INSUBCONTINENT EXCLUSIVE:
Diwali 2018: The investment strategy varies from one person to another.Diwali, the festival of lights, is considered an auspicious occasion
It is generally believed that any investment made during the Diwali period can provide better returns
From equities and gold to fixed income instruments like fixed deposits (FDs) and recurring deposits (RDs) as well as mutual funds - there
are options galore which can increase your wealth
Financial experts suggest that it is always better to invest with a long-term perspective
Wealth-creation is a long-term process which requires control over short-term temperament, with a proper commitment to achieve financial
goals, they say.How should you plan your investmentYou should always gauge your risk-appetite before investing, said Brijesh Parnami,
Executive Director and CEO, Essel Wealth Services
"It is advisable to plot a detailed framework of one's current financial situation before going for any kind of investment
One should take into consideration his/ her goals and most importantly, evaluate the level of risk appetite that he/she has," Mr Parnami
told TheIndianSubcontinent.Age and contingency planning are other factors should be considered before choosing an investment option
Taking help of financial advisors is always better as they impart proper knowledge of financial instruments and also help in switching funds
as per market conditions.Anil Rego, CEO and Founder, Right Horizons suggests going for a diverse portfolio
"Make an investment plan that is anchored to asset allocation principles
Remember, no particular asset-be it stocks, gold, debt or cash will out-perform in all conditions
That's why a portfolio with diversified styles is required," he said."Don't construct a portfolio based on recent performance or on a bull
Once you follow an asset allocation model, up and down moves in the market do not matter much
Decide how much you should have in the chosen assets and let the mix work up the magic
2019, you would be doing much better than others if you follow asset allocation," Mr Rego added.Here are 10 investments options that you can
try ahead of Diwali 2018:1
Gold and gold-related investments: Gold is a common investment for Diwali and Dhanteras
Traditionally, gold has been a hedge
So, some purchase of gold is warranted in the portfolio
"Seeing the rising gold prices due to festive demand, it is suitable to have 10-15 per cent allocation given towards gold or gold funds,"
Vijay Kuppa, Co-Founder, Orowealth.Aditya Maru, Founder and CEO, Augain Wealth Management Private Limited, said "Instead of buying physical
gold, one can also buy gold in electronic form (GOLDBEES) which is liquid in nature and can be sold instantly on the exchange." Gold bonds
are also a good investment option
Fixed deposits (FDs): Bank fixed deposits (FDs) are secure investment instruments that offer higher interest rates than deposits in savings
FDs can help you meet short-term liquidity needs
FD accounts can be started for a specific period, which can be as short as seven days.3
Recurring Deposits (RDs): Recurring Deposit is a product that provides an opportunity to build savings through regular monthly deposits of
fixed sum over a period of time
RDs help customers build on their savings in small, regular pay-outs.4
Investment in equities: Investing in stock markets should only be done with a long-term time horizon and not for trading purposes
"Equity markets look like a good place to make some bets with a 3-5 year horizon
Consumption-oriented stocks in midcaps look attractive
Avoid debt-ridden stocks and cyclical plays
Domestic consumption is a multi-year theme and any company that has the potential to tap urban, as well as rural 'Bharat', should do well,"
year," said Prasanna Pathak, Fund Manager-Equity, Taurus Mutual Fund.5
"MFs take care of the fund performance
It helps wealth to grow and provides liquidity option during times of need
Investors can invest in different types of mutual funds based on their goal requirements and risk appetite," he said.6
Systematic Investment Plans (SIPs): This Diwali, you may also try investments through the Systematic Investment Plan (SIP) route in
diversified equity mutual funds for long-term wealth creation
SIP is a method of investing a fixed sum regularly in a mutual fund scheme
It allows an investor to buy units regularly on a specific date of the month
The SIP may not be very appealing initially but with time, the investment can grow multi-fold
accumulate about Rs 22.3 lakh when your child turns 18," explained Mr Rohira.SIP can also serve as one of the best financial gifts to be
given to a loved one for Diwali, experts suggest
"You can start an SIP in your loved one's name
It will not only multiply the value of gifts given, but will also serve as a good financial education so that your loved ones start becoming
Exchange-traded funds (ETFs): ETFs are are similar to mutual funds but trade like stocks
nature, suggested My Parnami.9
Public Provident Fund (PPF): PPF is a long-term investment scheme which comes under the exempt, exempt, exempt (EEE) status
The maturity amount and the overall interest earned during the period of investment is tax-free
It has a lock-in period of 15 years
For the quarter ending December, PPF investments will fetch an annual return of 8 per cent.10
For the quarter ending December, post office MIS account offers an annual return of 7.3 per cent
The interest on post office MIS account is payable monthly
The maximum investment limit is Rs
4.5 lakh in single account and Rs
9 lakh in a joint account, according to indiapost.gov.in.
