9 Best Financial Gifts for Your Loved Ones This Diwali

Oct 26, 2024 / Reading Time: Approx. 6 mins

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9 Best Financial Gifts for Your Loved Ones This Diwali

Diwali, the festival of lights, is a time for celebration, joy, and gifting. While sweets and traditional presents are always cherished, why not make this year extra special by giving something that lasts a lifetime? Financial gifts offer your loved ones not just immediate joy but also long-term security and peace of mind. Whether helping a family member to build an emergency fund, starting an investment plan for a child, or gifting your parents a health insurance policy, these thoughtful financial gestures can make a lasting impact.

As a financial advisor, I have often seen clients struggle with financial stability and wish they had been more financially empowered earlier in life. This Diwali, we, at PersonalFN, encourage you to go beyond material gifts and choose ones that can truly transform lives. In this article, we explore the 9 best financial gifts to give your loved ones, ensuring that the light of financial freedom shines in their lives long after the festivities are over.

Let's discover how you can make your Diwali gifting thoughtful, practical, and impactful with options that not only brighten your loved ones day but also secure their financial futures.

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9 Best Financial Gifts for Your Loved Ones This Diwali:

1. Stock the Future with Prosperity:

Gift your loved ones shares or mutual funds to set them on the path to long-term wealth creation. Investing in equity allows them to benefit from the power of compounding and the potential for high returns over time.

For beginners, mutual funds offer professional management, making it easier to start with lower risk. Giving stocks or funds can be a great way to inspire young family members to become financially literate and start building a secure future.

This thoughtful gift is not just about money-it is an opportunity to foster financial independence and wealth-building habits that will grow over the years, much like a Diwali diya spreading light.

2. Shine Bright with Gold ETFs or Sovereign Gold Bonds:

Many individuals prefer gifting gold to their loved ones on Laxmi Puja, as gold is considered a symbol of the goddess Laxmi in our country. Instead of traditional gold jewellery, you can consider gifting Gold ETFs or Sovereign Gold Bonds (SGBs).

These financial instruments not only represent the value of gold but also offer additional benefits like safety, tax advantages, and interest income (in the case of SGBs). Unlike physical gold, these gifts do not come with storage or purity concerns, making them more secure.

Gold has always been a symbol of wealth and auspiciousness during Diwali, and with these options, you give your loved ones a modern, secure way to accumulate gold over time. Plus, they serve as a hedge against inflation, making them a thoughtful financial asset.

3. Secure Happiness with Fixed Deposits or Recurring Deposits:

It is a great option to help your family and friends build financial stability by gifting them a Fixed Deposit (FD) or Recurring Deposit (RD). Both offer guaranteed returns and minimal risk, making them perfect for those who prioritise safety.

FDs provide a lump sum after a certain period, while RDs allow regular monthly contributions, which is ideal for disciplined savings. These gifts can be perfect for elderly relatives who prefer stable income or for younger family members who are just starting to save.

It is a safe, secure way to ensure your loved ones have financial peace of mind during and after the festive season.

4. Nurture Tomorrow with the National Pension System (NPS):

This Diwali, give the gift of a secure retirement by contributing to a National Pension System (NPS) account for your loved ones. NPS is a government-backed pension scheme offering a mix of equity and debt, ensuring balanced growth. Contributions are tax-deductible and grow over time, making it a thoughtful long-term gift.

You can start an account for a younger family member or add to an existing one for parents or older relatives. It is a unique gift that shows care for their future financial well-being, allowing them to enjoy their golden years without financial stress.

5. Safeguard Health, Gift Peace with Health Insurance:

The best way to show love this Diwali is to care for the health and well-being of your loved ones. Gifting a health insurance policy ensures that they are financially protected in case of medical emergencies.

With rising healthcare costs, even a single hospital visit can strain finances. Health insurance covers these expenses, ensuring that savings remain intact. This thoughtful gift provides peace of mind to your loved ones, preparing them for unexpected health challenges and helping them focus on the joy and brightness of Diwali without worry.

6. Light up Lives with Term Life Insurance:

Term life insurance offers financial protection to families in case of the policyholder's untimely death. Gifting a term plan to a family member provides security and ensures that their dependents are financially safeguarded.

Unlike other life insurance policies, term insurance is affordable and offers higher coverage, making it a perfect gift for someone starting a family. It is a powerful way to show your care and love, ensuring that the financial well-being of their loved ones is secured, even in their absence.

7. Gift Knowledge with an Education Savings Plan:

Education is one of the most valuable gifts you can offer, especially for children. This Diwali, you should consider contributing to a child's education fund, helping parents save for future educational expenses.

Education savings plans, such as a Sukanya Samriddhi Yojana for a girl child or other child plans, offer tax benefits and allow for systematic savings. These financial gifts help ensure that the child's academic dreams are met without financial strain, making it a thoughtful and meaningful contribution that lasts long after the Diwali lights dim.

8. Utilise Your Diwali Bonus to Build an Emergency Fund:

Financial emergencies come unannounced, and having a backup fund is essential for handling unforeseen situations. Help your loved ones prepare for life's unexpected twists by guiding them to create an emergency fund.

This fund typically covers six to twelve months of living expenses, providing a cushion during challenging times. Setting up this financial safety net as a gift shows you care about their long-term stability. It ensures that they will not have to dip into their savings or take on debt when life throws surprises their way.

9. Considering Gifting a Financial Planning Service:

A professional financial planning consultation can be a life-changing gift, offering personalised advice on savings, investments, insurance, and more. By gifting a consultation, you are offering access to expert guidance to help your loved ones achieve their financial goals, whether it is buying a house, planning for children's education, or building a retirement corpus.

This Diwali, help your family and friends map out their financial future and empower them to make informed decisions, ensuring their long-term financial health.

To conclude:

This Diwali, let your gifts go beyond the traditional and bring lasting value to your loved ones' lives. By choosing financial gifts, you're offering them the tools to secure their future and achieve financial independence. From investments and insurance to education plans and professional advice, these thoughtful gestures will help them build wealth, stability, and peace of mind.

These gifts, rooted in financial wisdom, will ensure your Diwali celebrations leave a lasting impact.

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Hiral Bhuta is a Investment Consultant & Principal Officer. She is a seasoned professional in the financial services industry, currently serving as an Investment Advisor and Financial Planner at PersonalFN. With her expertise, she plays a pivotal role as the Principal Officer appointed under SEBI's amended IA Regulation. Hiral holds distinguished certifications such as Certified Financial Planner (CFP) and NISM XA & XB, complemented by a post-graduate degree in commerce (M. Com). Her primary areas of focus encompass financial planning, investment advisory, and wealth management, where she leverages her knowledge and skills to provide tailored solutions to clients. With a cumulative experience spanning five years, Hiral brings a wealth of expertise and insight to her role at PersonalFN, ensuring clients receive expert guidance and support in navigating their financial goals.
 


Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.

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