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Exploring Investment Opportunities For Diwali Gifts

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Diwali, the festival of lights, is quickly approaching. As we prepare to exchange gifts with our friends and family, the first things that come to mind are items such as sweets, clothing, and the latest gadgets. The idea of an Investment Gift is rare. These gifts can play a huge role in securing the future of our loved ones and helping them achieve their life goals, making them an excellent choice.  

Due to the auspiciousness of Diwali, it is said that any investment made during this time is sure to bear fruit, making it a great time to start an investing journey. In recent years, a wide range of investment options have become available to express just how much we value our loved ones. So let’s explore these options so you can give your loved ones and yourself, the perfect gift.  

Top investment options to invest during Diwali 2024 

If you want to avoid making bad investment choices, investment planning is essential. Take the time to figure out your goals, consider how long you want to invest, and how much risk you can handle. Consider the same for the person you’re gifting. Their goals, their investment period, and their risk appetite. This can be made easier with the help of an investment planner, who can help you look for the ideal investment options and tailor them according to your needs.   

Here are the best investment options to invest during Diwali 2024:

Invest in Gold or Silver   

Gifting gold and silver during Diwali and Dhanteras is a tradition that has been going on for generations. Be it coins, bars, or jewellery, a gift of gold is a symbol of good fortune. It’s a safe and reliable investment that hedges against inflation.  

A new trend has started in recent years where people have been opting to invest in digital gold instead of physical gold, offering a convenient and modern alternative. Some popular forms of digital gold that you can consider are   

  • Sovereign Gold Bond (SGB): Sovereign Gold Bonds are issued by the RBI and offer both capital appreciation and fixed interest income, making them an attractive option. 
  • Gold Exchange-Traded Funds (Gold ETFs): Gold ETFs are investment funds that are traded on stock exchanges, and are easy to buy and sell. 
  • Gold Saving Fund: A Gold Saving Fund is a mutual fund that primarily invests in gold ETFs. It offers the benefits of diversification and professional management while allowing investors to participate in the gold market’s potential upside.  

So digital gold not only provides convenience, but it also gives peace of mind as you don’t have to worry about theft or storage.

Invest in Mutual Funds  

Mutual funds are a wise choice if you’re looking for a diversified investment option. You can gift mutual funds through the Systematic Investment Plan (SIP) to your loved ones, by offering to cover the initial SIP instalments. This will allow them to grow their wealth in the long term.   

Several mutual funds in the market are exclusively designed for the benefit of children, so those with kids can look to make their future secure by investing in mutual funds on their behalf.  

Invest in Real Estate  

Investing in real estate in India has always been a potentially rewarding move. It became even more prominent as a favoured asset during the uncertainty of the pandemic and the lockdowns. You can explore options like investing in real estate investment trusts (REITs), or contributing to a real estate fund for someone looking to build their property portfolio. Investing in real estate can be a reliable bet for the long run, with the potential for some pretty nice returns.  

Invest in Public Provident Fund  

A Public Provident Fund account is a great option for those who are risk-averse and looking for guaranteed returns. It is a secure and government-backed savings scheme. Investing in a PPF account can be a thoughtful way to help someone secure their future financially. Not only does it offer attractive interest rates but one can also get tax benefits under Section 80C.   

Invest in Insurance  

Investing in insurance is a thoughtful way to protect your loved one’s future. You can gift a life insurance policy or a health insurance policy to your family.  

Health insurance is a must-have in today’s world. Having health insurance means your loved ones can get the best medical care when needed without breaking the bank. On the other hand, life insurance not only helps with various short and long-term goals but also acts as a safety net for unexpected events.  

Insurance brings financial security and peace of mind during tough times. By investing in insurance, you can also enjoy tax benefits under Section 80C, reducing your overall tax liability.

Benefits of investment gifts over traditional ones  

One may feel immense happiness on getting the latest iPhone but it cannot compare to the lasting impact investment gifts can have on their future. Here are some ways investment gifts offer several advantages over traditional ones:  

  • Knowing that you’ve taken steps to secure your loved ones’ financial future, investment gifts offer peace of mind. 
  • They grow over time and accumulate wealth, becoming a valuable asset for the future thus providing a solid financial foundation for your loved ones. 
  • Investment gifts are thoughtful. They show that you care about the financial well-being of your loved ones. 
  • They also promote financial literacy. They will encourage the receiver to learn more about their gifts and teach them the importance of saving and investing, and ultimately lead to your loved ones making informed and better financial decisions in the future. 
  • Some investment options, such as Public Provident Fund and insurance provide tax benefits, so it will help your loved ones save on taxes.  

Also Read: How to Invest in SIP? 

Wrapping it up for Diwali  

So this Diwali, as we celebrate the victory of good over evil, consider a unique and forward thinking approach to gifting. Investing in gold, mutual funds, PPF, or insurance can be a truly meaningful gesture. These gifts not only reflect your love and care but also provide the potential for long-term financial prosperity for your loved ones.  

Consult a financial planner to help you in choosing the best investments that align with your needs as well as the needs of your loved ones.