The sibling relationship is extraordinary and beyond description. The bond between brother and sister cannot be explained with words only especially in India, where the brother-sister relationship becomes all more important as there is a festival called ‘Raksha Bandhan’ which symbolizes the love between brother and sister.
Meaning of ‘Raksha Bandhan’
This Hindu festival is made up of two words – ‘Raksha’ and ‘Bandhan’. ‘Raksha’ stands for protection and ‘Bandhan’ stands for the ‘tie’. Together, it symbolizes the eternal bond between brother and sister. However, the festival is not only for brothers & sisters but also cousins, sister-in-law, fraternal aunt, and nephew and other relations.
On this day, a sister ties ‘Rakhi’ on the wrist of the brother in order to pray for his happiness, prosperity, and health while the brother in returns offer gifts and promise his sister to protect her with his own life and won’t let any harm comes under any circumstance.
In doing so, the brother gives many gifts to her sisters like chocolates, toys, and much more. This year, we would encourage you to give your sister something that can really help her in future and make her more secure towards her life even without your presence. Therefore, this year, you can pick from some financial gifts to give your sister that not only bring long-term happiness into her life but also make her financially secure and achieve financial goals in the long-run.
Financial Gifts to Give Your Sister this Raksha Bandhan
Here are the few financial instruments that you can consider to gift your sister this Raksha Bandhan and protect her financial future.
Gift Mutual Fund to Your Sister
Gifting a mutual fund to your sister on Raksha Bandhan can help her assets grow over time. It is a financial instrument that can generate returns over the long-run. Mutual funds can provide the financial security that your sister will need in her future. Mutual funds tend to be less volatile and have shown remarkable growth compared to direct equity investments. Ask your sister about her life goals – consider her goals, and decide among the types of mutual fund – equity mutual fund, debt mutual fund, or balanced mutual fund, which meets your sister’s future financial goals.
Start a SIP for your Sister
Instead of giving cash in an envelope you can open a systematic investment plan (SIP) mutual fund scheme under your sister’s name to help your sister in her financial goals. With SIP, one is allowed to invest a fixed amount of money in a hassle-free way on regular intervals of time. With the financial literacy in India, the domestic equity market has grown manifold and expected to continue the same in upcoming years. And seeing the stats of last 5-10 years, it is clear that SIPs have given better returns than traditional investment instruments like gold and silver.
Buy a Health Insurance Plan
For better health of your sister, you can strengthen the bond between you and your sister by taking care of her health. In doing so, you can buy a health insurance plan for your sister and pay on her behalf. Buying a health insurance plan for her will show your love and care for her. Also, in any future health-related issues, your sister will get health benefits in terms of proper medical treatment and hospital expenses.
Buy Gold ETF
Instead of giving the physical gold in the form of jewellery, you can gift the gold ETF to your sister this Raksha Bandhan to give her protection from any future economic crisis. Gold ETFs are passive financial instruments that are based on price movements and investments in physical gold.
By investing in Gold ETF you can secure the future of your sister and give meaning to the brother-sister bond by securing her future financial goals.
Fixed Deposit Plan
Lastly, you can also gift your sister by doing a fixed deposit plan under her name. By doing this, not only the investment will be free from market risk but also easy for your sister to not monitor the equity investments. However, the rate of interest is quite low but at least by making a fixed deposit, you can provide your sister for short-term needs.
Hope, this article helped you in a way you expected it to be. Nevertheless, if you have any query or would like to add something then doesn’t forget to mention in the comment section below.
Happy Raksha Bandhan!