How to financially secure your sister’s life this Raksha Bandhan:Investment options to choose instead of gifting money

Rakshabandhan is a festival of love, trust and promise of protection between brother and sister. On this day, the sister ties a rakhi on her brother’s wrist and wishes for his long life and prosperity. The brother also enhances the sweetness of this relationship by giving her gifts according to his capacity. These gifts are usually clothes, jewellery, gadgets or cash. However, with changing times, the perspective of giving gifts is also changing. In such a situation, you can give your sister such gifts that provide her financial support in the long run. The special thing about financial gifts is that their utility does not end with time. Therefore, today we will talk about good financial gift options for sisters on Rakshabandhan. We will also find out that- Expert- Kushagra Mohan, Financial Expert, Co-Founder, Niksepa Capital, Lucknow Question- What can be the best financial gift for sister this Rakshabandhan? Answer- This time give such a gift to your sister that will also help strengthen her future financially. This can be the beginning of her savings, investment or financial security and can be useful to her for a long time. Question- What are the better investment options than money? Answer- Apart from money, there are many such financial gifts that can be chosen according to different needs and financial goals. These include options related to savings, investment and financial security. See all options in the graphic- Question- How financial gifts prove to be more useful? Answer- Cash often gets exhausted in day-to-day expenses, whereas financial gifts can provide benefits in the long run. These help in strengthening savings, investment and financial security. They can also prove useful for big financial goals like education, buying a house or retirement. Question- How to gift SIP investment scheme to sister? Answer- SIP cannot be directly ‘gifted’ to anyone. For this, investment needs to be started in the sister’s name. See the complete process- Question- How to gift mutual fund units to sister? Answer- This facility is not available with all mutual fund companies or all funds. For this- Question- How to gift shares? Answer- Understand it through pointers- Question- Can ETFs (Exchange Traded Funds) be gifted? Answer- Yes, ETFs are also kept in Demat accounts like shares. They can also be gifted. The process is almost similar to shares. Question- Would it be right to gift government bonds or RBI bonds? Answer- This completely depends on the type of bond. Not all government bonds or RBI bonds can be gifted or transferred. For this- Question- Which financial gift is better according to your sister’s age and requirements? Answer- The same financial gift may not be right for everyone. Financial priorities change at stages like education, job, marriage and retirement. Therefore, the gift should also be chosen accordingly. See all options in the graphic-
Question- Is it better to buy gold or invest in mutual funds? Answer- Mutual funds are a better option for building wealth in the long term. However, if the objective is to keep a safe asset, then buying gold may be better. Question- Is gifting digital gold on Raksha Bandhan a good option? Answer- Yes, you can invest with a small amount and there’s no worry about purity or safe storage. However, before buying, do check the platform’s credibility, charges, and terms of buying and selling. Question- When is it right to gift insurance policy instead of an investment scheme? Answer- If the sister does not have health insurance, then gifting health insurance before investment can be more useful. On the other hand, if the family is dependent on her income, then term insurance can be a better option. Question- If a fixed amount is invested every Rakshabandhan, how much fund can be built in the long term? Answer- If you continue investing consistently, then with compounding (interest on interest), the value of investment keeps increasing over time. Question- What mistakes should not be made while giving financial gifts? Answer- Before investing, it is important to understand its terms, risks and necessary rules, because a small mistake can increase trouble later. See in the graphic which mistakes should be avoided-
Clothes, jewellery or cash have their own value. But financial gifts can also help strengthen your sister’s financial security and future. Even a small investment chosen with the right information can become a big support over time.