Bhai Dooj is a time to celebrate the special bond between siblings. It is a day to express your love and gratitude for your brother or sister. If you are looking for a gift that is both meaningful and practical, consider giving your sibling a financial gift which can help your sibling build their financial future, achieve their financial goals, and develop good financial habits. In this article, check the best financial gifts you can give your sibling this Bhai Dooj and know how to choose the right one.
This is one of the best gifts you can give your siblings. Health insurance can help your sibling cover the costs of unexpected medical expenses. Medical costs can be very high, and health insurance can help your sibling protect their financial future from the burden of medical debt.
There are many different types of health insurance policies available in India. You can choose a policy that is appropriate for your sibling’s needs and budget. Some factors to consider are as follows:
Paper gold is a type of investment that is linked to the price of gold. You can buy paper gold in the form of gold ETFs or gold mutual funds. Gold is a traditional investment that has been used to protect against inflation and economic uncertainty.
Paper gold can be a good option for siblings who want to invest in gold without buying physical gold. It is also more liquid than physical gold, which means that it is easier to sell. Also, there are no making charges added to paper gold as in the case of physical gold. You can also consider Sovereign Gold Bonds (SGBs) issued by the RBI. SGBs generate 2.5% interest per annum.
Mutual funds are a good way to invest in a diversified portfolio of assets, which can help to reduce risk. There are many different types of mutual funds available in India. You can choose a mutual fund that is appropriate for your sibling’s risk tolerance and financial goals. Some factors are:
One key feature of a mutual fund is that you can invest lumpsum or choose the Systematic Investment Plan (SIP) mode. Through SIP mutual funds, your sibling will also learn savings discipline. Or you can make a lump sum investment on behalf of your sibling.
Also, some mutual funds, like ELSS (Equity Linked Savings Scheme) funds, come with a lock-in period and tax benefits. You can pick the one that suits your requirements.
Stocks are a type of investment that represents ownership in a company. When you buy a stock, you become a shareholder of the company and are entitled to a portion of the company’s profits, if any. Stocks can be a good way to invest in the long term, but they are also more volatile than other types of investments, such as bonds.
If you are considering gifting stock to your sibling, it is important to choose a company that is financially sound and has a good track record of growth. You should also consider your sibling’s risk tolerance.
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Savings schemes are a good option for siblings saving for a specific goal, such as a down payment on a house or retirement. They offer a guaranteed return on investment, which makes them a low-risk option.
There are many different types of savings schemes available in India. Some popular savings schemes include:
Financial gifts are a great way to show your sibling how much you care. They are also a practical gift that can help your sibling build their financial future. If you are looking for a meaningful and helpful gift for your sibling this Bhai Dooj, consider giving them a financial gift. Happy investment!
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
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