Financial Plan

This Wedding Season Give Your Loved Ones A Truly Special Gift


The wedding season is here and a very close relative is ready to start a new journey in his life. You are thinking about what is the best gift that you may give him. You do not want to gift the usual things such as crockery, watch, or cash. You want your gift to not only be special but something that will benefit him for the long-term.

Why not gift him something like a long-term investment from which they could reap adequate benefits in the future! Here are three unique ideas that are not only special but also beneficial in the longer period.

  1. Term insurance plan

One of the investment options that you may gift your relative is a term insurance policy. The most precious gift is life and the best way to protect against any untoward incident is through insurance. The premium on a term plan for a sum assured of INR 1 crore for a 30-year old is between INR 10000 – INR 12000.

You may gift him an INR 1 crore term plan where you pay the premium for the first couple of years. The newlyweds may continue paying the premium thereafter. However, if you think they would not continue paying the premium, you may consider a single premium term plan. This ensures the term insurance does not lapse because of non-payment of the premium.

  1. Health insurance cover

You must have heard the saying “health is wealth”. Another excellent gift idea is to purchase a health insurance plan for the newlyweds. Moreover, you may consider including maternity coverage in case they decide to start a family after a couple of years. Most health insurance investment options have a waiting period before maternity expenses are covered. An INR 5 lakh health insurance policy costs between INR 8000 – INR 9000 per annum with reference to premium.

  1. Mutual fund – Systematic Investment Plan (SIP)

There are several benefits of investing early in a mutual fund. It has the potential to deliver higher returns because of the power of compounding. The principal investment earns dividends, which are reinvested. The reinvested amount further earns dividends, which enables them to accumulate wealth over the long-term. However, you may not have a huge lump sum to invest in mutual funds for the newlyweds. There is no need to lose hope. You may consider starting a mutual fund SIP for them.

The newlyweds may not have any plans to invest in systematic plans in the immediate future. However, if you decide to start one for the newlywed couple, their bank will make sure that they continue to in the same later in the future. The SIP installment amount may be directly debited and invested in your chosen fund on a particular date.

This will provide them with a head start in their financial planning thereby encouraging them to invest and save regularly to safeguard their future. It is recommended you consider investing in a diversified equity fund that has the potential to deliver good SIP returns over the long-term.

Starting a systematic mutual fund investment plan is not difficult or expensive. Most asset management companies (AMCs) allow you to commence a systematic investment plan with as little as INR 500 per month. Moreover, you may start or discontinue the investment plan as and when desired. Additionally, the installment amount may be increased or decreased as per your financial situation. This provides the newlyweds with the much-needed versatility as they begin a new journey of their lives.

Potential difficulties

When you want to commence an SIP, there may be certain regulatory difficulties. AMCs do not often accept third-party payments, which may pose some hurdles. Furthermore, insurance companies may refuse the policy in case you do not have an ’insurable interest’ in the person being insured.

To overcome these difficulties, you may include the couple in your plans. You may speak to them beforehand and tell them about your idea. This allows you to provide the documents that are required as per the norms.

AMCs offer multiple mutual fund schemes with different investment philosophies. Some plans invest in debt while others invest in equities. A few mutual fund schemes invest in a combination of debt and equity. It may be difficult to choose the best scheme that delivers the maximum SIP returns.

To help you overcome this limitation, you may consider using ARQ, the proprietary investment engine provided by Angel Wealth. As a core highlight of Angel Wealth’s mobile application, it uses advanced algorithms and quants to evaluate and analyze over a billion data points. This is then matched with your investment goals, lifestyle, and risk profile.

Download the Angel Wealth mobile app and give your loved ones a truly special gift as they embark on a blissful journey of life.

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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