As Ramneek Ghotra, Chief Growth Officer at Finvasia, puts it, “Diwali is all about new beginnings and fresh starts, so why not do the same for your finances? Whether you’re just getting started or already have experience, it’s never too late—or too early—to start investing.”
Why rebalance your portfolio this Diwali?
Over the year, economic shifts or personal changes may affect your financial needs and goals.
Rebalancing your portfolio during Diwali is a way to align it with your current financial goals, ensuring you’re on track to build wealth over time.
Expanding beyond traditional investments
While Diwali investing has traditionally focused on fixed deposits and gold, Ghotra encourages exploring options beyond these.
“Stocks, bonds, real estate, mutual funds, and ETFs are great ways to diversify and build wealth,” he says.
Broadening your portfolio helps spread risk and can enhance growth potential.
Power of SIPs and long-term planning
Starting a Systematic Investment Plan (SIP) during Diwali could be a game-changer. SIPs allow for consistent investing, cultivating discipline and harnessing the power of compounding.
Even a modest SIP of ₹5,000 per month from age 25 can grow to nearly ₹1 crore by age 60, assuming a 12% return—a reminder that small, consistent investments can lead to significant wealth.
“The real focus should be on building long-term wealth, not just saving for short-term needs,” Ghotra advises.
He emphasises setting clear financial goals and investing for the long haul, allowing your money to work for you over time.
Steps for Diwali portfolio rebalancing
Review financial goals: Ensure your goals remain relevant and refine them as needed.
Assess asset allocation: Look at the balance among asset classes, adjusting to maintain a diversified portfolio.
Reallocate strategically: Realign to reduce overexposure and consider new asset classes if market conditions have changed.
Set up or increase SIPs: A SIP can be a disciplined, hands-off way to grow your portfolio consistently.