Give A Thoughtful Gift To Your Loved Ones This Festive Season

The season of festivities has set in with fervour and excitement. It’s time to bond, celebrate culture, have a ball of a time, and exchange gifts with your near and dear ones. Brian Tracy (a Canadian-born American motivational speaker and self-development author) beautifully says, “The greatest gift that you can give to others is the gift of unconditional love and acceptance.” .

Therefore, when you give gifts to your near and dear ones on festive, special occasions or even otherwise, make sure your gift possesses the undertones of these potent lines, so that it can truly be memorable for your loved ones.

Please note, it need not be expensive or flamboyant; but ideally, you should be able to touch and uplift the lives of loved ones, making them feel distinguished and cherished.

A Roman Stoic philosopher, statesman, dramatist, and humourist of Latin literature Lucius Annaeus Seneca, has strikingly articulated, “A gift consists not in what is done or given, but in the intention of the giver or doer.” Hence, your gift represents your thoughts, intentions, and feeling for your loved ones.

Make sure your gift is a remarkable gesture. Here are some financial gifts you can consider giving your loved ones, below:

• Investments
  Everyone saves, but mere savings is not enough. Savings need to be invested in productive asset classes and investment avenues with calculated risk, so that inflation, which eats into one’s hard-earned savings, can be countered effectively. SIP or Systematic Investment Plan in a mutual fund scheme(s) is a promising mode of investing in mutual funds systematically for your loved ones, which can contribute to their long-term financial goals. So, a dutiful brother, for instance, could consider gifting or contributing to a SIP for his beloved sister’s wedding expenses number of years hence, or for any other financial goals. The option to invest lump sum, too, is available. Remember, investing in mutual funds carries these benefits:
  
  
  • Diversification
  • Managed professionally
  • Smaller amounts can be invested
  • Ensures liquidity and
  • Well regulated by the Securities and Exchange Board of India (SEBI).
  
  Similarly, for a less privileged friend who cannot afford to take a high risk owing to his/her financial circumstances, or has a short-term investment horizon, a Recurring Deposit(RD) of a bank can be a suitable investment option. This will add to his/her financial security, earn a fixed and better rate of return vis-à-vis a savings account. However, make sure you explain to the recipient that although the interest earned on RD may not be subject to tax deduction at source (TDS), the interest is taxable. Lump sum investment can also be done in a bank Fixed Deposit (also known as term deposit) in the name of the person of your choice. Be wise to select a reputed bank with a sound financial standing before parking your money.
• Buy Medical Insurance
  As you know, the cost of healthcare is on a rise. Moreover, today’s lifestyle comprising of long hours, stress, lack of physical exercises, junk food, alcohol, etc. invites higher risks to one’s health. So, if you can gift someone a health insurance cover by paying his/her premium, it’ll be a worthy gift.
  Financially independent children can consider paying the health insurance premiums on behalf of their parents. Doing so, in the case of dependent parents, entitles you to for a tax deduction under Section 80D of the Income-tax Act, 1961.
• Gift a Holiday or a Dinner – using a debit card/credit card
  Parents make numerous sacrifices, so that their children see a bright future and lead a comfortable standard of living. Therefore, when you become a financially independent child, consciously do your bit to make your parents happy. One such thing is, gifting or funding a holiday to a place they always wanted to travel and explore. The holiday will be memorable and will be a manifestation of your morals, principles, and respect for your parents. Likewise, you can purchase a dinner package for the two on their anniversary. All you need to do is, swipe your debit card or credit card. These days, there are some fabulous offers on credit cards for dining, and you can craft an even better deal by contacting the restaurant of your choice and making all the arrangements.
  In the same way, for a newly wedded couple, who may be currently restrained by their financial situation, sponsoring a candle light dinner can be a thoughtful gift using your debit card or credit card. Make sure you get the best deal.
• Aid someone’s Education, Healthcare
  At times, certain money-oriented yet valuable experiences, such as quality education, a hobby class, exclusive health check-up packages, etc. could be beyond someone’s means. If you can present them with these, or aid them in any way, it would be a noteworthy gesture; an exceptional act of kindness.
• Gift Card – a smart choice
  When you aren’t sure of one choice, gifting can be effortful. Here’s when a Gift Card can be a smart choice. Gift cards are prepaid cards offered by banks and widely accepted today at merchandise outlets and online shopping portals. You need not worry about the security of the money as it comes with a unique PIN, plus it’s easy to handle as opposed to doling out cash.
  So, when you have birthdays of acquaintances, relatives, friends, or special days like Mother’s Day, Father’s Day and so on, and you aren’t sure what they may like, consider a Gift Card; it provides them with the liberty to buy what they like. But remember that gift cards usually come with a validity of one year from the date of issue, and cash withdrawal aren’t permitted nor are they reloadable.
  Axis Bank has an e-gift card (also known virtual card) that allows you to instantly gift the receiver from anywhere and can be used at online merchants in India who accept a Visa card. The gift card comes with denominations ranging from Rs 500 to Rs 50,000 and is activated within hours. In the case of e-gift card it is almost instant.
• Add-on Credit Cards
  Add-on credit card is a good choice to gift within family members. For your wife, dependent sister, dependent parent and grown-up children, an add-on credit card, perhaps with a smaller limit, can prove handy. But when you handover one, subtly explain how to use it thoughtfully to avoid falling into a debt trap. A credit card would introduce them to credit management and its importance for a healthy better credit score (which reflects credit behaviour and credit worthiness).

Remember, there are numerous gifts your loved one would get. Make sure yours is a thoughtful gift that can have a lasting impact, allowing you to bring a positive change in someone’s life, touch their heart, and strengthen the bond.

Happy gifting!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.