Best gifts for your sister on this Raksha Bandhan

Today is Raksha Bandhan, a festival showcasing the beautiful brother-sister relationship that is celebrated in large parts of the country. In this festival, the sister ties a rakhi or amulet on her brother’s hand and in turn asks him to protect her (raksha).

 With changing times the meaning of ‘raksha’ has changed from physical security to financial security. At a time of rampant job insecurity, providing a financial shield or financial ‘kavatch’ for one’s sister is very important. Below are some ways of doing that.

 Buy insurance

 Multiple layers of security will be needed in order to not only protect her but also secure her future. Before anything else, the brother should protect against the downside. The best and the first way to do this is to buy insurance. A term (life insurance) policy and a medical (health insurance) policy at a young age is one of the best protections a brother can offer his sister. Enrolling the sibling in a comprehensive health insurance plan will give her the security to withstand financial shocks on account of health issues. Rising hospitalisation costs have been a big reason for shattered dreams.

 Draw up a financial plan

 While buying insurance cover is advisable across the board, the next few recommendations are if the sister(s) in question is/are not quite financially aware. If so, the next step is to sit with her and plan her future. Understand her goals and either advise her or, better still, accompany her on her visit to a financial advisorto flag her goals. This will not only help in connecting financially but also emotionally.

 More importantly, the brother can oversee her financial planning on a regular basis and assist her in case a course correction is needed.

 Help her save for her financial goals

 Give her pointers about a regular saving instrument that gives a good return over the long term. An equity mutual fund investment through a systematic investment plan (SIP) in a good asset management company, for instance, is a good wealth builder that can ensure her financial security in the long term.

 Depending on the sister’s age one can select the type of mutual fund to invest in. If she is very young, say, her brother can consider gifting her an SIP of a small-cap equity fund from a good fund house that has a fund manager with an established record.  

 With her risk and long-term goal covered, next comes investments to meet her other goals.

 Gold is good, but go digital

 One can rarely go wrong with gold but rather than gifting jewellery, the sibling can introduce her to sovereign gold bonds that are announced by the central government regularly. These interest-bearing bonds stay in the demat account of the holder which not only protects against theft but also allows the gold to stay in her account all the time.

 The gift of financial education

 The gift of knowledge is the biggest gift of them all. Enrol your sister in a programme that will educate her on finance and help her understand various financial instruments and the calculations behind them. An educated girl means an educated family and an educated family is an educated nation. The girl can empower the family to save and invest wisely. Increased savings will not only help secure her family but also help in nation building.

 By giving your sister a financial gift, brothers are not only given a chance to build and secure her future but an opportunity to help the nation too. That will celebrate the true spirit of Raksha Bandhan!