Encourage digital financial literacy by teaching her how to manage accounts and payments via mobile apps, giving her independence and control. By combining smart investments with empowerment, you’re not just gifting money—you’re giving her confidence, dignity, and the ability to make financial decisions on her own terms.
1) Mutual Funds investment
Mutual funds make for a thoughtful and future-focused gift for your mother. Mutual funds are easy and effective instrument and act as a wealth multiplier. Mutual funds investments can be in equity, debt and hybrid mode. Through mutual funds, one can take exposure to equities. The funds are professionally managed and investments could be made lump sum or via systematic investment plan (SIP).
One must choose funds from reputed asset management companies with a solid track record.
2) Gold ETFs and Gold mutual funds
Gold has been the best asset class this year and is the hedge against uncertainty. Gold mutual funds and ETFs are fast gaining prominence among investors.
3) Senior Citizens’ Savings Scheme (SCSS)
If your mother is 60 years or older, consider gifting her a Senior Citizens’ Savings Scheme. The scheme offers 8.2% per annum interest payable from the date of deposit to 31st March/30th Sept/31st December in the first instance and thereafter, interest is payable on 1st April, 1st July, 1st October and 1st January.
There shall be only one deposit in the account in multiple of Rs 1000 with maximum investment not exceeding Rs 30 lakh.
4) Sukanya Samridhhi Yojana
For a young mother, this savings scheme is an effective instrument to create wealth over a long period. The investment comes without risk. Currently, the rate of interest is 8.2% per annum,calculated on a yearly basis. A minimum investment of Rs 250 and a maximum of 1,50,000/- in a financial year can be made. Subsequent deposits in multiples of Rs 50 can be made in lump-sum. It also offers tax benefits under the older tax regime.
5) Insurance cover
Amid spiralling health inflation, you can offer your mother the biggest gift of health cover. There are plenty of options available in the market now. Many private insurers offer specifically curated plans for senior citizens, with features like pre-existing diseases coverage. They also offer benefits like ambulance cover, room rent restrictions, and coverage for chronic diseases are often included.
(Disclaimer: This is an AI-generated article. Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
