From Diyas to Dividends: A Festive Guide to Investing in Mutual Funds This Diwali
Diwali is the festival of lights. What better day to make financial plans and investments.
image for illustrative purpose
Diwali, the festival of lights, is a time of new beginnings and prosperity—a perfect occasion to plan and secure your financial future. Whether you’re starting fresh with investments in Samvat 2081 or are an experienced investor, following key principles can help you achieve financial success.
Opportunities Await Historically, the stock market has rewarded patience. A look at the last four years shows that those who invested and waited saw positive returns. This Diwali, as you light diyas, consider lighting up your financial future as well. Start a Systematic Investment Plan (SIP), even with a modest amount. The longer you wait, the more opportunities might pass by.
Keep Emotions in Check Festivals bring joy, and investments should be approached with the same positive mindset. Avoid making impulsive decisions, yet don’t overlook your investments either. Begin investing with enthusiasm, but remember to stay committed over the long term, rather than stopping once the festive season passes.
Diversify Wisely Just as we select a variety of firecrackers, investments should also be diversified. Avoid putting all your money into a single stock or one sector. Instead, balance your portfolio with a mix of stocks, mutual funds, gold, real estate, and bonds to safeguard against market fluctuations.
Budget for Investments Household expenses like rent, utilities, travel, and education are inevitable, but it’s crucial to treat investments as a priority expense as well. Aim to allocate at least 10-15% of your income towards investments. To keep your financial health in check, try to ensure your monthly EMIs don’t exceed 30% of your total income.
Protect Your Future We take safety measures while celebrating Diwali, and the same caution should be applied to financial planning. Secure yourself and your loved ones with appropriate life and health insurance coverage based on each individual’s needs and income.
This Diwali, let your financial planning be as bright and steady as the festival’s lights.
