Raksha Bandhan is an auspicious occasion of love, protection, and bonding between a brother and a sister. As a brother, you would typically gift your sister with cash, jewellery or some lifestyle gifts on this occasion.
This year, you might consider choosing a financial gift for her to better protect and secure her future.
Says Shweta Jain, financial planner, CEO and founder of Investography, a financial planning firm: “You could always discuss with her how you manage your money, investments and taxes, and encourage your sister in taking steps towards financial independence. That would be a great gift, indeed.”
So, here are five financial gifts you could consider for your sister this Raksha Bandhan.
Savings Account: You could help your sister open a savings bank account and make the initial deposit as a Raksha Bandhan gift. The savings account will help her earn interest on the deposit and will also keep the money safe for use later during some need.
Fixed Deposit (FD) or Recurring Deposit (RD): You could also deposit a lump sum in her savings account and ask her to open a fixed deposit account with the sum. Else, you could get her to open a recurring deposit account for which you could transfer the amount to her account every month before it is deducted from her savings account and deposited in her recurring deposit account. Both FD and an RD will fetch her with a higher rate of interest compared to a savings bank account. Both FDs and RDs can be used for short-term goals.
Start A Systematic Investment Plan (SIP): A mutual fund investment through an SIP could be a great gift for your sister this Raksha Bandhan. You could help her invest in a mutual fund scheme through an SIP for which the amount would be deducted from her savings bank account. You could either invest a lump sum or have the money transferred to her account before the due date of the SIP. An SIP would be a great way for your sister to invest in the stockmarket with relatively less risk.
Gold or Gold ETFs: You could always gift your sister with gold jewellery. Says Jain: “The traditional gifts of cash and gold and silver are still as relevant, maybe some form of it could be updated keeping in mind our preference for travelling and minimalism (at times).”
But better still, you could get her to invest in gold exchange-traded funds (ETFs). Gold ETFs are listed on the exchanges. Besides, the purity of the gold is also guaranteed, and each unit is backed by physical gold of high purity. Gold ETF is also a tax-efficient way to hold gold, as the income earned from them is treated as long-term capital gain.
To make the investment, you could get her to initiate the investment and have the money transferred to her account at the required interval to help her continue with it.
Health Insurance: You can buy a health insurance plan for your sister, which will protect her with the necessary medical and hospitalisation expenses in times of an emergency. You can choose and customise the policy to include critical illness, too. Go for one with a cashless claim benefit.