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5 Easy Tips To Start Investing This Diwali 2022

This Diwali, start investing in a brighter financial future!

<div class="paragraphs"><p>Image by Freepik</p></div>
Image by Freepik

We all know that Diwali is the festival of lights and colours and celebrations. That means it’s time for the infamous Diwali Splurge. It is that time of the year when we spend our savings extensively for parting and food, buying new clothes, new appliances and maybe even a new home.

Well, while the new home sounds like a pretty good investment, the rest are just expenses that you can reduce while keeping the Diwali spirit still going strong. All you have to do is, keep a sum aside for investing. Yes, not saving, but investing. Investing is a great habit and what better time to begin investing than Diwali?

Now, if you’re convinced why investing in Diwali is a good suggestion, go ahead and take a look at some of our tips for you to start investing this Diwali:

Open An FD Or RD

Let’s start small. Most of you might already be aware of FDs i.e. Fixed Deposit accounts. Some might even have their own FD in their respective bank. These are nothing but a type of term deposit where you invest a good sum of money for a fixed duration, after which you get guaranteed returns on your investment. What makes them worth is the fact that an amount in FD earns way more interest than the same amount when kept idle in a savings account.

Similarly, now there’s RD i.e. Recurring Deposit account. It is also a type of term deposit. However, in an RD, you can invest even in small amounts. The only catch is that you should invest a fixed amount every month. The interest rates on both FD and RD are the same. So, it’s upto you.

What do you choose to do? Put your entire Diwali bonus into an FD or start saving regularly in RDs? The choice is yours!

Start Investing In SIP

The Systematic Investment Plan, popularly known as SIP, is one of the safest ways to invest in Mutual Funds. You can also invest in Mutual Funds by depositing a lump sum amount if you want to invest your entire Diwali bonus. However, if you only want to invest a part of it, SIP is the way to go.

Here, you can invest as little as ₹500 a month. All you need to do is, give your bank standing instructions and your decided SIP premium will be deducted from your account every month. This investment plan is great for long-term wealth building. Moreover, it is also tax-saving with deductions available in section 80C of the Income Tax Act.

Buy Digital Gold

Buying gold during Diwali is considered auspicious. What if this Diwali you don’t buy actual gold but invest in Digital Gold instead? You would still be keeping the tradition alive by buying gold. However, in a modern twist, you’ll be saving money on those making charges.

We all know Gold appreciates over time. And so does Digital Gold. You simply keep investing according to the current gold rate and whenever you want to get your gold physically, get it delivered to your home. That way, you don’t have to worry about storing your gold in lockers anymore. Only get it delivered when you need it.

On top of that, buying digital gold also enables you to invest in an appreciating asset, even with the smallest of investments. What more could you ask for?

Invest In PPF

Public Provident Fund, also known as PPF, is another great investment scheme that helps in long-term wealth accumulation. It is one of the safest long-term investment plans that is also backed by the Indian government. You can start investing in PPF by opening an account at any post office or a major bank.

Currently, the interest rate on a PPF investment is 7.10% per annum with effect from 01.04.2020. Here, you don’t even have to invest every month. Just make sure to invest a sizeable sum every year and you’re good to go. Moreover, PPF is completely tax-free, making it an ideal investment plan for beginners.

Buy An NSC

Another government-back scheme that you can invest in is the National Savings Certificate, known by its abbreviation, NSC. Here, the minimum investment starts at ₹1,000 per NSC and the interest rate is 6.8% per annum. It comes with a lock-in period of 5 years and promises guaranteed returns on maturity.

This investment scheme also provides tax rebates upto ₹1.5 lakh under Section 80C of the Income Tax Act. Moreover, NSC can also act as collateral for loans, which means getting credit in the future will be much easier for you with an NSC.

Disclaimer: This article does not intend to pass on any financial advice and BQ Prime does not endorse any of the funds/schemes mentioned above. Please invest at your own discretion.