Has your work or life in general kept you occupied and you haven't had a chance to tell your dad how much you love and care for him? This Father's Day make sure you convey your feelings by getting him something that he appreciates.
The online portals have a host of fancy gift ideas to choose from but you can invest in making your dad's future financially stable with easy returns. An out of the box thinking can make for a special Father's Day gift for your dad.
Let's look at some of the investment options that are sure to bring a smile on your dad's face and ensure financial stability.
Fixed Deposits are a good old-fashioned savings fund that can make for a perfect gift for your dad this Father's Day. You can fix a lump sum amount with a bank or post office for a particular duration.
If your dad is a senior citizen, the FD will qualify for a higher rate of interest. Considering the safety and risk-free returns it is highly likely that your dad will love your gift.
Recurring deposit is another prominent saving scheme where one can invest a minimal amount and build a corpus. RDs are low risk and ensure guaranteed returns. Under this, a certain amount is invested every month for a specified term and at the time of maturity the principal amount and interest earned is payable to the individual. A minimum amount of Rs 500 to 1000 is usually deposited depending on your bank and the tenure extends from 6 months to a period of 10 years. Go for a recurring deposit if your dad is not retiring anytime soon.
Investing in mutual funds is among one of the best investment strategies that can make for the perfect gift even if your dad is not well-versed in finance. Mutual funds offer lucrative returns but come with a considerable amount of risk too. One can consider investing a small amount to begin with but make sure you invest in those equity oriented mutual funds which have a good record. When the retirement time is near, you can pull out the corpus. One can choose to invest in mutual funds monthly income plans (MIPs) which provide monthly income to the investors.
Pension scheme/Life insurance
If you are in your twenties and your father is approaching retirement age it is a good time to invest in a pension plan or buying an insurance policy that comes with money back benefits. Some plans and insurance provide entry at the age of 65 years. After completion of the policy tenure, the policyholder is provided with monthly income. Most pension plans come with tax benefits for the policyholder. Keeping in mind your dad's age, you can choose a plan that can meet his retirement needs.
If your dad has ever wanted to invest in gold, then Gold ETFs will make for a perfect financial gift for your dad. Gold, in any form, is an attractive investment option and ETFs are similar to purchasing the yellow metal in an electronic format. Gold ETFs offer flexibility, liquidity and tax efficiency while ensuring your investment in the yellow metal. It can be bought and sold anytime on stock exchange, at the prevailing market price. It's time to surprise your dad with a gift that is likely to ease off some monetary responsibility from his shoulders.