With the holidays around the corner, people are scrambling to get gifts for their loved ones. Have you figured out what you’re giving? Some people turn to cash. It’s straightforward and very versatile. As impersonal as it appears, money is a very practical option.
But what if you want to give something more meaningful? How about giving an investment? If this sounds interesting, then read on and find out what investments can make good gifts.
A time deposit
A step above cash is to actually gift a time deposit. Through interest, it grows the money they would have spent on other things. It doesn’t take a long time to mature, too. You could put money in a time deposit under a person’s name in December and give the money come New Year.
A unit investment trust fund (UITF) or mutual fund
Here’s another gift idea: Put some money in a UITF or a mutual fund for them. Unlike time deposits, you can’t invest in a UITF or a mutual fund under someone else’s name. What you can do is think of when you want to give the earnings from the investment. This will determine your holding period when you take your suitability assessment.
Stocks in a big company
Another option you have is to buy stocks for them. Aside from the possibility that the value will increase, it may also grow with dividends. You can make it even more special if you buy stocks in a company that means something to them. For example, you can buy stocks in a corporation that owns a restaurant they love going to.
There is a chance that the corporation you’ll choose will be one of the blue chips. These are companies that are so big you already buy their products or services regularly or know someone who does.
When you’re giving investments as gifts, you’re showing your thoughtfulness because your gift may make their future better.
