Smart Ways to Utilize Your Diwali Bonus

The festival season is here! It is that time of the year when many of us receive a Diwali Bonus from our workplaces and money as gifts from our family members, which is typically spent on buying sweets or crackers. So, instead of spending the entire bonus on such things, there are various investment opportunities you can go for this festive season.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Grow Your Wealth !

Best Plans With High Returns Available On One Platform

View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

How to Invest Money Saved on Crackers this Diwali? 

Here are some of the smart investment options that may be suitable for all investors to start their financial planning on a go. Using these options, you can descend the large value for the well-earned amount of bonus, and at the same time gift yourself for all the hard work put in during this time. Let’s discuss in detail: 

  1. Start Investing to Fulfill Your Goals 

    Warren Buffett always believed in ‘Pay Yourself First’

    This sounds easy, but deciding on the investment option and how much to invest still is the main task to focus on. If you have not invested before, invest this year to give yourself an auspicious start. To make it simple, divide your goals into long-term or short-term goals. Then decide the amount to be invested. An ideal target amount should be 30 to 40 percent of your bonus amount that you get on Diwali or thinking to spend on crackers. 

    The short-term objectives may involve a vacation to a foreign country, down payments to buy a house in 1 to 3 years, or buying your dream car. For these short tenure goals, debt funds are the right plans as they offer liquidity and are not exposed to market movements, thus giving stable returns. Investing in debt funds for a short duration will help you reach your objective steadily, as compared to a savings account. 

    In long-term goals such as retirement, education of children, etc., you can invest in a differentiated equity portfolio. Equity mutual funds provide you with good returns and are the right wealth creation tools.

  2. Improve Your Existing Investment

    One of the best utilization of your Diwali Bonus is to improve your current investments. For example, if you have SIP for your long-term objective, you can top up the money. Let’s say if you have a SIP of 10k per month. This will help you reach your goals faster and boost your investments.  

  3. Invest in IPO 

    IPO i.e. Initial Public Offering is the stocks offered by private organizations to investors for making them public and then list their stocks on exchanges. IPOs, these days, is becoming a very amazing market opportunity for retail investors, but you should always choose IPOs after appropriate research. Investors can purchase 1 lot of IPO stocks for approximately Rs 14,000. Till now, 64 IPOs have been registered on the BSE in the year 2021 with most of them operating with good returns on the day of listing. 

  4. Buy Gold

    As we all know buying gold is common in Dhanteras. Its demand has risen with the increasing prices during Diwali Week. Wedding and the festive season are on the go, so the call for gold has got a boost. Meanwhile, one can also purchase digital gold and avoid control over physical gold using various investment platforms such as Paytm, Google Pay, and more.  

  5. Give Yourself the Gift of Insurance

    With increasing unpredictability in life, having insurance these days is a necessity as it protects your expenditures during critical times. If you have not purchased an insurance policy for yourself yet, now is the time to buy. Life insurance offers financial coverage for an eventuality associated with human life such as disability, death, retirement, accident, etc. In the meantime, a general insurance provider offers insurance plans to secure travel, health, motor, and home. It is very important to have insurance as it provides financial security in case of an unfortunate event. 

  6. Invest in PPF

    PPF, Public Provident Fund is one of the safest options to invest in. It can help you secure your retirement. The minimum tenure of PPF is 15 years with an investment of as little as Rs.500 to open an account. You are allowed to open a PPF account in the post office or on any nationalized bank. Additionally, Income Tax benefits are also valid on the principal amount that is invested in a PPF account. The rate of interest for PPF is fixed and is paid by the Government for every quarter. Presently, you get a 7.1% interest rate on PPF, which is more than the interest rate on a savings bank account. 

  7. Pay off Your Existing Loans

    Another smart way to utilize your Diwali bonus is to pay off your existing loans. Arrange your loans as per the rate of interest they are attracting. For example, the debt on a credit card accrues a high rate of interest, so you must pay it off first from your bonus amount. Additionally, you may move on to pay off your other loans with relatively lower interest rates, fully or partially, as per your convenience. It improves your creditworthiness and enables you to invest and save more in turn. 

Wrapping It Up!

Steve Jobs rightly said - ‘Dots Will Somehow Connect in Future’. In this case, small investments of today can create a huge corpus for you tomorrow. Utilizing your Diwali bonus in any of the aforementioned ways and effectively fulfill your long or short-term goals. Make your bonus count by selecting the right gift for your loved ones and yourself. Let this time of the festival of lights guide you to make the right decision. 

Choose Wisely and Invest Smartly. Happy Diwali!

Written By: PolicyBazaar - Updated: 27 October 2021

Investment plans articles

Recent Articles
Popular Articles
RD Calculator (Recurring Deposit)

08 Dec 2021

Just like any other investment option, Recurring Deposit is also...
Read more
How to Invest Money

25 Nov 2021

The investment made today is the asset created for tomorrow...
Read more
Gold Bonds in India for NRIs

24 Nov 2021

Gold is an asset whose value increases over time that may be...
Read more
PIS Account for NRI

24 Nov 2021

Non-Resident Indians can operate in the recognized stock...
Read more
Process to Fill SSY Form in Post Office?

20 Nov 2021

The Sukanya Samriddhi Yojana (SSY) is a post office scheme...
Read more
Best LIC Policies For Investment in 2022
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2022
Are you looking for an investment avenue that is safe and secure, earns substantial returns with a short locking...
Read more
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Read more
State Bank Of India Investment Plans
Monthly investments plan is a popular investment options for individuals who wants to gain a profitable investment...
Read more
Download the Policybazaar app
to manage all your insurance needs.