Gifts for Dhanteras and Diwali That Could Increase: Future Investments in Giving

As the festival season approaches, we consider giving our loved ones gifts on significant events like “Dhanteras” and “Diwali” to wish them the best possible future. The best present that your loved one will treasure and remember for years to come could be investing in their financial future. A gift of investments has the potential to change recipients’ lives and assist them in achieving their objectives.

In general, Gen-Z investors choose riskier assets like stocks, NFTs, and cryptocurrency. In addition to conventional financial instruments, one should constantly search for options that provide diversification from high-risk investments and the possibility of steady future returns that might increase over time for a secure future.

Giving gifts to loved ones on auspicious occasions is a wonderful blessing, and one may consider giving something heavenly or pure. As a result, presents in the form of gold or silver have often remained popular across time. We may search for investment presents that would be appropriate for “Diwali” and “Dhanteras” to give to the Gen-Z members of the family.

Over the years, gold has shown its effectiveness as a hedge against inflation, currency depreciation, and market volatility. A portfolio that includes gold is an excellent way to diversify assets away from high-risk investments and perhaps give consistent stability over time. These days, there are a lot of investment options for owning gold in demat form as opposed to physical form.

Investment gift via mutual fund: Gold and silver in the form of exchange-traded funds (ETFs) provide asset diversification by fusing the ease of gold investing with the flexibility of stock investing. Exchange-traded funds (ETFs) for gold and silver are fractional shares that track actual gold and silver, either in paper or dematerialized form. Like any other corporate stock, gold and silver exchange-traded funds (ETFs) are traded on the cash section of the BSE and NSE and may be continually purchased and sold at market rates.

Through hybrid multi-asset schemes, the major asset management firms (AMCs) are now providing an option to invest in gold. A lot of schemes use a fund-of-funds structure and focus mostly on investing in gold exchange-traded funds (ETFs). However, a small number of schemes use an ETCD to invest in gold and diversify their holdings by include other commodities.

Gift Sovereign Gold Bonds: SGBs are government securities with a gold gramme value. They serve as an alternative to actually possessing gold. The issue price of the bonds must be paid in cash by investors, and at maturity, the bonds will be redeemed for cash. The Reserve Bank is the issuer of the Bond on behalf of the Indian government. The Bonds have an annual interest rate of 2.50% (fixed rate) based on the original investment amount.

Digital gold is a way to purchase and sell gold without needing to keep it in physical storage. The market price of actual gold determines the return on investment, and digital gold is 100% pure, guaranteed, and kept securely.

Notice: The opinions presented in this piece are subjective and do not attempt to time or forecast the markets in any manner. The opinions shared are intended only for informational purposes and should not be interpreted as tax, legal, or financial advice. You are solely responsible for any action you take based on the information in this document, and Tata Asset Management Pvt. Ltd. will not be held accountable for any negative effects on your actions. Prior to investing, speak with your mutual fund distributor. The Tata Mutual Fund scheme portfolios may not represent the opinions stated in this article. The opinions shared are based on the state of the market at the time and might change. Under any Tata Mutual Fund program, there are no promised or guaranteed returns.

Investments in mutual funds are prone to market risks; thoroughly review all documentation pertaining to the plan.

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