With the festival season approaching, financial experts are advising investors to review their investment portfolios rather than chase short-term gains linked to the celebrations.

Key Highlights

• Experts advise treating this Diwali as a time to review and rebalance investments—not chasing short-term trends.
• Recommended strategy: diversify across large-cap equities, debt instruments and gold instead of concentrated bets.

Asset managers emphasise that while festivals like Diwali often bring heightened market optimism, this year’s backdrop of global uncertainty, domestic inflation pressures and uneven consumption calls for caution.

Rather than treating equities or commodities like festive fireworks—bright but fleeting—advisors suggest a balanced portfolio mix of growth (equities) and stability (debt, bonds, or gold). They urge investors to focus on long-term wealth creation and avoid impulsive investments driven by market sentiment.

Experts also warn that high valuations and unpredictable global trends may lead to volatility in the coming months. Therefore, investors should reassess their risk appetite, rebalance their portfolios, and maintain adequate liquidity to handle market corrections or emergencies.

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Additionally, financial planners highlight that Diwali is a symbolic time to declutter not just homes but also finances. Investors are encouraged to review underperforming assets, consolidate multiple accounts or funds, and ensure adequate insurance coverage. By aligning investments with financial goals and adjusting asset allocation based on current needs, individuals can enter the new year with a stronger, more resilient financial strategy.