Kolkata: Love can be expressed in many ways — through a neatly wrapped rose, a candle-light dinner, a watch, an expensive dress, or better still, an investment instrument which can create assets for your loved one. Valentine’s Day is less than 48 hours away and you can opt for an investment instrument quickly with the help of online methods.
Significantly, a wide array of instruments are available in the market for anyone to gift on February 14. Let’s take a look at PPF (Public Provident Fund), SSY (Sukanya Samriddhi Yojana) and of course, mutual funds. Nowadays, investments can be done quickly and you can choose these instruments to show your love and shower financial assets on your loved one — a member of the opposite gender, your kid or sibling, whoever it may be.
Public Provident Fund
The good old PPF is one of the most trusted guaranteed-return investment instruments in India. It also pays an interest rate of 7.1% which is not low at all, especially when one considers that the interest rate downcycle has begun in India. The PPF can create a neat corpus of money in the most secure manner, thanks to the element of sovereign guarantee that it enjoys. One can invest a maximum of Rs 1.5 lakh in a PPF account in a year and you can think of paying the first year’s contribution to this account.
Sukanya Samriddhi Yojana
As is evident from the name, this instrument is ideal to gift your girl child. With the help of this scheme, you can open a savings account for your daughter, or niece, or any girl below 10. It can be opened in an authorised bank or a post office. This instrument carries a high rate of interest 8.2% per annum. The rules stipulate that one has to deposit a minimum initial amount of Rs 1,000 and in multiples of Rs 100 thereof. One can deposit a maximum amount of Rs 1.5 lakh a year and deposits can be made till the account holder turns 15. You can begin a SSY account by gifting the first year’s contribution.
Mutual Fund schemes
Over the past few years, especially since the Covid 19 pandemic, mutual funds have been embraced by millions of Indians. The biggest attraction is that even if you can invest a small amount of money in a disciplined manner over a long period of time, it ends up creating a big corpus. SIP (Systematic Investment Plan) is the most popular mode of investment and you can easily consider paying for the SIP amount for a few months to kick off the mutual fund journey of your beloved one. While experts assert that one can start a SIP in any market condition, it needs to be highlighted that the markets are in a correction mode and NAVs of almost all mutual fund schemes are at a low. Therefore, one could think of both SIPs and lumpsum investments in mutual funds. However, as a matter of abundant caution, one should consult a personal finance advisor before committing one’s money.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
Valentine’s day financial gift ideas: Valentine’s Day is less than 48 hours away. You can make a departure from the traditional gifting ideas and consider these investment instruments for your loved one which will not only express your love but also help create assets for the future. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
