From SIPs to Health Insurance: Expert Shares 5 Financial Investments That Can Give You Long-term Returns

When it comes to gifting, few things rival the quiet power of financial foresight. While flowers wilt and gadgets date, a well-chosen monetary gesture has the potential to shape futures. In a world increasingly aware of financial independence and long-term stability, giving the gift of smart financial planning speaks volumes. Here are some insights to guide your way from Nehal Mota, Co-Founder & CEO, Finnovate.

Beneficial Financial Investments

A financial planning session: Maybe you dream of starting a business post-retirement, taking an international vacation, or simply ensuring you are financially self-reliant. A one-on-one session with a financial advisor can help you clarify how much you need to save, how to plan for goals, and what you must do to protect and grow your wealth.

Health insurance: Health insurance is something you should invest in early. If you already have a health insurance, it's still a good thing to get it reviewed by an expert to check if the coverage is sufficient, if it aligns with the rising medical costs, includes critical care, hospital network, and post-hospitalisation expenses. Health expenses can drain finances- prevent that pain before it happens. This isn’t just a thoughtful gift to yourself. It’s a safety net, possibly the most important one.

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SWP: One of our top choices is setting a Systematic Withdrawal Plan. It will provide you with regular income without depleting the initial corpus. It acts as a financial cushion that pays consistently so that her life is stress-free. How SWP works: let's say, you invest ₹1 crore in a mutual fund yielding 10% annually, withdrawing ₹50,000 per month, can still grow your corpus to nearly ₹3 crores over a 20 years period.

FD: If you prefer traditional investments, a fixed deposit can be a good idea. Though it will not give you high return that you might expect but it will give a stability to her portfolio. If peace of mind is your priority, do invest in FD. 

Gold ETF or Gold mutual funds: People love to invest in gold as it provides good returns in the long-run. Instead of buying jewellery, think of investing in gold ETFs, which has given a return in the range of 14-15% in the last 5 years and 30-31% returns in just one year. Just remember, do not over-invest. Allocating 10-15% is enough. You can invest in Gold ETF directly through your Dmat account or go the SIP route via a gold mutual fund.

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