funds can work in favour of your loved ones by enhancing their financial well being. You can invest in mutual funds by start an SIP or Systematic Investment Plan for them. If you are wondering what is SIP, it is simply an investment vehicle.

Under an SIP investment, an investor invests a fixed amount at specific intervals for a given period of time. When you invest in SIP, you are benefited from rupee cost averaging and the power of compounding.

You can also use a mutual funds SIP calculator, commonly known as SIP calculator to determine the future value of your investments.

#3. Savings Bonds

These investment options make for a great gift, especially for children who are too young to be tempted to cash them in the near future. Savings bonds are an excellent way to teach children about patience which is an essential financial lesson.

The primary purpose of owning a savings account is to offer a safe house for money while simultaneously earning interest on it. A savings account can also be used to start an SIP to invest in mutual funds.

#4. Public Provident Fund (PPF)

PPFs are considered as one of the greatest gifts that you can gift our child for various reasons. It is a 15-year investment scheme which allows you to build a corpus for your child’s education, primarily higher education, which let’s face it can be pretty expensive on your pockets.

The interest earned on PPF schemes is tax-free at the hands of the investor.

What’s more, you also avail tax benefits of up to Rs1.5 lakh under section 80C of the IT Act, 1961. These are one of the best investment options to build a child plan corpus.

Wrap Up – Best Financial Gifts

Remember, there are various other financial gifts to choose from. Make sure that you give a thoughtful gift that brings a positive change in your loved one’s life and also strengthens your bond. Happy investing!

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Gaurav Jain
Article by Gaurav Jain
Hey There! My name is Gaurav Jain, a full time affiliate marketer since 2007. The reason for starting eMoneyIndeed.Com blog is to help you Save & Make Money Online. I write about Blogging, Online Marketing, Webhosting, SEO, Affiliate Marketing, Startups, Social Media, Email Marketing and more. Hope you enjoy the posts on eMoneyIndeed.com

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