Personal finance

Raksha Bandhan 2021: Gift Your Sister These 4 Threads Of Financial Protection

If you are a 90s kid, there is no way you will not remember the iconic Hum Saath Saath Hain, the ultimate family binge favorite, where Neelam, sister to three brothers (Mohnish Bahl, Salman Khan, and Saif Ali Khan) celebrates Raksha Bandhan with them with full pomp and fervor, as they promise to stand by each other through thick and thin.

Fast forward almost a decade or so, and you have Priyanka Chopra and Ranveer Singh in Dil Dhadakne Do, symbolic of a heartening sibling relationship as they help each other tide through their joys, miseries, and occasionally, their tiresome parents as well!

Honestly put, siblings are our first friends, saviors, and partners-in-crime in life. From helping you sneak out to hiding your secrets from parents to occasionally helping out with last-minute monies and good advice, Raksha Bandhan is perhaps the best day to commemorate this amazing bond. And as a brother, the best present you can give your sister, as a brother, is the gift of independence, confidence, and freedom. So, here are four financial gifts you can give your sister, so that she is financially secure and self-reliant, in all rights.

Protect her from the vagaries of life with a Health Insurance

Life is uncertain, and these past years have been proof enough, with the pandemic completely overtaking our lives. In times like these, having comprehensive health insurance covering various both temporary and terminal ailments, injuries, sound boarding her from sudden, huge medical expenditures.

According to Viral Bhatt, Founder, Money Mantra, “Sisters are synonymous with dedication and unconditional love and often she ignores her own health while making things possible for everyone else. The threat of facing a major ailment is always present, considering today’s changing lifestyle of long working and immense stress, amongst others”.

For this reason, buy a health insurance policy for her with a thorough cover, so that she is protected from the distress of hefty medical bills. An insurance policy “in her name can extend extra peace of mind for her and also, her child’s well-being”, explains Sanjeev Dawar, a Pune-based personal finance professional.

Add bling and assets to her life

Move over gifting your sister traditional jewelry, and instead, gift her a financial asset like stocks, mutual funds, Sovereign Gold Bonds (SGBs), gold saving funds, or gold ETFs which can reap her brilliant returns over the long run. Enhance her portfolio with high-return equity stocks that can earn her good yields in the long run, along with cushioning the same with gold, considered a safe and secure haven in times of economic volatility.

“Gifting her financial assets or lucrative alternatives to physical real estate like REITs have the potential of turning into big-ticket investments”, says Nema Chahaya Buch, a financial planner.

Consistency of investments with SIPs

Shifali Satsangee, a veteran MF distributor, recommends starting with SIPs. “ It would be appropriate that instead of gifting her cash or material things, a brother could invest that money in a mutual fund scheme (either through a lump sum, STP (Systematic Transfer Plan) or SIP route) as a gift to her present and future”.

SIP or Systematic Investment Plans are perhaps the best way to get started in the world of investing since you can periodically and regularly set aside a specific amount to invest in mutual funds. Consider this. You invest an amount as low as Rs 500 per month for her over a period of 10 years, starting today. Assuming the rate of return to be at 12%, you’ve invested Rs 60,000 over this time period. As per the SIP calculator, you’ll have generated almost Rs 56,000 in returns. Imagine, this amount can be used for her higher education, professional ambitions, or simply for that solo trip, she has wanted to take for so long! What better gift can there be!

CFP Nisreen Mamaji also advocates for SIPs very strongly. “SIP is a long-term investment route. Typically, if you continue to invest over a long period of time you get the advantage of rupee cost averaging, which means that the purchase price that you will pay for the units will be much lower than the average price of those units. For this to work in your favor, you should continue as it is, irrespective of the market because, at the end of the term, that’s the only surefire way to create the corpus for the goals that you have created”, she elaborates.

Invest in HER!

And finally, what better assurance can you give your sister than investing in her education and financial well-being. Raksha Bandhan, indeed, is a celebration of the very special bond between brother and sister. But today, start by giving her something unconventional-knowledge. How? Encourage her to read up about financial planning by gifting her books and learning subscriptions, so that she takes up the mantle of becoming financially literate and confident.

Satsangee further illustrates, “ A brother can try and propagate a sense of responsible money management to his sister. He could advise her to realize her true financial potential by start investing early, focus on goal-based investments, assign SIPs to each goal, create a contingency fund, route her savings into tax-efficient instruments and derisk her portfolio by spreading her investments into different asset classes so that a solid corpus is created for her year on year thereby making her financially comfortable and independent”, she signs off.

So, go ahead, celebrate a memorable, meaningful, and empowering Raksha Bandhan with your ally in all things good and bad!

Life is uncertain, and these past years have been proof enough, with the pandemic completely overtaking our lives. In times like these, having comprehensive health insurance covering various both temporary and terminal ailments, injuries, sound boarding her from sudden, huge medical expenditures.


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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