Diwali is just around the corner and we can feel the celebratory vibes already. As the festival of lights is approaching, we have had a great epiphany that along with its principal theme, i.e. the victory of good over evil, Diwali also teaches us a lot of other important life lessons ranging from the value of family and togetherness to subtle financial discipline.
Without further ado, let us break down the checklist that will make your Diwali (and investment decisions) financially sound:
1. Start the preparations early:
Diwali is certainly one of the most exciting festivals in India. It is interesting to see how everyone starts preparing for the day well in advance to be able to fully immerse in the joy of this festival. Whether it is applying for a leave, booking tickets, shopping for gifts or making arrangements to renovate homes, everything is carefully planned and executed before the day arrives. Now, this a good analogy for anyone trying to manage their finances better. If you leave everything for the last minute, it could cause a lot of stress. Book a ticket a month in advance and you will get the right price and a guaranteed seat. Try to book the same ticket last minute and you will either miss the chance to go home or get an overpriced ticket. The same is true for investment planning. The earlier you start the better; particularly in terms of getting better returns.
2. Invest time with the zeal to celebrate and grow:
We all do Diwali shopping in a certain way. We look for the products that we want and carefully examine the sale opportunities to be able to get a better deal. We do not hesitate to ask friends and colleagues about the good deals that they might know of. The same ideology can be applied to our investment approach. It is beneficial to get the right equity exposure through well-researched equity mutual funds to satisfy our zeal to grow. Having good guidance in relation to the right investment options and vehicles will improve the likelihood of better returns. This can light up our financial life in the same way that the sacred lamp of Diwali lights up our homes.
3. Invest in gold for luck and diversification:
We celebrate Dhanteras two days before Diwali. It is believed that buying gold on this auspicious occasion can bring you luck and blessings from Goddess Lakshmi. As we know our ancestors started most traditions with a hidden meaning behind it. Buying gold on Dhanteras is an investment in itself as it can be of great value during difficult times. Secondly, when we buy gold-based gifts, we take so many factors into account be it the age, gender, or personality of someone we are gifting it to. The same applies to investment planning. Every investor who has different milestones needs to consider these goals before investing.
If you are someone who is not a great fan of wearing gold jewelry, you can consider investing in gold funds this Dhanteras. This will allow you to participate in the tradition without having to buy physical gold. You can ride out the volatility of the equity market smoothly as gold is a haven during turbulent times.
4. Remember the importance of cleaning homes and your portfolio:
Thoroughly cleaning our homes is an important ritual before Diwali celebrations begin. We dust off our homes and dispose off the goods that we do not use anymore as our elders say Goddess Lakshmi only enters clean and tidy surroundings. We can apply the same ideology to our investment portfolios ; only clean portfolios can attract robust accumulation of returns. It is very important to realize the sanctity of our portfolios as our future depends on the decisions that we make. It is wise to stick to high-quality assets with good corporate governance which are in sync with your goals. Low-quality funds should be disposed of and the good assets should be focused on. Quality becomes critical for fixed income instruments as well.
5. Let celebrations be the only noise in our lives:
We celebrate Diwali by bursting crackers or playing music, and the sound of these celebrations is enough to numb all the negativity in our lives. In the same way, it is important to clear all the unnecessary noise of rumors, misconceptions, myths, and half-knowledge when it comes to investing. It is critical and sacrosanct to maintain investment discipline. So, do not hesitate to seek expert advisory. It is better to ask for help than be overwhelmed and make an impulsive decision.
5nance wishes everyone a very happy, safe and financially sound Diwali. For any queries, get in touch with our financial experts at firstname.lastname@example.org