Raksha Bandhan is the symbol of bond between a brother and a sister. It is the day when they pray for the well-being of each other. The sister performs pooja of the brother and ties a Rakhi, on her brother’s wrist. Tying of a Rakhi to the brother’s wrist is symbolic of the oath that the brother takes to protect his sister from all evils in her life and also gives a gift to his sister. This is the traditional rituals that are part of Raksha Bandhan. Apart from traditional meaning of Raksha Bandhan, in today’s world providing financial backing is also a form of Raksha. This Raksha Bandhan surprise your sister with some financial gifts that would make her happy and secure her finances.
1) Protect her from Risks
You have taken vow to take care of her for her whole life, gift a Health Insurance by paying premium on her behalf. It would protect her from soaring medical expenses. Also if she is a working woman and is the bread earner of the family, buy her a term insurance so as to ensure that her dependents are financially secured.
2) Plan for her future goals
Start planning for a financially secure future for your sister if she is younger to you and still studying. If you want her to receive the best higher education or contribute towards her marriage, share the financial responsibility of the parents. This would really mean a lot for her. Start investing in an Systematic Investment Planning (SIP) by ascertaining the projected cost of performing the sister’s marriage and most importantly factoring the average rise of costs as well. If your sister is a working woman, gift her an STP. Over a period of time, this would come in handy for any one of her Financial Goals.
The best way to fulfill her long term financial goals is to start investing in mutual funds. Unlike traditional instruments and savings schemes like a FD, RD, etc. Mutual Funds provide better returns on investment for the level of risk taken. Also, since Mutual Funds are professionally managed by a Fund Manager, it helps in diversifying the risk as well. As there are many options for investments and Mutual Funds schemes, it is always recommended to avail the services of a qualified personal financial planner in helping you take an informed decision in not only selecting the best-suited mutual funds, but also in helping you to invest and, more importantly, in keeping a track of the investment. Remember, the best mutual funds may not be best suited for you. Only a qualified Financial Planners who can assess your exact risk taking ability would be able to give you the best suited Mutual Funds.
3) Pay off her liabilities
It is always a good gift to payoff liabilities. What else can be a better gift than completely or partially paying off her liability? It will lessen her financial burden and make her more financially free. She will remember this gift throughout her life. Even if it is not possible to pay off her liabilities, you could at least ensure that the liability is insured for which you may sponsor the premium.
4) Keep Investing in paper-gold
Though the newer generations are not fond of gold, still the demand of gold has not gone down in India .You can gift your sister by investing in Exchanged traded Gold Fund or Gold Mutual Funds instead of investing in physical gold. Which even minimizes the security risk which is inherent in physical gold.
The best way to make your sister happy is by providing her the Financial Freedom in her life. Guide her to a Certified Financial Planner. Start the Auspicious Rakhi occasion by gifting her a “COMPREHENSIVE PERSONAL FINANCIAL PLAN.” This would pave the way for an auspicious, prosperous and financially independent Future.