6 Financial Gifts For Your Sister This Raksha Bandhan

With the start of 'Shravana', the holiest month in the Hindu calendar, begin a number of festivals and events. Nag Panchami, Narali Purnima, Krishna Janmashtami to name a few.

However, the most cherished festival celebrated is Raksha Bandhan.

Raksha Bandhan, as you may know, signifies the brother-sister bond. On this ceremonial day of sibling love, a sister knots a sacred thread, Rakhee, around her brother’s wrist and wishes the best for him. The brother in return promises to protect her through every situation of her life.

Do you reminiscence the celebration and excitement of this day and waiting for it? The exchange of goodies, sweets, chitchat, etc.

Just a few days before Raksha Bandhan, it is common to see men flocking to the market to get the best possible gift for their beloved sister/s. The usual things one thinks of are accessories, smartphone, jewellery, apparel, cosmetic kit, boxes of sweets or dry fruits, and so on. 

But this year, why not consider a unique gift for your sister? Something unconventional.

Here’s a list of financial gifts you could consider this Raksha Bandhan:

1. Start a SIP 
   Systematic Investment Plan (or SIP) a mutual fund scheme can prove to be an effective medium to fulfil your sister’s dream of travelling to a certain holiday destination by planning in advance.
   Maybe, she always wanted to establish her own enterprise. And, helping her make that dream possible will bring her the utmost joy no other materialistic gift would.
   So, the way you can help her build that corpus systematically is via SIPs. 
   SIP is a contemporary and effective mode of investing in mutual funds, available at just one click with a robo-advisory platform. It allows you to invest a certain sum of money regularly—say monthly or quarterly—instead of all in one go, allowing you to simultaneously plan for many financial goals. 
   And who says you need to do something big. You can start with a monthly SIP of Rs 500 and gradually increase the amount with a ‘Step-up SIP facility’. But selecting the right mutual fund/s to SIP in is crucial. Choose one that has a proven track record of generating consistent returns across diverse periods and market cycles. Further, ensure the fund house follows robust investment processes and systems.
2. Purchase a medical insurance in her name 
   Your sister dedicates most of her life to her biological family before marriage and continues to selflessly shower care and love on her in-laws as well. Often, she often ignores her own health while making things possible for everyone else. 
   The threat of facing a major ailment is always present, considering today's lifestyle of long working hours, stress, lack of physical exercise, skipping meals, indulging in junk food, and so on. This lifestyle is the primary reason that a critical illness cover is required today as it takes care of the rising cost of healthcare.
   So, go ahead and buy a medical insurance for your sister and ensure she is adequately insured. Today, you can purchase and renew the health insurance online, effortlessly.
3. Open a bank account for her
   The money you wish to gift can be deposited in this account and could even be invested in a term deposit. This will earn her interest; provide her with a source of income, perhaps pocket money.
   And the bank’s debit card can empower her to use the money lying in the saving account as per her will.
4. Present her a gift card
   Gift cards are prepaid cards offered by banks and widely accepted today at merchandise outlets and online shopping portals. The choice of adding a particular amount is completely yours.
   A gift card can give your sister a chance to choose her gift within one year from the date of issue on account of validity.
   However, cash withdrawals are not permitted. You don’t need to worry about the security of the money, as a gift comes with a unique PIN, plus it’s easy to handle as opposed cash.
5. Consider investing in paper gold
   Gold as an asset class illustrates the trait of being a safe haven, a saviour in times of economic volatility. This can strengthen your sister’s financial security over the long-term, and it is, indeed, a deserving gift for Rakhsha Bandhan.
   But, as far as possible, hold back from gifting physical gold as it carries a high holding cost. Instead, consider investing in gold ETFs and/or gold saving funds on her behalf.
   Gold ETFs and gold saving funds are two smart as well as efficient ways to invest in gold.
6. Help her pay-off liabilities
   Well, this can prove to be an unforgettable gift and a huge relief for your dear sister, to whatever extent you can.
   Besides, help her restructure liabilities, and if you don’t possess the competence, guide her to a credit counsellor or a financial guardian. Pay the professional fee and then pave a corrective course for your sister to follow in the interest of her long-term financial wellbeing.
These thoughtful financial gifts for your sister will not only be cherished but add to her financial security and financial freedom.