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

The festival of Raksha Bandhan is dedicated to the celebration of cherished bonds between the siblings. This year Raksha Bandhan will be celebrated on Wednesday, August 30. However, the rituals of Raksha Bandhan are not complete without giving gifts to your sister.

This Raksha Bandhan you can make the occasion more special for your sister by gifting her something that can financially secure her future and even encourage her to invest more. Traditional gifts also come at a price, but instead of spending the money on expensive items you can invest the money in a savings instrument for your sister.

Here are some of the most preferred financial gifting ideas that can make this Raksha Bandhan special and memorable for the siblings.

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.