ARTICLES

The festival season has already begun in India. One of the biggest festivals celebrated in India is Diwali, a festival of lights. Diwali celebration is filled with the greatest excitement and joy. Diwali is all about lighting lamps, bursting crackers, and exchanging gifts. As we celebrate the victory of good over evil, knowledge over ignorance, and light over darkness with our family and friends, we enjoy exchanging sweets and gifts. 

When we think of Diwali gifts for friends and family, gadgets, online gift vouchers, gold, god’s idols, décor items, artworks, etc., are the common ideas that come into our minds. Let’s think unconventional this time. Think of financial gifts this year! No! We are not just talking about cash! How about giving something that can provide financial security to your family? 

Let’s take a look at some of the best financial Diwali gifts for your family and friends.

Gift Gold ETF:

Gifting gold on Diwali to the closest family members has been a popular practice in India. Gold is considered to be an auspicious asset that has grown in value over the years. Instead of gifting physical gold or an ornament that needs to be kept in a safety locker, it would be a great choice to give by way of investing in gold ETFs. Investing in gold ETFs or gold mutual funds in the name of your loved one can be a unique and great financial gift for their future financial security. 

You can avoid the risk of storage, making charges cost, etc., by investing in gold ETFs and gold mutual funds. As ETFs are traded on an exchange, these investments are held in dematerialised form. 

The Gift to Boost an Emergency Fund:

The emergency fund acts like a safety net during rainy days. Financial emergencies may arrive unexpectedly at any time. It is important to have a contingency fund to deal with such urgent liquidity requirements in order to maintain financial stability. There are many organizations that give Diwali bonuses to their employees. 

Any such surplus money received can be invested in liquid funds or as flexible fixed deposits in the name of your loved ones to boost their emergency fund requirement. Contributing to your loved ones’ emergency fund as a Diwali gift can help them with financial security during emergencies.

Gift an Insurance Policy:

One of the best financial gifts that you can give to your parents or any of your loved ones is buying them a life insurance or health insurance policy. A life insurance policy can give financial security against the uncertainties of life along with building a significant corpus for long-term goals. A health insurance policy can be a valuable investment that can financially shield them against any medical emergencies that may arise anytime unexpectedly. 

Though young members may love to receive the latest gadgets, choosing these financial gifts would help in their time of need. By giving a life insurance plan or a health insurance plan with a good amount of coverage, you can ensure the financial well-being of your loved ones and be their support system in their time of need.

Invest in Mutual Fund SIP:

Monthly investment in the form of a systematic investment plan can be a great Diwali gift for your loved ones for their bright future which will also help them to meet their goals. 

Goals can be purchasing a dream car, enrolling in a course, etc., and investing in an avenue like a mutual fund SIP would be a worthy Diwali gift that would help you build a significant corpus for your loved ones. You can start with a monthly investment of INR 500 or INR 1,000 and later can increase them in the future. This Diwali, give such financial gifts to your family and friends to make it a prosperous Diwali. 

Gift them a Savings Account:

Opening a savings account for younger members of your family can be a worthy Diwali gift. Let’s say your younger brother has just finished his studies or is going for higher studies or starting his career. Opening a savings account by depositing some money as a Diwali gift would give a wonderful start to their financial journey. 

Opening a savings account today is as easy as gifting an e-voucher. An instant savings account can be opened online with just a few clicks. This would help them utilise all the digital banking services offered by the bank, such as e-wallet, net banking, online investment services, etc. 

Not just to your family members, you can give a savings account to your extended family, such as your cook, house help, etc. You can deposit the Diwali bonus and gift amounts in that account to build a contingency fund for them.

Gift Financial Books:

Gifting a book never goes out of fashion. Knowledge is power and real wealth. You can give some of the good financial books to your friends and family to help them improve their financial literacy. Having financial knowledge about all the financial instruments can help them achieve financial success in life. Books are thoughtful and thought-provoking. This Diwali, give the best financial books to your family and friends to empower them with financial knowledge and be a part of their successful financial journey. There are various e-courses available online for a few hours. You can enrol your loved ones in such courses to enhance their financial knowledge. Click here to read an article on 5 Financial Lessons from Books.

Diwali is all about getting together and celebrating goodness. This Diwali, move away from traditional Diwali gifts like a pack of dry fruits, sweets, idols, and décor items, and be thoughtful about the financial gift which can contribute to your loved ones’ prosperous life in real terms. Make a worthy investment in the name of your loved ones this Diwali and brighten their future with your wonderful financial gift. Gift your family and friends mindfully, and enjoy!

Happy Diwali!

Disclaimer: Investment in securities and other investment products is subject to market risks; read all the related terms and documents carefully before investing.