Given the ongoing lockdown, showering mothers with clothes, bags or outing may seem difficult this Mother's Day.
Given the ongoing lockdown, showering mothers with clothes, bags or outing may seem difficult this Mother's Day. That also means, one can be different this time and gift something to augment the finances of mothers.
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Here are some of the financial gifts for mothers:
Mutual Fund SIP
Long before Systematic Investment Plans (SIPs) were introduced by mutual funds or recurring deposits were launched by banks, mothers would periodically deposit funds into their savings account by cutting costs from regular household expenses.
"Gifting her an SIP can allow her to periodically save money in a structured manner with an opportunity to earn returns. One can give her a start by offering to pay the first few installments of the SIP," explains Harsh Jain, co-founder and chief operating officer, Groww - an investment platform.
These days, it has become very easy to go online and invest in mutual funds, say experts. This means an SIP can be gifted while being indoors.
Medical Cover or Health Insurance
As mother ages, she will need medical assistance. While advancements in
medical science have increased life expectancy, the medical costs have skyrocketed too. Hence, one can gift her a medical cover or a critical illness cover .
Buying an online insurance policy anyways also looks easier amid the ongoing coronavirus crisis, as per experts.
"Having a health insurance means mothers will not have to worry about best medical care when needed without getting her savings drained. Since older age groups medical cover is available at a rather high premium, one can help in shouldering a big burden for her," explains Palka Chopra, Senior Vice President Master Capital Services.
"One can also include her name as a beneficiary in the group health cover provided by the employer, if such an option is available," she adds.
Mothers have a strong affinity towards gold. So, one can gift gold bonds at a time when buying physical gold is difficult. According to Ravindra Rao, vice president, head commodity research at Kotak Securities, sovereign gold bond (SGB) is anyways considered a good bet when it comes to gold investment.
The Sovereign Gold Bond Scheme 2020-21-Series II will be opened for subscription from May 11, 2020 to May 15, 2020. Online subscribers can secure these bonds at a discount of Rs 50 per gram.
Gifting shares/stocks is also a good idea, say experts.
"Quality shares can give good returns. To gift shares, however, mothers must have a demat account. One can gift shares by transferring them to mother's demat account," say experts.
Fixed deposits are an ideal option for anyone who is not keen on investing in market-linked avenues.
"Being the safest investment, this can be an excellent gift this mother's day. One can easily open an fixed deposit account online. Also, one can transfer," says Archit Gupta Founder and CEO, ClearTax.
First Published: IST