New Beginnings, New Financial Goals: A Diwali Checklist for Your Portfolio

The festival of Diwali symbolises a time of celebration, reflection, and new beginnings. For many, it also marks the beginning of a new financial year. As per Hindu belief the New Year, or 'Samvat', also begins on Diwali providing a perfect opportunity to investors to start their financial journey with a fresh and positive approach.

Individuals can consider using the auspicious occasion to re-imagine their financial goals and make informed investment decisions, which can pave the way for a secure and prosperous year ahead.

Here's a look at some things individuals can do this Diwali to make the most of the auspicious occasion and continue their financial journey with a fresh perspective:

Review and Reflect on the Past Year

Individuals can use the festive occasion to take cognisance of their financial standing. The festive occasion can also be used for updating one's broader financial goals in line with major developments such as marriage, the birth of children or recent job-related changes such as promotions. Based on the recent life-events, individuals can re-align their financial goals such as saving for their children's education, planning for retirement, etc.

Diversifying Your Portfolio

Market fluctuations can cause your asset allocation to drift from your intended strategy. Individuals can assess whether their investments have met their expectations and identify assets which have outperformed and underperformed in the past year. After gaining an understanding of which assets have performed well and which have not, investors can rebalance their portfolio to get better returns. Diwali is an excellent time to diversify your portfolio. Investors can use the auspicious occasion to plan new investments. Investors can benefit by diversifying their portfolio across equities, debt, gold, and real estate.

Make a 'Shubh' Investment with Muhurat Trading

The stock market opens for a special one-hour session on Diwali day, known as 'Muhurat Trading'. This auspicious window is considered a favourable time to make new investments. Investors can use the trading window to make a small token-investment for the purpose of partaking in the tradition of muhurat trading and welcoming good fortune and prosperity. However, investors should avoid speculative bets and focus on buying stocks after conducting thorough research.

Channel Festive Bonuses and Gifts Wisely

Several companies reward employees with bonuses or cash-gifts on Diwali. Employees may be tempted to spend this money on celebrations. However they can consider using the bonus amount for aiding the fulfillment of their financial goals. The money can be used for starting a new Systematic Investment Plan (SIP) or making a lumpsum investment or for purchasing stocks. Individuals who are currently paying off debt can also use the bonus amount to reduce their overall debt burden.

Illuminate Your Future with Financial Planning

Individuals can consider using the festive holiday to do things that they may have been delaying, such as tax planning or purchasing insurance. Individuals who have opted for the Old Tax Regime can consider reviewing whether they have managed to make the most of the Section 80C deductions. On the other hand, the festive break can also be used to review whether your life and health insurance coverage is adequate to protect your loved ones from unforeseen circumstances.

This Diwali, as you light the lamps that dispel darkness, take a moment to illuminate your financial path by making conscious and well-thought-out decisions.