We are in the midst of the festival season!

Which means, shopping, food and well, spending lavishly, right?

Diwali is just around the corner and people are busy preparing for the festival of light, hope and prosperity.

As an Indian, I spend a fortune on celebrations, whether it is to buy fancy gifts, gold coins or jewellery for the future. But when I look at it from a practical perspective, unplanned spending may take a toll on my financial health.

Most Hindus pray to goddess Laxmi to bring wealth every Diwali, the answer to my prayers has always been in front of me, and I didn’t even realize it.

I just had to add a few financial products like IPO, mutual funds, equities,etc. to my Diwali shopping list and I am all set.

So, if you haven’t started investing yet, there is no better day than Diwali to begin your investment journey.

Extravaganza of Diwali

Diwali is the festival of joy, traditions and new beginnings. New clothes, jewellery, delicacies; this festival has it all!

And like every year, celebrations are marked by stunning fireworks, fanfare, and fervor with friends and family.

The ebullience on the streets, particularly in India, is so dazzling with oil lamps, lanterns, rangoli, fireworks, and shopping that it just can’t go unnoticed.

Gifts and sweets are exchanged between family and friends during this five-day festival, and the mood is totally enthralling!

The concept of investing in Diwali

Firstly, let’s have a look at how much people spend during Diwali.

Now, think for yourself. Even if you spend half this amount in investing, how much can you gain in a few year’s time!

Mythological stories about Diwali vary regionally and between traditional cultures.

Through this article, I want to shed some light on how you can brighten your financial future.

This Diwali, while you can continue to celebrate the festival practicing all the traditions, take a pledge to illuminate your financial well-being and safeguard your future financially.

Invest wisely so your dreams/financial goals can come true. Use every penny productively.

Why should you invest in financial products this Diwali?

While buying gold jewelry is always a good thing, you can earn much more in the long run if you choose to invest your money in financial securities.

Diwali is one of the most exciting times of the whole year.

Most companies wait for this season to launch new products or announce a positive news about the company’s business which can increase the value of investment by a hefty margin in the future.

If you choose to invest money during this season, there is a higher possibility of you earning huge profit in just a month’s time.

There is nothing wrong with spending money on Diwali celebrations, but why not spend it in a way that can earn you huge profit?

The best part is, you don’t have to dig into your savings every time you make a plan for Diwali!

Keeping this in mind, I thought it is apt to suggest the great investment options for this festive season.

Mutual Funds – Best investment option this Diwali

How about starting an investment to make you rich this Diwali?

The plan is very simple. You can start investing a small amount every month in an equity mutual fund scheme from next month. And you can retire to the hills after fifteen years.

Good plan?

Mutual funds have demonstrated a strong capability of generating wealth.

Retail investors these days do not need to rely on stocks and tips to see their hard-earned money work harder for them.

With mutual funds, investors can double their money in 5 years since it is easy to get 15% returns annually by investing in funds.

And what better time than Diwali?

Why should you invest in Mutual Funds?

Here are the major advantages of investing in mutual funds.

1. Risk diversification

The biggest advantage of investing in mutual funds versus stocks is risk diversification.

Mutual funds help investors diversify unsystematic risks by investing in a diversified portfolio of stocks across different sectors and different investment instruments.

2. Smaller capital outlay

Investors require a large capital outlay to build a diversified portfolio of stocks.

On the other hand, since mutual funds work on the basis of pooling in money, mutual fund investors can have the ownership of a diversified portfolio of stocks with a much smaller capital outlay.

Investors can buy units of a diversified equity fund with an investment as low as Rs. 5,000 only (or even lower for some schemes).

3. Investment expertise

A lot of people follow stock markets and wish to invest in shares offered by various companies, but they fear that they don’t have enough knowledge or don’t have sufficient time to keep track and follow the latest buzz about the market, which could lead them to take wrong decisions.

Mutual fund is the perfect solution for them, as investing directly in the equity market is risky.

4. Variety of products

Mutual funds offer investors a variety of products to suit their risk profiles and investment objectives.

Apart from equity funds, there are also balanced funds, monthly income plans, income funds and liquid funds to suit different investment requirements.

5. Variety of modes of investments

Mutual funds also offer investors flexibility in terms of modes of investment and withdrawal.

Investors can opt for different investment modes like lump sum (or one time), systematic investment plans, systematic transfer plans (from other mutual fund schemes), systematic withdrawal plans, switches from one scheme to another etc.

You can invest in the dividend option, if you want regular income from your investment.

No other investment product offers such wide array of investment modes.

6. Disciplined investing

Systematic investment plans (SIPs) in mutual funds help investors to maintain a disciplined approach to saving and investment.

Many investors fail to build a substantial investment corpus because they are not able to invest in a disciplined way.

Frequent trading often leads the investor to incur losses. Mutual funds encourage investors to invest over a long time horizon, which is essential to creating wealth.

By investing through SIPs in a mechanical way, investors can stay disciplined, which is critical to achieving their financial objectives.

Start investing now

There is an old proverb saying:

Groww - quotes

Groww – quotes

This nugget of wisdom is very applicable to the world of investment.

By planting the seeds of investments early, you can see your wealth grow right in front of your eyes.

And when the time comes, you can enjoy the fruits of your returns.

Many people think they need a large corpus of money to start investing, which is why it is one of the biggest reasons they postpone their investments.

This is not the right strategy for investing your money. No investment is small.

Many mutual fund houses allow you to start your investment journey with as little as ₹100, ₹500, ₹1,000 per month.

In fact, the right strategy is to begin investing right away, regardless of how much money you save.

These small investments balloon into a large corpus over time due to compounding. In investments, compounding is the process where the returns you earn, in turn, earn returns for you.


There are many things that I’m working on to improve my financial planning.

In a dynamic world, such as our’s, good enough isn’t perfect.

But now, I am confident that I can improve upon a few financial areas, from the positive reinforcement of the small actions I’ve already taken.

You may wait for Diwali to buy things for personal use, but successful investors wait to buy investments to build their personal wealth.

I hope the festival of light brings with it more wealth and prosperity, to each and every one of you.

So use up that bonus for something worthwhile. Something which will help you in the futire.

Investing in mutual funds online is very simple and paperless. Simply log in to your Groww account, choose a fund, and invest using net banking – exactly like you would when shopping online.

Start investing in mutual funds early and stay invested for longer duration to get its true benefit. Here are the top 10 mutual fund for you to bet in 2019, check out Best mutual funds to invest in 2019.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww