This Diwali, Don’t Burn Your Money, Pledge to Invest

Personal Finance

The festival of Diwali is also considered auspicious, in addition to being one of India’s largest festivals. It is celebrated to commemorate the return of King Rama. After 14 years in exile, Rama returned to Ayodhya after winning the battle against Ravana, a demon king who planned his destruction.

The mythology associated with Diwali varies depending on the different ways of celebrating in various regions and cultures. Even so, they convey a sense of joy and celebration, the importance of self-inquiry and self-improvement, and the desire to be highly conscious and aware of God.

As Diwali triumphs over darkness, hope triumphs over despair, good triumphs over evil; and knowledge triumphs over ignorance. This article provides a few investment tips to help you make the right investment decisions. These investment tips will help you improve your financial outlook. Therefore, we encourage you to read this article until the end to get the most out of it.

Things to consider before making an investment 

The key to achieving your financial goals and dreams is to allocate your resources wisely. If you use the cash gift effectively, you can achieve your financial goals this Diwali. You can get multifold returns if you invest wisely. When you get a return above inflation, it is called an “accurate rate of return.” You can maximize returns for an extended period by effectively using your wealth. If you’re investing, we recommend considering these investment tips.

Identify your risk profile

As risk tolerance and appetite differ from individual to individual, it can be dangerous to blindly copy another’s investment style or portfolio without understanding your own risk profile.

When choosing investments, you should look inside yourself and then make a prudent judgment. For example, suppose volatility makes you nervous. In that case, you should avoid risky investments like stocks and equity mutual funds. 

It’d be better if you invested in fixed-income instruments instead, like fixed deposits, PPFs, NSCs, etc. All asset classes have risk characteristics, like equity, debt, gold, real estate, or investment avenues. Before you invest your hard-earned money, you need to recognize the risk level and decide if it’s right for you. High-risk investments can yield high returns, but if you prefer to avoid taking on high risks, you can opt for a safer option.

Identify your investment objectives

To achieve your investment goals, you must decide whether you are trying to grow wealth by taking high risks, preserve capital by taking low risks, or generate income from investments.

Setting an investment objective is a wise idea. It simply means figuring out why you want to invest.

The fundamental attributes of all investment avenues are that they either grow, preserve, or generate income. Therefore, when choosing an investment option, it is vital to identify these fundamental attributes and recognize them accordingly. Make sure every investment matches your investment objectives. 

In that case, you can design an investment portfolio with suitable instruments to reach your financial goals.

Taking into consideration your age

At the beginning of your life, you can handle a higher level of risk and invest in riskier assets than you could later on. As you get older, your ability to manage risk might decline. Henceforth, you need to know sound investing tips for better financial goals. 

Investment horizon awareness

As an investor, it is wise to consider the timeframe for which you can invest your hard-earned money or when you want to receive the principal amount and the return on your investment. The more risk you are willing to take in the long run, the more money you will be able to earn. Therefore, you must make a crucial decision to set your desired timeline.

Analyzing investment costs

Every investment comes with a cost, such as fees, expense ratio, Demat charges, locker rent, etc. You need to consider these costs while investing your assets to avoid your gains getting eroded, as the costs are linked to the investment.

Quick bucks lure many people, but they need to know the hidden charges; you must ask for all the charges from your broker while making the final payment. Therefore, you need to have an adequate understanding of its costs.

Understanding the tax implications

Since your objective is also to earn tax-efficient returns, you should ensure that your portfolio’s post-tax returns are worthwhile. If you plan carefully, you may be able to avoid paying higher taxes on your returns, resulting in a loss on tax return day.

Investment is not just about collecting investment tips. It is also a matter of disciplined investing. As long as you follow a disciplined approach based on a systematic process and exercise prudence, it would be advisable not to worry about when the market performs well.

You will be able to make reasonable returns on your investments. So, the most significant thing to remember during this Diwali is that you should be open when choosing your investment instrument. You should not invest your entire Diwali corpus in one asset class, such as gold, fixed deposits, or stocks.

It would be most beneficial if you chose a strategy for your investments that would be the most effective. The most effective way to achieve your short and long-term financial goals is to diversify your investment portfolio according to your risk appetite and the investment program in mind.


The investment tips we have shared with you may have motivated you to make a decision that will enable you to make a wise investment. These investment tips will help you to ensure that your family is well off financially and that you can provide them with the quality of life that they deserve. 

Piramal Finance is a well-known name that can provide a beneficial launchpad to start your investment journey. They can also provide you with investment tips that can assist you in reaching lofty heights in the investment world. So, don’t delay; get started now, and don’t wait. Investing is a game of chance where the one who jumps in first catches the worm (the bigger one).