Now Reading: Gold, FD or mutual fund: what to gift this Raksha Bandhan
-
01
Gold, FD or mutual fund: what to gift this Raksha Bandhan
Raksha Bandhan gifts need not be clothes or cash: a financial investment can support a sister's long-term needs. The right choice depends on her age and goals. For sisters aged 10-15, equity…
Raksha Bandhan gifts need not be clothes or cash: a financial investment can support a sister's long-term needs. The right choice depends on her age and goals. For sisters aged 10-15, equity mutual funds suit long-term targets such as higher education, with a ₹5,000 monthly SIP building wealth over time. For ages 15-18, splitting between equity or hybrid funds and fixed deposits or gold ETFs reduces risk if money is needed within a few years. A married sister aged 25-30 may prioritise children's education and household needs, allocating 10-15% to gold and using FDs or debt funds for emergencies.
Diversification across equity, gold and safer instruments is key, with the mix reflecting her goals, time horizon and risk tolerance. Periodic reviews keep the portfolio aligned. The festival falls on 19 August.
Indian Opinion Analysis
Raksha Bandhan gifting often leans towards jewellery or cash, but financial planners say the shift to investment gifts mirrors a broader trend of millennials and Gen Z seeking long-term value over immediate consumption. The choice between gold, FDs and mutual funds largely turns on a single variable: how far away the intended goal is. Equities have historically delivered higher returns over 10-plus-year periods but can lose value in the short term, which is why pure equity SIPs are unsuitable for a sister who needs money within three to five years. Gold ETFs, unlike physical jewellery, avoid making charges and purity concerns, but gold itself has underperformed equities over most 15-year windows. FDs offer certainty but post-tax returns are negative in real terms when inflation is above 5%.
Source: freepressjournal.in
This brief was synthesised by AI from the source linked above.
