Here are some financial gifts that can secure the future of your loved ones


If you are thinking of buying something special for your loved ones for the New Year, then go ahead! Offering financial products would be the best thing to do. Imagine investing in something that can secure their financial needs and help them build a better future. Let’s look at some of the gift ideas that can make their 2022 special:

The stocks are still in: Buying stocks of reputable and financially healthy companies is a good option. You can transfer the shares directly to the recipient’s Demat account by entering his name, Demat account number and the number of shares to be transferred in the delivery instruction slip.

SIP in mutual funds: It is about investing systematically in the funds of your choice. It is a long term investment where you have to make monthly, quarterly or annual payments. This will help them achieve their goals.

SIP in Exchange Traded Funds (ETFs): Investing in an ETF is a unique way to brighten up their 2022. You can invest in equity, gold or debt ETFs depending on your preference. These instruments can be easily bought and sold in the secondary market and have low management fees.

Insurance policy: Securing your family has become extremely essential in these uncertain times. Therefore, purchasing a health and life insurance policy would be the most valuable gift for them. Decide on a decent health insurance policy that will suit your needs. In addition, publicizing the adequacy of insurance will be of great value to those close to you. Insurance generally must be purchased for protection against health and illness. There shouldn’t be any other insurance policy in an individual’s wallet.

Buy an annuity: Annuities refer to a defined benefit pension, which the insurance company guarantees for life or for a specified period to the beneficiary or to an annuitant. A fixed or variable deferred annuity takes care of the longevity risk, that is to say the risk associated with the survival of the assets.

Some annuities also come with a death benefit. The death benefit not only helps that particular person, but also their immediate dependents in the event of an unfortunate incident. Annuities should not be confused with insurance products. Although only an insurance company is allowed to sell annuities, they are different from traditional insurance policies.

Offer a subscription from a SEBI Authorized Investment Advisor (RIA): Buying stocks and mutual funds involves risk. The risk here is better understood by market experts and professionals. Quality advice is quite underestimated in today’s digital world and therefore offering the service of a SEBI RIA will be very kind to your loved ones. Financial planning helps in the long run and only a registered investment advisor can add value here.

Repayment of liabilities: While credit discipline is important, paying off the debts of your loved ones in times of distress, when possible, will be a huge relief.

Financial knowledge: Enroll them in an online course that can ease their financial literacy, improve their financial planning, and help them achieve financial independence. With proper knowledge, an investor is less prone to abusive sales.

(The author is the CEO of Tavaga Advisory Services)

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Posted on: Sunday January 09, 2022, 7:00 a.m. IST

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