With Raksha Bandhan around the corner, are you wondering what you should gift your sister this year?
How about a gift of financial advice for her?
Financial freedom is the best gift you can give your sister and/or daughter. And what could be a better day than the ‘Raksha Bandhan’ for the same. Raksha Bandhan is one of the most auspicious festivals that celebrates the loving bond between a brother and sister. On this day, sister ties a Rakhi band to her brother’s wrist wishing him a healthy and prosperous life ahead. The brother in return gives her gifts symbolising protection and love.
With a gift of financial security, she need not worry about money and she will be able to comfortably cover all her needs and more. It will be a step towards her being more self-reliant and financially independent. Financial independence paves the way to live a lifestyle one wishes to, without constraints and financial burdens. Thus a thoughtful gift this year can turn into multiple things for your sister.
A financial gift can enable her to build an emergency fund or setting up a passive income stream or achieve her short-term or long-term financial goals. Here is how you can set her on the path to financial security and help her:
1. To create wealth: Discuss with her the ideas of investing in instruments that has potential to provide long-term capital appreciation.
2. Buy an asset that appreciates: While the popular gifts of consumables, electronics and perfumes lose value over time. Her investments in financial assets has the potential to appreciate over time
3. Save taxes: Proper tax planning will not only reduce her tax liability but also increase her income. By helping her to invest in an Equity Linked Savings Scheme (ELSS). She can avail dual benefit of tax saving and wealth creation. Every year she can invest up to ₹1,50,000 under section 80C and save ₹48000 from tax.
4. Diversify assets: By investing in financial assets she can spread investments across asset classes such as equity, debt, gold, foreign assets etc. With the right diversification her portfolio will remains stable even when one or two asset classes underperform, thereby reducing risk and volatility in the portfolio.
By guiding your sister and/ or daughter on the path to financial security, you can celebrate a meaningful and memorable Raksha Bandhan and gift her a real ‘raksha’ for the good and bad times.
Wish you a Happy Raksha Bandhan
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