This Raksha Bandhan, Give Financial Gift to your Sister

Published On: 20-Aug-2021

The brother-sister relationship is one of the sweetest in the world. Raksha Bandhan, an age-old festival, celebrates this divine and precious bond. A sister ties Rakhi on her brother's wrist to remind him about his responsibility to protect her. The brother, in turn, swears to protect her under all circumstances and by all means.

Financial protection is one such protection that is needed in this day and age of uncertainty. As a loving and caring brother, you can help provide financial protection to your sister by considering the following options as a Raksha Bandhan gift for her.

Start an SIP

An SIP or Systematic Investment Plan is an investment tool where you regularly invest in a mutual fund of your choice through small contributions. SIPs help in developing a habit of investing regularly and in a disciplined manner. Investors can start with a monthly SIP as low as Rs 500 – Rs. 2,000, depending on the mutual fund scheme, with any reputed asset management company. 

Start an SIP for your sister this Raksha Bandhan and keep investing in it on her behalf.

Health insurance Plan

Consider buying her a health insurance plan to secure her medical expenses. Health insurance plans provide bonus coverage or increase the coverage value if not claimed over the years. Hence, by starting early, you can help her gain an advantage.

Investments in Gold ETF

You love the grin on the face of your sister when she gets those new gold earrings or bangles. However, physical gold is unlikely to yield great value in future. Apart from the usual safety concerns, there are other factors such as purity, safety, depreciation and liquidity while buying gold as an investment.

However, you can consider gifting alternate gold investment instruments such as digital gold, sovereign gold bonds or gold ETFs. Gold ETF is the most popular alternative investment in gold. 

Gold ETFs (Exchange Traded Funds) are the mutual funds that exclusively invest in gold, and their return closely follows the return on the gold prices. You can consider gifting her some units of the gold ETFs that tracks the price of gold. 

Smartphones, watches, perfumes, or any such usual Raksha Bandhan gifts for sisters are not wrong, but it is high time for you to make her understand the importance of financial planning. The idea is to gift her something that she can appreciate over time and teach her the importance of investing in appreciating assets. Your love for your sister keeps growing with time. It should be no different about your gifts as well.

Disclaimers:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visit https://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under "Intermediaries/market Infrastructure Institutions". All complaints regarding UTI Mutual Fund can be directed towards service@uti.co.in and/or visit www.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.