Diwali is a season dedicated to gifts. For Diwali shopping, most people set aside money for a full year. Searches for innovative Diwali Gift Ideas for family members increase during this festival to make them happy. It’s always a good idea to purchase gifts for your loved ones.
However, whatever gifts we buy in general, the value of those gifts will depreciate in the future. That means clothes, electronics, or any household item, is for a specific period. After a few years, it will be of no use.
In this blog, I am writing about the gifts, that will appreciate in the future.
Read earlier Blog: Diwali Bonus: Best one-time Investment Plan or chance to splurge?
1. Invest in Equity in the name of your son or daughter instead of buying them a new Phone or a Bullet:
Nowadays, there is a craze for buying a new I phone or car or bike, especially, a bullet if you have a son. Instead of spending these high-cost items, investing in Equity (Direct or through Mutual Funds) is a far better gift for them in the future.
Open a D-mat account in the name of your child this Diwali. You can gift them “Stocks of a Good Company” this Diwali. This investment will never be wasted. Make them aware of Equity investing.
Trust me, it may sound boring or uninteresting gift, but in the future, your child is going to thank you for this Equity Gift. Consult your Financial Advisor before investing in Stocks.
Know More: Invest in Stocks on behalf of your minor child
2. Gift “Sovereign Gold Bonds” instead of Gold Ornaments:
It’s our tradition to purchase Gold on Dussehra / Diwali. Gold is a good investment option if the right investment proportion is maintained. It is said that a 10% investment in the Gold Asset Class is important out of your total investment portfolio. But the question is in what form we should buy gold?
Instead of Gold ornaments, the wise way to invest in Gold or gift Gold is “Sovereign Gold Bonds”. Physical gold is
- Difficult to store
- Purity is often questioned
- Threat of theft
- Due to making charges and taxes, it is not so investment friendly.
Instead, Gold Bonds are offered by the Government. It is in digital (D-mat) form. Hence, the storage cost of saved, purity of gold is out of the question, and making charges is not applicable.
If you withdraw money after maturity i.e. after 8 years, there is no Capital Gain applicable. In addition, 2.50% interest p.a. is what you can get on this investment in SGBs.
Hence, if you want to gift gold to your family member, try considering it in the form of SGB. This is one of the best Diwali Gift Ideas for Family or your daughter. Even if you want to gift Gold ornaments only, various options are available in 1-gram gold. The rest of the money you can invest in SGB.
3. Invest in a “Sukanya Samriddhi Yojana” in the name of your daughter:
The smart way to invest in the way of your daughter is “Sukanya Samriddhi Yojana”. The scheme is eligible for parents of a girl child. The age of the girl should be below 10 years. The maturity period is 21 years. It is from the date of account opening or upon her marriage after attaining 18 years.
The current Interest rate for SSY is 8.00% p.a. which is better than most of the other schemes. Further, being the Government Scheme, it is a safe investment. Like, PPF, the SSY also having EEE status (Tax exemption).
Instead of gifting some luxurious items, try opening an SSY account in the name of your daughter this Diwali. This will immensely create a good corpus for her higher studies.
Know More: Sukanya Samriddhi Scheme
4. Open a PPF account in the name of your Minor Child:
This idea may seem boring or traditional, however, investing in PPF for the long term will help your child to accumulate wealth. Imagine you have opened a PPF account when your son is 5 years old. Till he starts working (i.e. for about 20 years) you are consistently depositing money in that account. When he starts earning, he can manage that same account for the next 15 years.
Though the primary tenure of the PPF account is 15 years, you can extend it further in 5-year intervals for an indefinite period. So, the total investible tenure would be 35 years. Even if you invest a small amount annually, 35 years is a very good tenure.
Deposit some money on the occasion of his or her birthday or Diwali. PPF has ‘EEE’ status. That means Exempt at the time of deposit, Interest earned is exempt and maturity is also tax-free.
This Debt Investment option is one of the best Diwali Gift ideas for your family & children if your a conservative or risk-averse parents.
5. Gift a workshop /online course to your son / daughter of their Interest:
According to Benjamin Franklin, “An investment in knowledge pays the best interest.” So, Investment in workshops, and courses that will boost the knowledge of your child will be the best gift ever.
It’s crucial to make an investment in their skill development. Numerous well-known websites provide online courses in a variety of subjects, including computers, data science/analytics, law, design, investment, share market, digital marketing, and so on.
Udemy, Coursera, and Skill Share are a few websites that offer various online courses for different areas.
Gift your child something that will enhance his / her personality going forward.
Conclusion:
To conclude, these are some of the best Diwali Gift Ideas for Family but in a financial context.
We worship the goddess Lakshmi. So, we should think twice before spending it. Our actions should grow Lakshmi (Money) for our family. What could be a more auspicious occasion than Diwali for this?
Wish you a very Happy Diwali in Advance!
Very nice advise. Looking at Gift this way is different and positive. very good.