This Diwali, Declutter your portfolio

Seek Blessings from Elders/Experts:

Just like we seek blessings from elders during Diwali, consulting a financial advisor is one of the foremost things to do while building a financial plan. A financial advisor helps you ride through emotions and difficult periods during your investment journey.

Safety First, Just Like When We Handle Firecrackers:

Just as we exercise caution with firecrackers, safeguarding your investments is paramount. Revisit and ensure your financial plan is equipped with essential insurance and an emergency fund. Term and health insurance is a must. For emergency fund, one may consider investing in overnight or liquid funds.

Rangoli of Diversification:

Diversification can be as colourful and diverse as Rangoli. Just like Rangoli has a diverse blend of colours, your investment portfolio should also have a blend of different asset classes that helps reduce risk. Ensure your portfolio has a mix of different asset classes – equities, debt, gold, etc. Choose a hybrid fund as per your need.

Organise Like You Do Your Cupboards:

A key aspect of Diwali celebrations is the cleaning up of homes and workspaces. Just like we discover old clothes that don’t fit or are out of fashion, in investing too, decluttering from time to time is essential for maintaining sound financial health.

As an investor, decluttering exercise should entail getting rid of debt liabilities in a timely and planned manner, minimizing unnecessary expenses, and doing away with investments that no longer align with your goals. This Diwali, keep your portfolio goal-centric.

Continuous Monitoring:

Cleaning isn’t a one-time affair. Just like our homes need regular upkeep, portfolios require continuous monitoring. Set a schedule, maybe every Diwali, to assess, adjust, and ensure your investments shine bright.

Gift of Patience:

While Diwali is a festival of sharing happiness by giving gifts, the best gift one can have is the gift of patience by investing in mutual funds and holding them for long term. An investment during Diwali (Samvat) in the past has created wealth for investors:

A clean and streamlined portfolio is not just aesthetically pleasing but also more effective. This Diwali, as you create space for prosperity and positivity in your homes, make sure your investments are also poised to shine brighter.