Gift wrap: Give your mother financial security
With Mother’s Day just a couple of days away, it’s time to start a gift-hunting drive for the most important woman in your life
By Preeti Kulkarni and Vidyalaxmi, TNN |
With Mother���s Day just a couple of days away, it���s time to start a gift-hunting drive for the most important woman in your life. Two U���s play a key role in the selection of a gift ��� uniqueness and utility. Although flowers and cards are timeless gifts, they don���t score highly on the utility and uniqueness scales. Similarly, while the utility of jewellery and clothes is unquestionable, they lack the uniqueness quotient. So what do you do?
Here���s a suggestion. How about giving her something that would make her feel financially secure? If you are a working man/woman, you could consider the following instruments that would qualify as perfect Mother���s Day gifts:
Medical insurance: Medical insurance is a must-have for everyone.
The tax benefits on buying a health cover for parents irrespective of whether they are dependents or not are an added incentive. The Union Budget 2008-09 has provided for an additional deduction of Rs 15,000 every year under Section 80D if you pay medical premiums for your parents. If you hail from a small or mid-sized town, you should look at a cover of Rs 2-3 lakh for your family. If you reside in a metro, then you should not look at covers less than Rs 4-5 lakh.
Regular income: Investing in mutual funds on her behalf through a systematic investment plan or a lump-sum ��� is another option. Transcend India director Kartik Jhaveri says: ���If you start with an SIP, it will be a building exercise, which means that benefits of the SIP will be derived by your mother at a later date.
Instead, you could invest a lump-sum in equities, and put a withdrawal plan in place to assure her of a monthly income stream.��� ���If there is a requirement for providing her with a regular income stream, you can start off with an MIP,��� says My Financial Advisor���s director Amar Pandit. As the name suggests, MIPs are MF schemes that offer monthly returns. The risk involved is not very high, too.
9% Senior Citizens Savings Scheme: ���If she is a senior citizen with no income or does not fall into any income tax bracket, you can invest in 9% SCSS,��� says Mr Pandit. High interest fixed deposits, too, will help in meeting liquidity and contingency needs.
Gold: Gold is an all-time favourite with women, so it makes for a great Mother���s Day gift. This apart, it is good investment avenue in volatile times like these and is an effective hedge against inflation. Also, you need not gift her physical gold alone. Informs Mr Jhaveri: ���Depending on your budget, it could be a mix of gold ETF, gold funds or even gold coins.���
Added advantage: You will not be liable to pay a gift tax on the presents that you shower on your mother.
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