Here are a few alternative options you can indulge in this year to really protect your loved ones’ future.
Mumbai: This Rakshabandhan, you can celebrate the bond of undying love with your brothers and sister in ways that secures their future financially and practically.
Rakshabandhan is marked by exchange of gifts, as a mark of the love and affection siblings share. Instead of cash, fancy clothes, accessories, food, etc, that are conventionally gifted, financial instruments are more pragmatic in the long run.
Here are a few alternative options you can indulge in this year to really protect your loved ones’ future:
1. Systematic investment plan: SIPs allows one to invest in a mutual fund by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment. Since markets are at an all time high, this is a good time to invest in an SIP.
2. Fixed deposit: If you are not the risk-taker, then fixing a good amount in the bank is a good way to ensure your sibling has a lump sum capital to fall back on in the future.
3. Gold: Gold has always been considered one of the most secure forms of investment, even traditionally. It is of real help during times of economic crisis.
4. Gold ETFs/ bonds: If you want to avoid the risk of safekeeping of gold or purity, gold ETFs are a good option. These are open-ended mutual fund schemes that put the investor’s money into buying standard gold bullion. The gold is stored digitally in a demat account. There is no risk of theft or purity, or charges on making. The returns are linked to prices of gold. Gold ETFs start as low as Rs 500.
Sovereign Gold Bonds or SGBs is another alternative. These are government securities denominated in grams of gold. Investors will have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. SGBs can be used as collateral for loans. It can also be sold or traded on stock exchanges.
5. Insurance: Insurance is one of the most full-proof ways of securing your sibling’s future. Health insurance, especially comes in handy in this age of rising medical expenditure.
If your young sibling has a bike or car, you may also get an insurance for their vehicles.