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Raksha Bandhan: Financial Gifts For Your Siblings

IndianMoney.com Research Team | Posted On Thursday, August 23,2018, 04:49 PM

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Raksha Bandhan: Financial Gifts For Your Siblings

 

 

 

Raksha Bandhan is almost here and you are very excited! It is one of the most cherished festivals in India and signifies the strong bond between brothers and sisters.  

Sisters tie a sacred thread called ‘Rakhi’ on their brother’s wrists and wish them the best of everything. Brothers in turn promise to protect sisters throughout their life and bestow gifts on them.

Sisters visit brothers, spend quality time with them, eat scrumptious meals and sip tea in the evening rains. In some parts of the country, both brother and sister tie Rakhi’s on each other’s wrists.

You may gift your sister an attractively wrapped chocolate box or even money or some gold. Why not ditch the usual gifts this Raksha Bandhan and gift her something truly memorable? What can be better than gifting a unique and unconventional gift like financial security?

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Raksha Bandhan: Financial Gifts For Your Siblings

1. Gift a Health Insurance policy:

 

What better way to protect siblings from costly hospitalization, than a health insurance plan? This is one of the best ways a brother or a sister can express true love for each other.

With sedentary lifestyle, insurance is very important. This Raksha Bandhan, buy a health insurance policy for siblings. The least you can do is ensure the financial well-being of your brother/sister from costly hospitalization in a medical emergency.  Some health insurers also offer wellness programs to encourage policyholders to take care of their health. Buy a health insurance plan which provides suitable cover for your siblings with minimum exclusions.

 

2. Start a Systematic Withdrawal Plan (SWP):

 

If your brother/sister is studying or has just started earning or is soon going on a sabbatical, gift them a mutual fund with the Systematic Withdrawal Plan (SWP) option. An SWP is a smart investment tool which gives returns on your investment, along with regular income. Start an SWP and encourage your brother/sister to invest savings, along with your financial contribution.

With SWP an investor can withdraw at regular intervals (monthly, quarterly, half-yearly and annually) and also earn returns. You can also encourage siblings to reinvest the withdrawn amounts back into a mutual fund scheme.

 

SEE ALSO: EPF Investment: Is It Good?

 

3. Start a Systematic Investment Plan (SIP):

 

Systematic Investment Plan (SIP) is a method of investing in a mutual fund scheme. SIP has the power to fund sibling’s financial goals and dreams, be it travelling, signing up for a much needed online course or establishing a business.

SIP is just a click away. With SIPs you can invest a certain amount regularly (say monthly, quarterly) instead of a lump sum. With SIPs you can easily achieve financial goals. Invest in SIPs with just Rs 500.

Mutual Fund houses are now offering Mutual Fund schemes, with free life insurance. Return on investment is why you invest in mutual funds. Check the mutual fund and evaluate its performance, before investing in it. A right mutual fund has a proven track record of generating consistent returns. Chase returns and not insurance in mutual funds.

 

4. Help in paying-off liabilities:

 

This is probably one of the most meaningful and unforgettable gifts. Who said paying-off liabilities necessarily means a financial contribution?

Yes, it’s great if you can settle sibling’s loans. However, apart from monetary help, you can also help them restructure liabilities or rebalance their portfolio and help them earn greater returns. You may also introduce them to a credit counselor or a financial advisor and pay the advisors fees. This will go a long way in securing long-term financial health.

 

SEE ALSO: 4 Reasons To Invest In Direct Mutual Funds

 

5. Gift a Post Office Monthly Income Scheme (MIS):

 

Post Offices do more than just deliver Rakhi’s and letters. They offer various savings schemes to encourage financial security and the well-being of citizens. One of the most attractive post office schemes is the Post Office Monthly Income Scheme (POMIS). With POMIS the investor is guaranteed a fixed monthly income. POMIS accepts a minimum investment of Rs 1,500 a year and a maximum of Rs 4.5 Lakhs.

Financial gifts go a long way in securing the future of loved ones. They not only encourage a disciplined investment approach, but also give good returns.

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