let’s look at some investment options you can help your sister with this Raksha Bandhan, which she will treasure for the rest of her life. While some might not consider a financial scheme much fun as compared to a regular one, it certainly will last longer than a box of chocolates
Fixed deposit in a bank
An FD in your sister’s name in her bank account for a specified period will take care of her liquidity and at the same time generate decent guaranteed returns. Short-term debt funds and FMPs can also be considered.
Gift card
Most banks nowadays issue prepaid cards. These cards are usually Visa or Mastercard affiliated and you can use them to shop at any outlet that accepts them. While a this card is more personal than cash, it will also allow her the freedom to choose her own gift. Shop, dine, party—she can use the card just the way she wants. Also, most cards have an ATM PIN that will allow her to withdraw cash if she wants to.
Gold funds/Gold ETF
This is one gift which will keep glittering over time. The gold-saving funds can be a great investment option especially since one can invest in this fund without a demat account and can set up an SIP for the same. The alternate option of Gold ETFs doesn’t allow investments.
You can look at setting up an SIP for your sister this Raksha Bandhan to begin her allocation in gold. In addition, storage is not a problem with Gold ETFs.
Apart from this you can buy a gold coin, which is available in 0.5 g, 1 g, 2.5 g, 5 g, 8 g, 20 g and 50 g categories. These make better investment sense than jewellery, simply because when you sell them, you get the full value, unlike in jewellery where you lose out at least 25 per cent in melting and make charges.
Investment in Public Provident Fund
Gifting money as part of her yearly investment in Public Provident Fund (PPF) can be opted for too. Assured and tax-free returns have made PPF a preferred choice for risk-averse investors for years. It is an excellent tool for long-term investment and is risk-free since the government backs it.
Personal finance books
Along with the above financial gifts, a personal finance book which underlies simple investment principles can be thought of. It will make sure your sister acknowledges the importance of saving and most importantly investing surplus corpus to achieve her short and long-term goals.
Medical insurance in her name
Another unique thing would be buying a medical insurance policy in her name or renewing it for her. Due to change in lifestyle and stress, a lack of physical exercise may cause a critical illness. Covering your sister with medical insurance would help her during a difficult time.