Rakshabandhan Gift for Your Sister - Connect Her with a Qualified Financial Planner

Rakshabandhan is the celebration of a pure and unbreakable bond between brother and sister. It is about a sister’s love and prayers for her brother and the brother’s promise of protecting his sister always. What can be the best way to show your immense love and commitment other than choosing some unique rakhi gifts for your sister! Although there is a long list of gifts for sisters on Rakshabandhan, picking one of them can be a real challenge. How about taking a step further from those usual Rakshabandhan gifts and giving her something that will serve the true purpose of ‘protecting’ her!

Yes, you can help her achieve some of her financial goals this year and this is definitely the best gift for Rakshabandhan anyone can ever think of. This will help her in the long run to face any uncertainties on the financial front. Now the bigger question comes - ‘how to do it’.

There are a few ways of planning that special gift for your sister, like – you can enhance her financial knowledge, tell her about the best saving accounts or help her invest her hard-earned money in the right way. The best way is to introduce her to mutual fund investments.

What are mutual funds?

A mutual fund is an investment scheme managed by an AMC (Asset Management Company) that pools funds from a number of investors and then puts them in different types of securities like bonds, equity shares etc. Every investor gets a number of units of that mutual fund scheme in proportion to the invested amount and all the profits, losses, income and expenses will be shared in the same proportion.

The investments can be either made in lumpsum or in periodic instalments by taking the Systematic Investment Plan (SIP) route.

Systematic Investment Plans:

Mutual funds SIPs are one of the most common ways to invest in mutual funds. This is similar to a recurring deposit, letting you start a mutual fund investment with a small amount for a preferred duration. This fixed amount gets deducted at the predefined investment schedule and then gets invested in the mutual fund of the investor’s preference.

Why Mutual Funds as a Rakhi Gift?

Mutual fund investment is the best way to get higher returns on one’s investment as they have the potential to grow exponentially. These investments provide the opportunity for long-term wealth creation, making them one of the best and most unique Rakhi gifts for your sister.

There are a few other reasons why you should consider mutual funds as a gifting option:

Compounding Returns

Unlike material gifts, mutual funds are something that offers some great returns in the future. The invested value gets multiplied over time and the amount you are gifting today will be worth much more than that in the coming years.

Easy Liquidity

This is undoubtedly one of the most important benefits of investing in a Mutual Fund. The investments can be redeemed at any point in time and unlike other investment options like FDs, mutual funds have flexible withdrawal. However, factors like the pre-exit penalty and exit load should be considered when liquidating the investment.

Diversification

The market keeps fluctuating and the returns on the investments majorly depend on these fluctuations. By assisting your sister to invest in mutual funds, you can help her diversify her investment portfolio to make it less volatile.

Expert Management

Without in-depth knowledge of the market trends, it gets a little bit risky to invest your money. By choosing a good mutual fund, you reduce the risk involved with the investment. These funds are managed by experts who know the market inside out. They know where to invest the hard-earned money of the investors to make sure they get some decent returns.

Accessibility

Mutual Funds are easily accessible and an individual can start investing from anywhere in the world. Generally, an Asset Management Company (AMC) offers the funds through different channels including brokerage firms, registrars, online investment platforms, agents and banks.

Other than these, there is one major advantage of mutual fund investments, which is that there is a wide range of options. You can choose any of them as per the financial requirements of your sister and help her achieve some of her financial goals. Muthoot Securities can help you to find the best mutual funds investment options that you can consider gifting to your sister this Rakshabandhan. Visit the nearest Muthoot Securities branch to speak to our investment experts.