Mother’s Day is celebrated on the second Sunday of May. This year Mother’s Day falls on 12th May 2019. You may be thinking of gifting something really valuable to your mother on mother’s day, but do remember that conventional gifts don’t last long. Why don’t you consider gifting something big and long lasting this year? It must be something that would last her a lifetime, offering financial independence and security.
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1) Gold Bonds: Indian mothers always have a strong affinity towards the yellow metal. So, why don’t you gift gold bonds instead of physical gold? Gold bonds are a good substitute for physical gold. Gold bonds don’t have making charges unlike physical gold. The value of gold bonds is expected to rise further as uncertainties in the global market result in skyrocketing of the gold prices. Gold bonds have sovereign guarantee with zero chances of default. This is on both the Principal and the Interest. These bonds can easily be gifted or transferred.
2) Health Insurance Plan: If your mother does not have a health insurance plan, then you must strongly consider gifting her a good health insurance plan which assures the best medical care when needed. You have a wide range of insurers to choose from, and you must compare and choose the best. There are insurers with family floater plans, designed to cover even senior members of the family. If your mother is older than 60 years, then you can consider senior citizens health insurance plan, this mother’s day.
SEE ALSO: Importance of Financial Planning
3) Shares: If your mother has some knowledge on the stock markets, then gifting stocks/shares is a great idea. Quality shares would give her good returns; even if she doesn’t monitor them closely. To gift shares, the recipient (your mother in this case), must have a demat account. You can gift shares by transferring them to your mother’s demat account. You can do an off-market transfer, using DIS (Debit Instruction Slip) provided by the Depository Participant.
4) Mutual Funds: Unlike shares, mutual funds cannot be transferred. To gift mutual funds, you can either redeem the units and then gift the proceeds to your mother or transfer the money to your mother’s account and use this money to invest in the mutual fund in her name.
5) Fixed Deposit: If your mother is not keen on investing in equity, then fixed deposits are an ideal option. FDs are considered the safest investment as there are hardly any instances of banks defaulting on FDs. Moreover, banks offer a higher rate of interest for senior citizens. These deposits have maturity periods ranging from 7 days to 10 years. The best thing about FDs is that they can be reinvested at maturity. This could be an excellent gift this mother’s day.
6) SCSS: Senior citizens savings scheme (SCSS) is a government backed savings scheme for people aged above 60 years in India. SCSS offers the best returns among all the government backed schemes. The maturity period of SCSS is 5 years and can be further extended for three years.
You can invest a maximum of Rs 15 Lakhs in the SCSS. This is a safe and reliable Government sponsored investment scheme. SCSS offers an interest rate of 8.7% for the January to March 2019 quarter.
SEE ALSO: Basics of Financial Planning
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