Bhai Dooj 2026: Instead of cash or chocolates, give your sister this one gift—it will grow into 11 lakh rupees..

This year, the festival of Bhai Dooj will be celebrated on November 11, 2026. If you wish to give your sister something different—beyond the usual cash, chocolates, or shopping vouchers—you could consider starting a mutual fund SIP in her name. For instance, you might choose to invest ₹2,000, ₹3,000, or ₹5,000 every month for her. Such a gift could help her cultivate the habit of saving and investing for the future.

However, there are certain important rules to keep in mind before starting an SIP. Generally, mutual funds do not allow investments to be funded from someone else’s bank account; therefore, you cannot set up an SIP in your sister’s name using your own bank details. That said, there is a simple workaround: you can gift the money to your sister, and she can then initiate the SIP in her own name using her own bank account.

What is the correct way to start an SIP for your sister?

If your sister is an adult, the mutual fund investment must be in her name, and the SIP installments should be debited from her own bank account. To facilitate this, you can transfer the funds to her. For example, if you want to set up a monthly SIP of ₹5,000, you could transfer ₹5,000 to her account each month. Alternatively, you could gift her ₹60,000 as a lump sum, allowing her to set up a monthly SIP of ₹5,000 from her own bank account.

Similarly, if you wish to set up a monthly SIP of ₹2,000 for your sister, you can transfer ₹2,000 to her bank account every month. Another option is to gift her ₹24,000 at once, which would enable her to fund a monthly SIP of ₹2,000 from her own account. Similarly, for a monthly SIP of ₹3,000, you can either contribute ₹3,000 every month or provide a lump sum of ₹36,000. Likewise, for a ₹5,000 SIP, you have the option to transfer ₹5,000 monthly or gift a lump sum of ₹60,000. Your sister can then initiate an SIP in a mutual fund of her choice using her own bank account. The investment will be in her name, and she will be the owner of the units.

Monthly SIP    Total Investment (10 years)    Estimated Returns    Total Value

₹2,000                          ₹2,40,000                        ₹2,08,072                    ₹4,48,072
₹3,000                          ₹3,60,000                        ₹3,12,108                    ₹6,72,108
₹5,000                              ₹6,00,000                    ₹5,20,180                      ₹11,20,180

Please note that the mutual fund folio will be in your sister's name, and she will be the owner of the investment units. She will need to complete the necessary KYC process for this. If she does not already have a mutual fund folio, a new one can be created at the time of the initial investment.

Does the sister have to pay tax on money received from her brother?

No. Under income tax laws, a brother and sister fall into the category of 'relatives' of each other. Therefore, money received by a sister from her brother as a gift is not subject to tax. This exemption is not dependent on the amount; whether you contribute ₹5,000 every month or transfer a lump sum of ₹60,000, your sister will not be required to pay tax on this amount.
However, when your sister sells the mutual fund units and withdraws the money, any profit—referred to as 'capital gains'—may be subject to tax in accordance with the applicable rules. Since the investment is in the sister's name, any tax liability will also be attributed to her account.

Is a gift deed required for gifting money?
It is not mandatory to execute a gift deed for transferring money from a brother to a sister; you can transfer the funds directly to her bank account. However, if you are gifting a large sum, it may be advisable to prepare a simple gift letter or deed. This document can state that the amount is being given to the sister as a gift, without any conditions. The record of the bank transfer and this document can be useful should any questions arise regarding the transaction in the future.

What if the sister is a minor?

If the sister is under 18 years of age, different investment rules apply. A mutual fund folio is opened in the minor's name, while it is operated by a parent or a court-appointed legal guardian. Under AMFI (Association of Mutual Funds in India) guidelines, parents, grandparents, or other relevant individuals can provide funds as a gift on behalf of a minor. Generally, this is subject to a limit of ₹50,000 per regular purchase or per installment of a Systematic Investment Plan (SIP). However, this requires the submission of necessary KYC documents and documentation related to third-party payments. This limit does not apply to payments made by the guardian registered in the folio.

Income generated from a minor's investments may, as per applicable regulations, be clubbed with the income of one of the parents. Therefore, it is advisable to understand the specific rules from the mutual fund company or a tax expert before initiating the investment.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.