Raksha Bandhan is a beloved Indian festival where sisters tie ‘Rakhis’ around their brothers’ wrists, symbolising protection. In return, brothers offer gifts to show their love and care.

While traditional gifts like cash, jewellery, smartphones, and clothes are popular, this year, why not consider a gift that ensures your sister’s financial security? A financial gift can provide lasting benefits, helping her secure her future.

One of the most thoughtful ways to support your sister is by introducing her to basic investment options. This could include stocks, bonds, mutual funds, and Exchange Traded Funds (ETFs).

These options offer the potential for long-term growth, allowing her to build wealth over time. You could help her open a retirement account, such as a 401(k) or an IRA, and explain the advantages of tax-advantaged savings. It’s essential to start early, and the power of compounding can significantly boost her savings.

Additionally, guiding her on risk management and periodic portfolio rebalancing could make a substantial difference in her financial journey.

Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, said, “This Raksha Bandhan, consider gifting your sister financial knowledge and skills. Instead of traditional presents, help her become familiar with personal finance, including SIPs (Systematic Investment Plans), stocks, and diversified investment portfolios. SIPs are a disciplined way to create wealth by investing small amounts each month, letting them grow into a significant corpus over time.”

“Show her the potential of the stock market for long-term gains, but also emphasise the importance of research and risk management. You might even gift her shares of a company she likes or set up a SIP for a promising mutual fund. The most valuable financial gift isn’t just money; it’s the ability to grow and manage it wisely. By empowering your sister with financial knowledge, you’re helping her secure her future, which is the true essence of Raksha Bandhan,” he added.

Here are some thoughtful financial gift ideas for your sister this Raksha Bandhan:

Cash: A classic and versatile gift, cash allows your sister to spend it as she wishes, catering to her immediate needs or desires.

Investment Fund: Contributing to a mutual fund or savings account in her name can help her achieve long-term financial goals.

Stocks: Gifting stocks can be a forward-looking present, offering both financial potential and long-term value. This gift could introduce her to the stock market and the concept of wealth creation through investments.

Systematic Investment Plans (SIPs): SIPs are an excellent way to start investing in mutual funds. They offer a disciplined approach to investing, making them an ideal gift for long-term financial growth.

Gold/Silver Coins: Precious metal coins are a practical and valuable gift that can serve as a hedge against inflation and a long-term investment.

Fixed Deposits (FDs): FDs are a secure gift choice, offering guaranteed returns on investment. This gift provides your sister with a stable and secure investment option, contributing to her financial security.

Lump Sum Mutual Fund Investment: This allows her to benefit from professional management and diversification, potentially enhancing her wealth over time.

Gift Card: A gift card to her favourite store or online retailer gives her the freedom to choose what she wants.

Anurag Goel, Director at Goel Ganga Developments, said, “Raksha Bandhan is about protection. What better way to protect your sister’s future than by introducing her to real estate investing? Real estate has been a stable avenue for wealth creation, offering a rare combination of stability and potential for growth. By guiding your sister to invest in property, you pass on an asset that appreciates over time, provides rental income, and serves as a safe haven during uncertain economic times. Educate her on market trends, the value of location, and the power of compounding in real estate. This Raksha Bandhan, consider gifting your sister the knowledge and tools to secure her financial future through real estate—a gift that truly upholds the essence of the festival.”