Raksha Bandhan 2023: Financial gifts you can consider for your sister

Systematic Investment Plan (SIP) is a way by which you can invest in your desired mutual fund. SIP can help your sister in many ways as the accumulated amount can be used for higher studies, travelling to some exotic locations or getting a gadget of her choice. Through SIP, your sister would have benefits like disciplined investments, flexibility, diversification in the portfolio and long-term growth.

Most of the SIP plans under Mutual Funds generally offer around 10-12 percent return over a period of 3-5 years. For a longer investment period the return on investment in certain mutual funds could go up to 14 percent or more. The best part is SIP investment helps to build a corpus fund with small contributions every month.

Instead of gifting any gold jewellery, such as bracelets, chains and rings, as presents on Raksha Bandhan, consider gifting your sister a digital or paper gold. Physical gold not only has a significant holding cost but also there could be depreciation in value. Hence, the digital alternatives are considerably safe. You could choose a gold ETF, which are open-ended funds that follow current market prices of gold.

In the case of gold investment, as the value of digital gold has been appreciating over time, it can be a good choice to give your sister.

You can also give your sister an investment in bonds, as it will diversify her portfolio. An investment in bonds allows a path of easy-to-predictable income and in many situations, the interest in bonds is paid twice a year. Since the investor receives the entire principal amount if the bond is held until maturity, bonds are considered as one of the best strategies to protect one’s capital.

There are different kinds of bonds such as, government securities, Corporate Bonds, Convertible Bonds and Reserve Bank of India (RBI) Bonds.

Consider a health insurance plan to give to your sister on the occasion of Raksha Bandhan. A health insurance plan can be considered as one of the options in light of the escalating expense of healthcare. Blessing your sister with a suitable health insurance plan this festive day will cover major health expenses in future.