Raksha Bandhan is traditionally associated with gifts, sweets and celebrations, but the occasion can also be an opportunity to give a sister a gift that continues to grow long after the festival is over. Instead of giving cash or a conventional gift, one could consider starting a mutual fund SIP for their sibling, particularly if the sibling is a first-time investor.
A SIP not only puts money to work over the long term but can also encourage the habit of regular investing and allow compounding to work over several years. However, the choice of fund, investment horizon and tax implications need to be considered before making such a gift.
