Shopping or Investing: What Should You Choose this Diwali?

14 November 2023
6 min read
Shopping or Investing: What Should You Choose this Diwali?
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The season of festivals is currently in full swing! This implies shopping, eating, and lavish spending, isn't that right? People are busy preparing for Diwali, which is just around the corner.

Diwali is a festival of light, hope, and prosperity, but most of us end up spending our money on Diwali on unnecessary things because we lack a clear plan for how it should be invested. This Diwali, you have a variety of options for investments!

In this blog, we will walk you through every aspect of investments you can make in Diwali and why you should consider investing your money in financial products over shopping this Diwali.

What Justifies Investing in Financial Products This Diwali?

Although purchasing gold jewelry is always a good idea, investing your money in financial securities will allow you to make much more money over the long term. One of the most thrilling holidays of the year is Diwali.

Most businesses wait until this time of year to introduce new products or share the good news that will significantly boost the investment's value in the future. Therefore, there is a greater chance of profit in just one month if you invest money now.

There is nothing wrong with spending cash on Diwali festivities, but why not use that cash to your advantage?

The best part is that you will not need to raid your savings every time you make a Diwali plan!

In light of this, we thought offering some fantastic investment ideas for this festive season would be appropriate.

Investment Ideas for Diwali

Here are the top five investments to consider this festive season-

  • Mutual Funds

The choice of Mutual Funds as an investment has grown in popularity in India. People start looking to start new ventures, businesses, or investments in mutual funds or stocks as the Diwali festival approaches.

You need to make a few key considerations if you are thinking about starting your mutual fund investing journey on the auspicious occasion of Diwali. First, mutual Funds have proven to have a strong capacity for wealth creation.

Modern retail investors can make their hard-earned money work harder for them without depending on stocks and tips. Since earning 15% returns yearly by investing in funds is simple, investors can double their money with mutual funds in 5 years.

  • Stocks

The term "Stock Market" refers to the public markets that are available for issuing, purchasing, and selling stocks that trade over the counter or on a stock exchange.

Every year, on the day of the Diwali festival, investors all over the nation invest in stock exchanges. Even those who haven't traded in a while are making a point of doing so.

The stock market is a marketplace where investors can buy and sell ownership of such investible assets. Stocks also called equity,s represent a portion of ownership in a company.

  • Savings Account

Placing money in a savings account is a tried-and-true way to invest for Diwali. Therefore, you should keep your extra cash in a Savings Account where it is safe to keep it out of unnecessary spending.

Additionally, you can maximize the available interest rates and generate extra income.

Since you can take advantage of numerous deals and offers on the associated terms during the holiday season, opening and investing in a savings account is a great idea.

  • Gold

Gold is another investment choice that is ideal for Diwali. Gold is a reliable investment, whether you buy it for jewelry or ceremonial purposes.

While the shiny metal undoubtedly makes the festivities sparkle, it is also a valuable addition to your portfolio. If its value rises, you can sell it off, or if you ever require financial aid, you can put it up as collateral. You can wear it as jewelry in the interim or present it as a family heirloom to close friends and family.

You can buy gold with your Diwali money and manage your money as a result.

  • Emergency Fund

Money management is another benefit of investing. It also entails setting money aside for when you will need it most. You must, therefore, put money into an Emergency Fund.

The ideal situation would be to invest a portion of your monthly income into this fund. You could, however, start by setting aside some of your Diwali funds. Make sure not to spend this money on unnecessary expenses.

So, if you ever find yourself financially bound, you can quickly and worry-free dip into this stash. Take advantage of this Diwali to choose financial security to handle unforeseen circumstances.

  1. Public Provident Fund

You can invest in the PPF this Diwali if you have a lower risk tolerance and prefer safer investment vehicles. Moreover, small savings plans like PPF are tax-free.

With a PPF account, you can invest money and receive compounded returns at any post office or registered bank.

  • IPOs

Initial Public Offerings, or IPOs, are another fantastic place to start with your financial investments this Diwali. To list their shares on the stock market, numerous well-known businesses are developing their initial public offerings (IPOs).

Before applying to an IPO, you must carefully research the company you wish to invest in.

  • Corporate Bonds

Corporate Bonds are a good option for risk-averse investors who prefer fixed return options and healthy returns in a setting where fixed deposit rates are rapidly declining for Diwali investments.

Both private and public companies issue these bonds. Investors should only choose reputable companies with a solid track record of meeting financial obligations and a high credit rating.

Listing all bonds on stock exchanges is not the norm; however, some may be.

  • Real Estate

During the holiday season, many real estate developers give prospective buyers of properties steep discounts. So this time, you might want to consider purchasing real estate to save money.

In addition to receiving offers from real estate developers, obtaining bank loans entitles you to discounts and other advantages. Real estate is a reliable asset you can always rely on during bad times, whether for your use or as an investment.

Real estate provides both price appreciation and rental income. Therefore, when many potential buyers buy their dream homes, Dhanteras and Diwali are ideal times.

  • Fixed Deposits

There are fixed deposits available if you want the guarantee of safe returns. Large banks are currently providing interest rates on certain tenures over 6% to 6.5%.

Several small banks are providing deposits at 7% to 7.75%. For higher returns, corporate fixed deposits may also be taken into account.

Conclusion

There are numerous ways to enhance your financial planning. Although good enough is not perfect in a dynamic world like ours, you can now be confident that you can improve in a few economic areas thanks to the positive reinforcement of any modest actions you might take this Diwali.

While you might wait until Diwali to make purchases for your use, successful investors hold off until they want to increase their wealth.

We wish you all continued wealth and prosperity as you celebrate the festival of light. Therefore, we hope you make good use of your Diwali bonus. Something that will be useful to you in the future.

Happy Diwali & Happy Investing, Folks!

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Himanshu Sinha

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