Every Indian festival has specific customs and rituals. One of the most popular festivals in the Hindu calendar is Raksha Bandhan, which is celebrated across the country. On the day of Raksha Bandhan, tying rakhis and exchanging gifts is customary. While many of you pay extra attention to choosing a gorgeous rakhi, selecting the perfect gift is generally overlooked.
Rather than purchasing a regular gift for your siblings, invest in these top four financial gifts to protect their financial future this Raksha Bandhan:
1. Mutual funds
You cannot go wrong choosing a mutual fund investment for your sibling this Raksha Bandhan. Whether your sibling wants to travel overseas or start a business venture, the benefits of mutual funds will allow them to fulfil their dreams.
With a mutual fund SIP, you can start investing even with a small amount. Even a tiny sum can grow into a large corpus through regular mutual fundinvestments. Apart from higher corpus accumulation, your sibling can also develop the habit of financial discipline. So, choose a mutual fund investmentthis Raksha Bandhan to secure their financial future in advance.
Gold is another gift to secure your sibling’s financial future on Raksha Bandhan. In times of market volatility, gold acts as a safety net to secure their finances. This rakhi season, gift your siblings either physical gold or invest in a Sovereign Gold Bond (SGB) scheme.
Physical gold can be used to make coins or jewellery, but it has a high holding cost. Instead of gifting physical gold, opt for SGBas they are easier to maintain. SGBs are held in electronic form in the central banks’ records. Moreover, SGB investments also yield returns over their tenure of 8 years.
3. Medical insurance
Besides a secure financial future, the physical well-being of your siblings is essential too. An excellent way to protect your sibling’s financial as well as physical condition is by gifting them a medical insurance policy. With medical insurance, your siblings can ensure that their health complications do not exhaust their life savings.
Medical insurance can cover hospital bills and other health-related expenses. You can gift them a medical insurance plan that covers critical illnesses to give them complete protection.
4. Bank fixed deposit
A safe financial product is the first step toward financial security. This Raksha Bandhan, you can open a bank fixed deposit (FD) for your sibling and offer them a secure investment that yields steady returns.
Unlike regular savings accounts, a bank FD yields higher interest until maturity.
This year, make smart decisions for your siblings that can help them safeguard their life and their financial freedom. Choosing these giftswill also help your sibling attain financial discipline as well as live independently without the fear of financial constraints. Happy investing!
Article Submitted By Community Writer