Diwali Investment Strategy: What To Invest In To Achieve Rs 1 Crore Corpus In The Long Term
This Diwali, investors can plan a mix of equities, tax-saving funds and debt instruments to build a corpus of Rs 1 crore.
Diwali is a couple of weeks away. While the festival is all about lights, sweets and celebrations, it is also an auspicious time for financial planning. Investors see it as an ideal time to start or restart long-term wealth-building plans. Should your dream be to build a corpus of Rs 1 crore, the trick is in choosing the right set of investments and sticking to it.
Start With Equity Mutual Funds
For long-term goals spanning 10 to 15 years or more, equity mutual funds remain one of the best instruments. They have the potential of higher returns than traditional savings schemes, though with more volatility. Systematic Investment Plans (SIPs) in large-cap or diversified funds allow the investor to spread risk and benefit from rupee cost averaging. Assuming an average annual return of 12%, a Rs 20,000 monthly SIP for around 15 years can make more than Rs 1 crore.
Add Direct Equity With Caution
While mutual funds are taken care of by professionals, investing directly in stocks can be extremely profitable, provided it is done with caution. Search for quality blue-chip stocks with good fundamentals and long-term growth prospects. Avoid chasing short-term trends or making emotional stock picks because of market fluctuations, especially during festival seasons.
Select Tax-Efficient Alternatives
Tax-saving options such as Equity Linked Savings Schemes (ELSS) not only provide the promise of market-linked growth, but also offer deductions under Section 80C too. Invest in ELSS in a disciplined manner as part of your Diwali planning, combining tax efficiency with wealth creation in the long run.
Diversify Across Asset Classes
While equities form the core, diversification reduces risk. Consider including debt mutual funds, Public Provident Fund (PPF) or National Pension System (NPS) for stability and guaranteed returns. These investments act as a cushion in times of market fluctuation.
Consistency Over Timing
The festival season may tempt investors to time the market, but historical data shows that consistent investing outweighs short-term timing strategies. Automating investments through SIPs ensures discipline and removes emotional bias.
This Diwali, instead of just buying gold or gifts, think about lighting up your financial future. With a disciplined approach, the right mix of equities, tax-efficient instruments and diversified investments, achieving a long-term goal of Rs 1 crore is possible.
