Five Fabulous Financial Gifts This Raksha Bandhan For Your Sister

Raksha Bandhan is a symbol of the bonding between brothers and sisters. It is that time of the year when brothers renew the pledge of protecting their sisters. It is celebrated by the sister by tying a symbolical ‘Rakhi’ on the brother’s wrist, who in return showers her with gifts.

So, why not give her some real security this Raksha Bandhan that may not only prove to be financial asset in future, but also carries the potential to multiply? It may not sound as attractive as a fancy gift neatly wrapped, but it will surely keep your sister in good stead and will also guide her to be on a smart saving/investment path. Let us take a look at five financial gifts this Raksha Bandhan that your sister will treasure for a lifetime.

LIQUID FUND

Apart from FD, a liquid fund is another low-risk investment product that you can gift to your sister on this Raksha Bandhan. If your sister is unsure about how she is going to use the fund or if she wants to use the money for a near-term need such as going on a holiday or purchasing property, a liquid fund is a good option. It offers returns similar to an FD, doesn’t have any exit charges, and can be redeemed within a day.

HEALTH INSURANCE PLAN
Considering the today’s lifestyle and rising health issues, you can also pay premium for a health insurance policy on your sister’s behalf to protect her from uncertainties. There are several websites which can help you to purchase these policies within few minutes. However, you will not get tax benefit against the health insurance policy you gift to your sister. 

MUTUAL FUND

Investment in a mutual fund scheme in your sister’s name could be a good gift option. Not only can it prove to be a fast-appreciating asset, it can also help your sister learn about mutual fund investing, and how it can help her achieve various financial objectives. By initiating the mutual fund investment, you can also guide your sister about growing her money through the systematic investment plan (SIP) mode. A mutual fund investment can give attractive returns and also inculcate investment discipline in the long term.

Gold ETF
Gold is another option to gift to your sibling on this day. The yellow metal will protect her from any economic crisis and will act as hedge during volatile times. It is advisable to gift gold ETF or gold mutual fund as physical gold carries risk of storage and holding cost. Gold ETFs are passive investment instruments that are based on price movements and investments in physical gold.

FIXED DEPOSIT

If you are looking for a safe investment gift, then a fixed deposit (FD) is a good option. The prevailing interest rate on a corporate FD ranges from around 6 percent to 8.25 percent. Some NBFCs offer slightly higher returns. If your sister’s age is close to the 60s, an FD could be a better choice over an equity investment.

While giving a valuable gift such as financial product or investment, try to figure out the financial objectives of your sister and give something which can help her to achieve the objectives on time.