Raksha Bandhan celebrates the special bond between siblings, marked by love and responsibility. This year, instead of traditional gifts, consider something that empowers your sibling’s financial future. Gifting financial security is a meaningful way to show your love, setting them on a path toward growth and stability.

A solid financial base is crucial for successful investing and informed decisions. It begins with cultivating good savings habits and financial literacy. According to a Finnovate survey, individuals aged 18-30 have the lowest financial fitness scores, primarily due to a lack of planning. Without disciplined saving and awareness, even the best investment strategies can be challenging. This Raksha Bandhan consider gifting financial tools like SIPs, mutual funds, or stocks. By doing so you are not just offering a present but helping your sibling develop lifelong habits for financial security and growth.

Here are the top 5 financial gifts you can consider gifting this Raksha Bandhan.

1. Systematic Investment Plan (SIP) in Mutual Funds

A Systematic Investment Plan (SIP) is an excellent way to introduce your sibling to the world of investments. A SIP allows for a disciplined approach to investing in mutual funds, with regular contributions over time. You can make the initial investment in a mutual fund scheme on behalf of your sibling, and further encourage them to invest. This can be done either through a lump sum investment via a systematic transfer plan (STP) or by opting for a systematic investment plan (SIP).

Through this approach, you’re helping them build wealth gradually, taking advantage of the power of compounding. One of the most significant advantages of a SIP is its flexibility—you can start with a small amount, making it accessible even if you have a limited budget.

A SIP also teaches the importance of regular savings and long-term financial planning. As your sibling sees their investments grow over time, they’ll gain a deeper understanding of the benefits of staying committed to their financial goals. It’s not just a gift; it’s a lesson in financial discipline that will benefit them for years to come.

Also Read: From NPS to PPF, best investment options for salaried persons in India

2. Health Insurance

Gifting health insurance to your sibling is one of the most thoughtful and practical ways to show you care about their well-being. Health insurance provides a safety net against unforeseen medical expenses, ensuring that your sibling has access to quality healthcare without the burden of financial strain. In today’s world, where healthcare costs are rising, having a comprehensive health insurance policy is essential.

By gifting health insurance, you’re not just offering financial protection, but also peace of mind, knowing that your sibling is covered in case of medical emergencies. It’s a gift that goes beyond the present moment, offering long-term security and support. Moreover, it encourages your sibling to prioritize their health and well-being, fostering a sense of responsibility toward maintaining a healthy lifestyle.

3. Fixed Deposit

Gifting a fixed deposit (FD) to your sibling this Raksha Bandhan by making one in their name is a thoughtful way to ensure their financial security while providing them with a reliable source of returns. A fixed deposit is a savings instrument offered by banks and financial institutions, where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. The interest earned on the FD is typically higher than that of a regular savings account, making it a popular and safe investment option.

By doing this, you’re helping them build a secure financial foundation with guaranteed returns. The amount invested will grow steadily over time, and your sibling can choose to withdraw it upon maturity or reinvest it for further growth. This gift not only offers financial stability but also teaches the importance of disciplined savings. It’s a simple yet effective way to contribute to your sibling’s financial well-being and future planning.

4. Paper Gold

Gifting paper gold to your sibling is a modern and practical way to invest in gold without the hassle of handling physical gold. Paper gold refers to investment instruments like Sovereign Gold Bonds (SGBs) or gold Exchange-Traded Funds (ETFs), which represent the value of gold without the need to store physical bars or coins. These financial products offer the same benefits as owning physical gold, such as capital appreciation and acting as a hedge against inflation, but with added advantages like safety and convenience.

Unlike physical gold, paper gold is free from concerns about theft, purity, or storage costs. Sovereign Gold Bonds, for instance, are backed by the government and even offer periodic interest payments, making them a secure and lucrative option. By gifting paper gold, you’re not only giving a valuable asset but also providing a smart, hassle-free investment that can grow over time.

5. Stock Market Investment

For the sibling who enjoys a bit of adventure and is interested in the stock market, gifting shares in a reputable company can be a thrilling and potentially lucrative choice. Investing in the stock market can yield high returns, especially when done with proper research and guidance. If your sibling is new to stock market investing, consider pairing this gift with some educational resources, like Fin One which is a financial awareness platform by Angel One.

Stock market investments can be a powerful way to build wealth over the long term, and by introducing your sibling to this world, you’re giving them the opportunity to learn about market dynamics, analyze companies, and make informed decisions. It’s a gift that comes with a learning curve, but with the right approach, it can be incredibly rewarding.

This Raksha Bandhan, think beyond traditional gifts and give your sibling something that truly matters—financial empowerment. Each of these financial gifts offers more than just monetary value; they provide security, and a pathway to financial independence. By gifting any of these options, you’re not just celebrating your bond—you’re also investing in their future, making this Raksha Bandhan truly memorable.

(By Paarth Dhar, VP, Angel One, who is leading Fin One, a financial awareness platform)

Disclaimer: Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Readers are advised to consult qualified financial advisors before making any investment decision. Reproducing this content without permission is prohibited.