Summary of this article
This Diwali, give gifts that sparkle today and grow tomorrow. Because the people you love deserve more than wrapping paper, they deserve a brighter, safer, more secure future.
A 31-year-old professional stood in a mall, exhausted after a weekend of Diwali shopping. Designer boxes of dry fruits for colleagues, expensive gadgets for family, trendy tech for friends—her cart totaled Rs 78,000. As she waited in the checkout line, a thought nagged at her: Will these gifts still matter six months from now? Will they actually help anyone’s life?
That evening, a conversation with her cousin, a chartered accountant, opened her eyes. The Rs 15,000 spent on a Bluetooth speaker for her brother could, if invested wisely, grow to nearly Rs 66,000 in 15 years. That Rs 25,000 watch for her father could secure a Rs 1 crore term insurance policy for a year. Suddenly, she realized she had been gifting for the moment, not the future.
According to a study by the Confederation of Indian Industry, Indians spend over Rs 1.25 lakh crore during the festive season, with gifting accounting for nearly 30 per cent. Yet 60 per cent of physical gifts are unused, regifted, or forgotten within a year. Money spent vanishes; value rarely stays.
1: Digital Gold: Tradition Meets Technology
Gold has long been at the heart of Diwali gifting. But heavy coins and jewellery come with making charges (15–25 per cent), storage hassles, and pressure never to sell.
Enter digital gold. You can gift 5, 10, or even 0.5 grams through platforms that store it securely in insured vaults. Recipients get certificates, instant liquidity, and full value—nothing lost to conversion.
“Digital gold lets you give the security and sentiment of gold without losing value,” says Venkatesh Naidu, CEO at BajajCapital Insurance Broking Ltd. “A Rs 10,000 gift retains its full worth. The same amount in jewellery? You lose Rs 2,000–2,500 before it even leaves the store.”
Sovereign Gold Bonds (SGBs) are another option. They combine gold appreciation with 2.5 per cent annual interest, are tradable, and tax-free at maturity if held for eight years. A 10-gram SGB gifted to a newlywed cousin becomes a silent nest egg for their new life.
2: Mutual Fund Gift Plans: The Gift That Compounds
Imagine your Diwali gift to your niece funding her college education. Mutual fund gift plans let you invest in someone else’s name. Put in Rs 25,000 as a lump sum or set up a Rs 2,000 monthly SIP.
A Rs 50,000 equity mutual fund investment for a 10-year-old, assuming 12 per cent returns, could grow to Rs 1.55 lakh by age 20: a bike, tuition, or seed capital for a first business. For risk-averse recipients, balanced advantage or debt funds provide stable growth while keeping money secure.
Every statement they receive and every rupee it grows becomes a reminder of your thoughtfulness.
3: Insurance Top-Ups: The Gift of Protection
Not glamorous, but profoundly meaningful. For aging parents, health insurance top-ups of Rs 10–15 lakh could prevent catastrophic medical bills. For newly-weds, a Rs 1 crore term cover costs just Rs 12,000–15,000 annually but secures their family’s future.
“Insurance as a gift challenges social norms because we avoid discussing health or mortality during celebrations,” Naidu explains. “Yet the families who’ve received it - especially when they’ve needed it consider it the most meaningful gift they've ever received. It’s love translated into protection.”
Blend Tradition With Intention
You don’t have to abandon physical gifts. Pair a small silver coin with a mutual fund SIP, or include a gold-themed digital certificate in a festive envelope. Explain the insurance gift with a heartfelt note. The magic lies not in choosing one over the other, but in giving gifts that matter beyond the moment.
This Diwali, give gifts that sparkle today and grow tomorrow. Because the people you love deserve more than wrapping paper, they deserve a brighter, safer, more secure future.
