DON’T GO LIQUID
Cash is either spent or invested. The first may not exactly add to financial security. Investing the money earned as a gift, meanwhile, attracts Tax. Cash too can be taxable if it is over ?50,000. So better to invest directly and then gift it.
NO DEMAT NEEDED
There’s a big reason why gifting Mutual Funds (MFs) is more convenient than buying shares - the recipient does not need a Demat account. It can, thus, be a better gift.
GIFT YOUR CHILD INDEPENDENCE
MFs have specific schemes for kids called Child Plans. These can be a better gift as it enables your child to be financially independent. Invest in such a plan and gift it once your child turns 18.
SECURE YOUR PARENT’S RETIREMENT
Life can be quite challenging after retirement without a steady source of income. You can gift your parent’s financial security during their retirement by investing in a Retirement/Pension Plan for them as a gift.
When you buy jewellery, the jeweller adds an extra charge for the labour. This adds to the cost and cuts into returns. So, it’s better to invest in Gold Funds. They may also end up giving better returns.
GIFT A FINANCIAL PLANNER
“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” Exactly the same way, gift a planner and enable your loved ones to be financially independent for a lifetime.