Financial Diwali Gifts for Women: This time on Diwali, give a gift that gives happiness as well as financial security. For women, options like gold, SIP and FD can help them build a better future as per their needs, financial goals and risk appetite. Let us know about this from Swati Jain, CEO – Wealth, Arihant Capital Markets Limited.

Gold: investment option with tradition

Gold has special importance in Indian families. Giving gold coins, rings or chains on Diwali is considered auspicious. But it is important to keep some things in mind from investment point of view. Making charges and other expenses have to be paid while buying gold jewellery. The price may be reduced even if sold. Apart from this, there is a concern about keeping the gold safe.

If the objective is to invest instead of jewellery, options like gold ETFs or gold mutual funds can be considered. Demat account is necessary for gold ETFs, whereas it is generally not required for gold funds. However, the price of gold can also fluctuate. Therefore, instead of investing the entire savings in gold, it is better to consider it as a part of the investment.

SIP: Preparing for a big goal with small savings

If you want to give a gift that will help build wealth in the long run, SIP can be an option. In this, a fixed amount is invested in mutual funds at regular intervals. It can also be started with a small amount.

SIP can be useful for women who are starting a job or want to create a habit of saving for the future. Regular investing helps in gradually accumulating money and can provide the benefits of compounding in the long run. But returns are not guaranteed in SIP. The investment outcome depends on the market and the mutual fund chosen. Therefore, it is important to understand your goals, time and risk appetite before investing.

FD: Option of stability and fixed interest

Not everyone is comfortable taking market- risks. In such a situation, fixed deposit i.e. FD can be useful. In this, money is deposited for a fixed period and returns are received as per the prescribed interest rate.

For women who want to save for near-term needs or are nearing retirement, FD can be an option. However, premature withdrawal of money may attract a penalty. If inflation is higher than the interest rate, the purchasing power of money may also decrease.

How to choose the right financial gift this Diwali?

Gold, SIP and FD have their own advantages and limitations. Gold can help in diversifying investments, SIP is an option to build wealth in the long run and FDs give relatively stable returns.

The best gift is one that suits the woman’s needs and financial goals. If you wish, you can also choose a balanced combination of these options, gold for emotional value, FD for near future needs and SIP for long term goals. While choosing a gift this Diwali, pay attention not only to its price but also to its future utility.