Summary of this article
· Dhanteras and Diwali are considered auspicious to buy precious metals. The rituals are finance related and it is better to plan and review investment at this occassion and make investment to cerate wealth
If you are planning to do something new this Diwali, start with financial management. Diwali, the festival of lights, is a symbol of warmth, wealth, prosperity, and positivity. For businesses and traders, it is the beginning of a new year. There is a belief that trading on Diwali during 'shubh muhurat' brings more wealth. Even the Securities and Exchange Board of India (Sebi) allows 'Muhurat Trading' on Diwali, usually for one hour. Whether it is Dhanteras or Diwali, the rituals involve finances and focus on wealth creation. So, if there is a surplus, you may look at these investments to save money and create wealth.
According to the Reserve Bank of India's (RBI) data, household financial savings have increased to 5.1 per cent of the gross national disposable income (GNDI) in the financial year 2023-24. It was 4.9 per cent in the previous year. Increasing contribution by retail investors, especially in mutual funds, shows a rising level of financial awareness and inclination towards formal saving instruments.
Taking that into account, here are five investment options one may consider this Diwali for wealth creation.
Gold And Silver Investments
Diwali and Dhanteras are especially considered auspicious when buying precious metals. That's why the demand for gold and silver increases significantly this time of the year. According to the World Gold Council report in September 2025, wedding-related purchases are steady because of the high prices. Notably, gold exchange-traded funds (ETFs) are witnessing increased interest shown in their increased Asset Under Management (AUM) in September 2025. Gold ETFs and Digital gold offer a safer alternative to physical gold. If jewellery is not required, one may look at them to invest in gold and silver to hedge against inflation as well as currency fluctuation.
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a fixed-return, government-backed instrument. The guaranteed interest is available to all age groups. If it is not already a part of the portfolio, one may look at it, especially from a taxation perspective. PPF enjoys enviable tax benefits. PPF enjoys an exempt-exempt-exempt (EEE) tax status, which means investors have to pay no tax on principal investment, interest, or maturity proceeds. Starting early can help, as it has a lock-in period of 15 years. However, one can extend it in a block of five years once the 15-year term is over, and ensure tax-free savings.
Fixed-Interest Instruments
Post-office schemes or bank FDs are safe investments and readily liquidable. One may invest in these to create an emergency fund that can be withdrawn anytime. One usually buys insurance to protect against health-related exigencies, but there could be other unexpected events, such as job loss, family member illness, etc. Having insurance protection against all kinds of exigencies is not possible, but an emergency fund can be a friend in need.
National Pension System (NPS)
The National Pension System (NPS) is a long-term investment tool. It is available for professionals, self-employed, resident, and non-resident Indians, and offers an annuity upon exit. With over nine crore subscribers and AUM crossing Rs 16 lakh crore, one may look at it for long-term savings. Recently, the Pension Fund Regulatory and Development Authority (PFRDA) launched the Multi-Asset Framework (MSF). Under MSF schemes, 100 per cent equity exposure is allowed, and one can withdraw the money after 15 years. The return from the NPS Tier 1 equity option has been an average of around 13 per cent since inception.
Mutual Funds
The rising number of folios in open-ended schemes shows investors' interest in mutual funds. These remain a favoured tool for wealth creation among retail investors for their diversification, professional fund management, and easy access. As of September 30, 2025, the folio in open-ended schemes grew to around 25 crores compared to 23.6 crore as of April 30, 2025. Further, one can enter and exit anytime. Except for a few types of schemes, such as equity-linked savings schemes (ELSS) or retirement mutual funds, there is no lock-in and no eligibility age bracket. The choice is also wide under both active and passive funds. With the Systematic Investment Plans (SIPs), one can make small contributions and create wealth.
Diwali is an opportunity to renew commitment towards financial discipline, while mixing the traditional and innovative investment options. So, align with your goal and leverage the festive spirit to invest and create wealth for a brighter financial future.
