Raksha Bandhan: How Can Brothers Gift SIPs to Sisters?

A SIP can be a thoughtful financial gift for Raksha Bandhan because it encourages disciplined investing instead of one-time spending. Brothers who want to give their sisters something meaningful for this special occasion can help them start a mutual fund SIP through HDFC SKY (or support an existing one). 

A systematic investment plan (SIP) is not something a brother can simply transfer into his sister’s name. The practical approach is to gift her the money and let her start the SIP herself. This keeps the investment in her ownership and future installments linked to her bank account. 

Key Highlights 

• A brother can gift money to his sister specifically to help her begin or maintain an SIP. 

• The sister should invest through her own investment account and registered bank account. 

• HDFC SKY allows investors to discover mutual funds, select SIPs, set the investment schedule, and track holdings digitally. 

• Returns earned from the mutual fund remain subject to applicable taxation. 

How to Start the SIP Through HDFC SKY 

Step 1: Decide the Gift Amount 

The brother should start with an amount that fits comfortably within his budget. 

For example: 

₹12,000 can support a ₹1,000 monthly SIP for 12 months, while ₹24,000 can support ₹2,000 per month for the same period. 

Step 2: Transfer the Gift to the Sister 

Transfer the chosen amount to the sister’s bank account. The brother does not need to make every SIP payment himself. 

Step 3: Log In to HDFC SKY 

The sister can open or log in to her HDFC SKY account and complete the applicable KYC requirements if these have not already been completed. 

She can then navigate to the Mutual Funds section. 

Step 4: Explore and Select a Mutual Fund 

Instead of choosing a scheme solely because it recently delivered high returns, she should consider: 

• Her financial goal 

• Her investment horizon 

• Her risk appetite 

• The fund category 

• The expense and other scheme details 

HDFC SKY allows investors to review pertinent mutual fund information before placing an investment. 

Step 5: Review the SIP 

Check the selected scheme, SIP amount, investment schedule, and other order details carefully before confirming. 

Step 6: Set Up AutoPay 

For recurring SIPs on HDFC SKY, set up an AutoPay mandate through Net Banking after placing the first SIP order. 

What About Tax on the Gift? 

Money gifted between a brother and sister falls under the relative exemption under Section 56(2)(x) of the Income-tax Act, so the gift itself is generally not taxable simply because of its value.  

But remember, future gains from investments made by the sister will, however, be subject to applicable investment taxation. 

FAQs 

Why is an SIP a great Rakhi gift from a brother to a sister? 

An SIP makes a thoughtful Rakhi gift because it helps the sister build long‑term wealth and shows that the brother cares about her financial independence and future security. Instead of a temporary gift, an SIP creates a growing financial asset for the sister. 

What if the sister does not already have an HDFC SKY account? 

She can open an account and complete the required KYC process before starting the investment. 

Does the entire gifted amount have to be invested immediately? 

No. She may keep sufficient money in her bank account and invest it gradually through SIP installments. 

Can the sister stop or modify the SIP later? 

Yes, she can do so subject to the applicable mutual fund and platform process.