In a few weeks, the festive season will commence with Raksha Bandhan. The importance and history of this festival dates back to thousands of years. Sisters tie ‘Rakhi’ to the brothers’ wrists and pray for their well-being.
Your sister must already be planning for the ‘Rakhi’ but have you thought about her return gift? Here are five financial gifts that are ideal for this festival.
- Begin a Systematic Investment Plan [SIP]
To achieve financial goals, you need to invest systematically in a sensible way. Most people consider recurring deposits; however, the rate of interest is lower. Moreover, the income is taxable further reducing the returns. In comparison, an SIP is a mutual fund, which is able to deliver better returns. You may consider an SIP in an equity fund if you do not mind staying invested for the long-term.
- Invest in a Fixed Deposit [FD]
You may invest in an FD, which will allow your sister to earn higher returns and give her financial security. Compared to a zero balance savings account, the interest rate on FDs is higher. It is important that you choose a reliable and reputed financial institution to invest in the FD.
- Purchase a risk cover
The modern lifestyle poses a big threat to an individual’s health. If you want to ensure financial security for your sister, consider purchasing a health insurance plan for her where you pay the premium on her behalf. Alternatively, you may choose life coverage to provide financial security. A term plan is a pure life cover and it will help indemnify risk.
- Invest in paper gold
Gold is a popular investment in India since years and provides security in case of a financial crisis. You may consider purchasing gold for your sister, which provides her with security. However, consider investing in gold Exchange-Traded Funds [ETFs] or gold savings schemes instead of physical gold. Gold ETFs are traded on the exchange and are a convenient way to invest in this precious metal. Gold savings schemes invest the corpus in underlying gold ETFs and benchmark performance against physical gold. Therefore, both these are good options to gift your sister this Raksha Bandhan.
- Open a savings account
A zero balance saving account in a well-reputed bank is also a good gifting option for your sister. You may deposit the amount you want to gift her. It will not only allow her to earn some interest but give her the freedom to use the money as per her choice.
The aforementioned gifts are not only thoughtful but also provide her with financial freedom and security. Consider these, this Raksha Bandhan and fulfill the promise of protecting your sister.