A lot of us are celebrating Raksha Bandhan digitally this year because of the coronavirus pandemic. Thus, giving the usual gifts of sweets and chocolates will not be possible this year.
How does the idea of a digital gift sound? A gift that will not only make your sister super happy but also help her become so much more independent and able to achieve her goals?
Sisters are always special, no matter whether they are young or old. And most brothers love to pamper their sisters with gifts, be it clothes or sweets, or any day.
And Raksha Bandhan is the most auspicious occasion for sisters and brothers. It signifies the special bond that the siblings share, and also their commitment to one another.
But do these gifts share the true purpose of protecting one another in times like this?
In this world full of uncertainties, no one wants to depend so much on another, even if it is parents of siblings. And sisters should also be able to protect themselves.
A great gift for your sister to be a gift that helps her to become financially free.
Brothers can start a SIP in their quest to help their sisters become financially independent. In fact, in the long run, a SIP can even ensure that your sister even becomes financially free in her retirement years.
SIPs are offered by mutual funds to help investors to invest a predefined amount of money in these funds in a disciplined manner over a certain period.
Here are the benefits of investing in mutual funds via the SIP route:
Higher cost efficiency:
With SIPs, you can invest amounts as low as INR 100, to begin with. Thus, an SIP is super light on the wallet. For those who fund it tough to invest big amounts of money at once, an SIP is the best way out.
Ease of operations:
A click of the button on your laptop and tap on your mobile phone; and your SIP can be done. All that you need for your SIP is a PAN card, a mutual fund KYC, and money in your account. With just the click of a button, you can even increase, decrease, pause, and stop your SIPs.
Helps to avoid volatility
The equity market is very volatile. And it is crucial to mitigate this volatility. The best way to mitigate volatility is to time the market well; but for those of us who cannot the market trends, things can go wrong. The most convenient way to do that is to spread out the investments via SIP in a disciplined manner at all points. This process will average out all low and high points, and also bring down the average cost of the units in the long run. Net gains are proof of how volatility can be managed in the long run.
Compounding and its power is truly the eighth wonder of the world. When companies and economies grow at multiplying rates, the investments made in them grow too. If held over long periods, investments made in SIPs, whether during lows or high, can multiply at expansion rates.
Thus, starting a new SIP in equity mutual funds for your sister, or adding more money to it would be a thoughtful gift indeed. Material gifts will soon fade away, but a SIP would compound greatly to help her achieve her goals and dreams throughout life. And this would give her wings to become financially free and stable as soon as possible.
One has to understand the importance of investing inequities in the long term. The earlier you start, the better it is. However, it is important to make sure that you get your sister in contact with a good financial investor or distributor, who can help her to choose the right mutual funds for herself.
In this way, you will earn not just her blessings; but also fulfill your duties as a brother in the real sense!