Summary of this article
While festivals will always be about tradition and celebration, channelling a part of that festive budget into investments can help fast-track critical goals, such as your children’s education or retirement.
Festivals in India have always carried deep cultural as well as financial significance. They not only bring people together in celebration but also mark new beginnings. During this time, households make important financial decisions—ranging from traditional investments in gold and silver to newer digital alternatives. The festive season also offers an opportunity to rethink and diversify one’s portfolio.
Harsh Gahlaut, Co-founder & CEO, FinEdge, says, “Festive spending and investing address two very different needs. One is rooted in tradition and celebration, bringing joy to families. The other is about securing the future and achieving critical goals like your children’s education or your own retirement. While festive spending remains buoyant, and rightly so, a shift is underway.”
“At Grip Invest, we are observing a clear shift where festive spending is no longer just about consumption, but also about channelling money into smarter investments,” says Vaibhav Laddha, CEO, Grip Invest.
During this season, more households are consciously setting aside a portion of their festive budgets for investments that build long-term wealth. While gifting and shopping continue to rise, investors are increasingly allocating festive bonuses and savings into fixed-return opportunities such as corporate bonds.
“These products resonate strongly with middle-income households who want predictable returns without compromising liquidity, a priority when festive outflows are higher,” says Laddha.
Whether it is the customary gold rush or the symbolic ‘muhurat’ trades at the stock market, the festive season is slowly evolving into more than just a time to spend. “Mindful investment choices made during festivals, even in small amounts, can contribute meaningfully to future financial stability and wealth creation,” observes Gahlaut.
Furthermore, the RBI may cut rates during the festive season to support growth and manage capital flows. For fixed income investors, lower rates translate into an increase in bond yields. This creates an opportunity for Indian debt investors to position them ahead of the rate cut cycle.
Each festive season fuels key sectors of the Indian economy, creating investment opportunities in equities, mutual funds, and alternative assets. With retail trade in India reaching Rs 1-2 lakh crore during festival seasons, this period contributes significantly to annual economic growth and market stability.
“Wealth building isn’t just about market highs; it’s also about securing stability. Recognising this, Grip introduced Muhurat investing in fixed income products in 2024, extending the tradition of auspicious investing beyond equities,” Laddha says.
So, while festivals will always be about tradition and celebration, channelling a part of that festive budget into investments can help fast-track critical goals, such as your children’s education or retirement.
By adding fixed income assets to your portfolio this Diwali, you can balance market-driven growth with steady, predictable returns. Just as a well-diversified portfolio thrives on both high-growth and stable assets, embracing fixed income investments this festive season can help you align propensity with financial security for the year ahead.
