The festive season is officially here. From streets adorned with colourful decorations to kitchens lined with mouthwatering delicacies, the country is buzzing with excitement. It is also the season of the biggest sales of the year, offering the perfect opportunity to shop for clothes, jewellery, appliances, electronics, or even gifts for your loved ones.
But while the festive season brings exciting deals and discounts, it also presents lucrative investment opportunities for wealth creation and securing your financial future. In this article, we’ll equip you with the best investment practices for the festive season so you can maximise returns and ensure long-term financial stability.
Here are top 4 Best Practices you can follow for the Festive Times –
1. Emergency Fund First!
While it’s great to invest, never forget the basics. Ensure your emergency fund is not ignored as you dive into festive investments. Be prepared for surprises your life may throw at you by having 3-6 months’ worth of expenses set aside. This will help you sleep better while your investments grow.
2. Avoid Emotional Investing
With the festive period, comes emotional buying — and sometimes, emotional investing. Avoid getting swept away by trends or media hype about particular investment options. Stay aligned to your financial goals, do your research, and invest based on logic, take expert help if required. Remember, festive FOMO (fear of missing out) isn’t a valid investment strategy!
3. Create a festive budget
The lucrative offers on products and services make it easy to get carried away and spend more. This can affect your budget for other investments like mutual fund SIPs, recurring deposits (RDs), or securities on your watchlist.
Therefore, it’s essential to create a festive budget and follow it strictly to avoid depleting your savings and ensure you stay on track with your long-term investment goals and financial commitments.
4. Make good use of your bonus!
Many Indian businesses give Diwali bonuses to employees. Rather than splurging your entire bonus on impulse buying, you can invest a considerable part of your bonus to various investment instruments like Mutual funds, Bonds, NPS, REITs, ELSS etc depending on your investment goals. The festive period is also considered an auspicious time to enter the stock market.
Here are Some Investment Options you can Explore during the Festive Season –
1. Invest in gold
The festive season is the best time to buy gold. The precious yellow metal is also an excellent investment option. Gold has historically been the preferred investment avenue for Indians as it acts as a hedge against inflation and maintains a stable value over time.
You can invest in physical gold through biscuits or coins or digitally through sovereign gold bonds (SGBs) or gold exchange-traded funds (ETFs).
2. Start a SIP in equity mutual funds
The festive season is the perfect time to start a mutual fund SIP. Equity mutual funds are a smart choice for investors who wish to benefit from the high growth potential of equity investments but have a low-risk appetite.
These funds invest across various asset classes and securities to diversify the portfolio and spread the risk. Moreover, many fund houses also launch new schemes during the festive season, offering unique opportunities for investors.
3. Real estate investments
The festive season is a great time to invest in a residential or commercial property or even a plot of land. Real estate investment enables you to create a valuable asset that appreciates over time. It could be a meaningful investment for your family or even generate passive income through rental yields.
Many builders and real estate agents also run special offers during the festive season, making it an excellent time to get the most value for your money.
4. Fixed deposit or recurring deposit
If you’re risk-averse and seeking investment opportunities that aren’t affected by market volatility, consider opening a fixed deposit (FD) or starting a recurring deposit (RD). An FD allows you to invest a lump-sum amount for a fixed period with a bank. It offers a pre-determined interest rate, ensuring secure and predictable returns.
On the other hand, an RD allows you to invest a fixed amount at consistent intervals, typically monthly, to earn better returns than standard savings accounts.
Embrace the Festive Spirit with Tata Capital
The festive season makes for the perfect opportunity to spend time with loved ones, start new ventures, and make smart investments. From safer options like gold and fixed deposits to equity investments for potentially better returns, this is the perfect time to diversify your portfolio and leverage exciting offers.
No matter which investment avenue you choose, Tata Capital’s seamless process ensures a hassle-free investing experience. Visit the official website to start your investment journey and grow wealth this festive season.
23 October 2024
4 mins read
Previous Post
