This Mothers Day help your mom grow her money by following this simple step

They say, a human learn more fast by seeing than reading. True, in case of saving. 

Household mothers tends to save up small amount every month from the monthly budget. And every kid has brought up seeing that. 

This Mother's Day, if you are planning to gift any expensive and luxurious gift, we give you a better option. Why not help her in growing her monthly savings?

Whatever amount a mother saves lacks compounding. So, why not use the amount where it grows? The best option is Mutual Funds. 

According to Ajit Narasimhan, Category Head - Savings and Investments, BankBazaar.com, "Mutual funds provides good returns, especially over the long term. Unlike popular perception, investing in MFs need not be a complicated affair. Today, a smartphone and the Internet make it very easy to make and track MF investments. The quantum of investment can be as little as Rs 500." 

Thinking how will your mom do it on her own? These days every thing is just a click away. The entire process of searching, comparing, and investing cab be done with a smartphone in a matter of minutes. 

Everything, including the verification, is completely online and paperless. The investment and fund performance is shown on a dashboard, so that investors understand how their investment is doing on a daily basis. 

The whole idea has been to simplify the process and make it intuitive enough especially for new investors, Narasimhan added. 

Further, if you are thinking that your mom already have a fixed deposit or savings account then why to go for MFs? Then, here's the answer. 

FDs are short-term in nature. They come with a lock-in of 5 years. The biggest disadvantage of FDs is that the interest income is taxable as per the relevant tax slab. This eats into the returns earned in a major way. The initial returns of 7-9% become much lesser after tax.

Mutual Funds are divided based on the asset class, and one of the most safest option is Debt Funds. 

Debt Funds are the funds that invest in debt instruments e.g. company debentures, government bonds and other fixed income assets. They are considered safe investments and provide fixed returns.

However,  Debt Mutual Funds do attract the same rate of tax as of FDs during the first year. However, it is taxed at a lower rate than FDs between the first year and third year. And, it becomes tax free from third year onwards. 

So, this Mother's Day do not waste money in buying expensive items, allow your moms to grow her saved money.