Diwali is widely celebrated in India; a joyous festival marked by social gatherings, bonding with close family, gifts to loved ones, and making big-ticket purchases like a car, house and so on.
While Diwali facilitates Indians to spend, it can also be an opportune time to grow money by investing in various asset classes via mutual funds.
How investors can add sparkle to their portfolios with mutual funds?
There are possibilities of many benefits of adding mutual funds during Diwali that can add that extra spark to your overall investment portfolio.
विविधता:
During Diwali, you would have noticed how sweet shops display an array of gift boxes packed with assorted sweets, something to satisfy every palate. Similarly, diversification in investing can be effective way to spread risk so that at any given time, there is at least one asset class that may be generating returns. But, the principle of diversification works within mutual funds, too. For instance, you could choose a mix of equity and debt mutual funds. Equity mutual funds diversify by investing across different companies and sectors. Plus, many schemes are centred on particular themes; there are sector-specific funds or others tailored around large caps, mid-caps and small caps. In debt mutual funds, too, you could invest in liquid funds, dynamic bond funds and other debt schemes depending on what’s suitable. However, whatever you select will depend upon your risk appetite and investment horizon.
Managed professionally:
If the prospect of doing your research is too overwhelming, you could consider mutual-fund investments. At the helm of mutual funds are professionals with the experience and expertise to manage these funds. However, it is advisable that you study the various schemes on offer to choose the mutual fund that aligns with your financial goals.
Rebalancing your portfolios:
In the days before Diwali, cleaning efforts reach a fever pitch as households discard old things to make way for the new. As individuals evolve, so do their goals and needs at various points in life. Similarly, depending on how your financial goals have evolved, it may be advisable to rebalance your mutual fund portfolio during Diwali. This would mean taking a long, hard look at your mutual funds and changing the weightage assigned to each scheme to align with your revised financial goals.
Risk appetite and financial goals:
Your risk appetite and investment horizon will primarily determine how you invest in mutual funds. If you do not have sufficient resources but still wish to invest in mutual funds, instead of making a lump-sum investment, you could opt for Systematic Investment Plans (SIPs), which is a more staggered approach to investment. Short-term investors or those looking to make a big purchase shortly could invest in liquid funds. An investor with a high-risk appetite could invest in equity mutual funds, which have the potential to generate inflation-beating returns.
Why invest in Mutual Funds during Diwali?
Diwali is considered auspicious for new beginnings. Diwali day in the Indian stock market is characterised by one hour of muhurat trading. Given that, Diwali indicates the beginning of the New Year, muhurat trading symbolises the potential for prosperity for the entire year. For individuals, the auspiciousness of Diwali can manifest in various ways – entering new ventures, forming partnerships, buying expensive things or simply changing the way you have been doing things. Hence, whether you are a first-time investor, an investor looking at new investment avenues, or considering a significant overhaul of your current portfolio, the festival of Diwali might be a good opportunity to consider starting investing a fresh or evaluating your current investment from a fresh perspective. From that point of view, investing in mutual funds during Diwali can be an option that an investor may consider.
To concludes
Diwali this year (10-14 November 2023) can be a time for new beginnings in your personal, professional and investing life. Hence, it’s also an excellent time to consider adding or rebalancing your mutual fund portfolios to maximise your returns depending on your risk appetite and investment goals.
Disclaimers:
यहां दी गई जानकारी केवल सामान्य पढ़ने के उद्देश्यों के लिए है और व्यक्त किए जा रहे विचार केवल राय बनाते हैं और इसलिए इन्हें पाठकों के लिए दिशानिर्देश, सिफारिशें या पेशेवर मार्गदर्शक के रूप में नहीं माना जा सकता है. ये डॉक्यूमेंट, सार्वजनिक रूप से उपलब्ध जानकारी, आंतरिक रूप से विकसित डेटा और विश्वसनीय माने जाने वाले अन्य स्रोतों के आधार पर तैयार किए गए हैं. प्रायोजक, इन्वेस्टमेंट मैनेजर, ट्रस्टी या उनके निदेशक, कर्मचारी, सहयोगी या प्रतिनिधि ("संस्थाएं और उनके सहयोगी") ऐसी जानकारी की सटीकता, पूर्णता, पर्याप्तता और विश्वसनीयता की ज़िम्मेदारी या गारंटी नहीं लेते हैं. इस जानकारी के प्राप्तकर्ताओं को सलाह दी जाती है कि वे अपने स्वयं के विश्लेषण, व्याख्या और जांच पर भरोसा करें. किसी भी इन्वेस्टमेंट निर्णय पर पहुंचने के लिए पाठकों को स्वतंत्र प्रोफेशनल सलाहकार से परामर्श लेने की भी सलाह दी जाती है. इस सामग्री की तैयारी या जारी करने में शामिल व्यक्तियों सहित संस्थाएं और उनके सहयोगी, इस सामग्री में शामिल जानकारी से उत्पन्न होने वाले हानि के कारण, किसी भी प्रत्यक्ष, अप्रत्यक्ष, विशेष, आकस्मिक, परिणामी, दंडात्मक या अनुकरणीय नुकसान के लिए किसी भी तरह से उत्तरदायी नहीं होंगे. इस डॉक्यूमेंट के आधार पर लिए गए किसी भी निर्णय के लिए केवल प्राप्तकर्ता ही पूरी तरह से ज़िम्मेदार होंगे.
म्यूचुअल फंड इन्वेस्टमेंट मार्केट जोखिमों के अधीन हैं, स्कीम से संबंधित सभी डॉक्यूमेंट को ध्यान से पढ़ें.