This year Karwa Chauth will be observed on October 20-21. It is a day when men usually gift wives something as a token of love. Zeroing in on gifts on such occasions can be confusing.
Traditionally, gifts consist of items that are consumed. But nowadays one can select financial instruments as gifts which can create lasting value and are not consumed like usual gifts. Take a look at some of the items that can literally add value for your loved one.
Fixed deposits (FD)
The interest rate cycle is at its peak in India right now. In simpler words, it means, the rate of interest banks, or major NBFCs, are paying on Fixed Deposits (FD) are at their highest level. Therefore, if you gift your wife an FD it would earn her a handsome interest, which she can use later for some purpose. Else, she can reinvest it later to multiply the amount.
Mutual funds
Mutual funds have captured the imagination of the Indian middle class. Equity-oriented mutual funds offer far higher returns than FDs and you can easily think of gifting mutual funds to your wife. These investments can be made in 2 forms – a one-time lump sum investment or SIPs. Systematic Investment Plan, popularly referred to as SIP, would require you to invest a certain amount (according to your convenience) every week, or month in a chosen mutual fund scheme.
Over a few years, it is likely to balloon into a significantly big amount, which your wife can use later on whatever she wants. Most important, mutual fund units can be easily sold (redeemed) whenever she wants. The investment can be done online and can be later sold online too.
Insurance policy
You can also think of gifting a health insurance policy. Given the high inflation in healthcare, a health insurance policy can be of great utility to anyone nowadays. You can buy one in your wife’s name.
Gold jewellery
With the price of gold near all-time peaks, it will be expensive to gift gold jewellery. But with most expert agencies predicting a further rise in the price of the metal, it can extract good value in future if the need arises. However, one must keep in mind that the ‘making charge’ is deducted from the value of jewellery if you want to sell it.
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