This Rakha Bandhan, gift your sister financial security: here are some tips

Here are some of the financial products a brother can gift to his sister on the occasion of Raksha Bandhan

What's the best gift that a brother can give his sister on Raksha Bandhan? In our view, it's financial freedom. To help you decide, Business Standard has narrowed down a few financial products that you can give your sister this year:

1. Health insurance plan
   You can buy your sister a health insurance plan that will ensure financial safety in times of medical emergencies. A decent health insurance plan would cover the cost of hospitalisation, daycare procedures, room rent and domiciliary expenses. It would facilitate a cashless hospitalisation facility.
    
2. Digital gold or Gold ETF
   Add bling to her life by purchasing digital gold. In India, three main companies offer digital gold: MMTC-PAMP India, Augmont Gold Ltd and Digital Gold India.
   
   Alternatively, you can also purchase Gold ETFs, which are passive investment instruments based on gold prices and invest in gold bullion.
    
3. Mutual fund
   You can pick a mutual fund for your sister that has been performing well in the last couple of years and invest in it for her. An investor can invest in thousands of mutual fund schemes in India. Take your financial planner's advice before deciding on the best mutual fund to invest in.
    
4. Stocks
   You can gift stocks with long-term investment in focus. However, we suggest you discuss this with your financial planner if you are uncertain.
    
5. Fixed Deposit or Recurring Deposit
   Finally, you can also give the traditional financial products: Fixed Deposit or Recurring Deposit. Brothers can fix the amount they plan to give their sister or open a recurring deposit account and make small payments every month for a certain period. A fixed deposit account earns a higher interest rate than a savings account.