The best financial gifts to give your loved ones
Financial gifts are often overlooked when it comes to gifting our loved ones. However, they can have a lasting impact on their future, helping them achieve their goals. In the past, options were limited, but now there are numerous choices available to express your care for your loved ones.
Enroll in an Online Course
Knowing personal finance and investments is essential for sustainable wealth building. Financial institutions offer online courses that can help individuals understand various aspects of finance and investing. These courses are easy to understand and can help individuals make prudent decisions, avoid mis-selling, and achieve their financial goals. Enrolling in these courses can help your loved ones improve their financial knowledge and plan their finances and investments better.
Stocks
Investing in strong long-term stocks can generate returns that beat inflation and help achieve important goals like higher education or marriage. Thanks to electronic delivery slips introduced by CDSL (Central Depository Services Limited), gifting stocks is now hassle-free. It’s also a wise way to introduce loved ones to capital markets for wealth creation. Many brokerages offer this option, allowing you to easily gift stocks with a few taps. If the recipient doesn’t have an account, they can quickly open one before accepting the gift. Investing in potential high-growth stocks can greatly enhance long-term wealth-creation opportunities.
Life Insurance
Life insurance is vital for protecting your loved ones’ financial interests and achieving various goals. Term life insurance offers affordable premiums and high coverage, ensuring your close ones are financially secure in challenging times. Additionally, endowment plans provide benefits in case of death or maturity, while ULIPs serve as investment and insurance tools, utilizing premiums for life cover and capital market returns.
Health Insurance
In today’s world, health insurance is a necessity that helps keep savings intact during a medical emergency. It also ensures that all commitments can be met without financial stress. Choosing the right plan is crucial and there are options for individual or family coverage. For those living in high-cost areas, a health plan with INR 10 lakh coverage is advisable. And at the same time, comparing policies will ensure the best fit. Consider a top-up plan as a gift for someone who already has health insurance for additional coverage at an affordable cost.
Mutual Funds
Mutual funds have become a popular investment option due to their diversification benefits. Systematic Investment Plans (SIPs) are a great way to invest in mutual funds, promoting disciplined savings habits and enabling investments across market cycles. While transferring mutual fund units to another account holder is not possible, starting a SIP for a minor child is a viable option. Purchasing units in the child’s name allows for continued payments until the child reaches adulthood. After the child turns 18, fresh KYC is required, and the child can benefit from the investments made by the parent.
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