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Money lessons from Diwali

  November 12,2020

4 Money Lessons from Diwali

Diwali is the festival of lights, and we all celebrate Diwali with lot of pomp and enthusiasm. Families clean homes, get together, exchange gifts, light lamps, etc. It is also the time when many people make big ticket purchases.

However, Diwali is more than just a festival, as it can impart financial lessons. 

In this article, we will learn about the different money lessons that we can learn from Diwali.

1. Cleaning up your portfolio

Cleaning our house, throwing out clutter, painting our house are some few things that we do to prepare our homes for Diwali. We can apply the same principle to our investment portfolio.

We see that many investors invest in several funds of the same category or continue investing in funds that no longer serve their investment goals. Reviewing your portfolio regularly is one of the essential financial planning habits that you can incorporate in your life. It will help you figure out the laggards in your portfolio that are negatively affecting your portfolio or do not serve your financial goals. It will ensure that your portfolio performance is optimised and you can achieve your goals within the time limit.

2. Light the lamp of financial literacy

Lighting earthen lamps or fancy lights is one of the integral aspects of Diwali. Light helps to dispel the darkness. The lamp can also signify knowledge that removes the darkness.

Similarly, when you are investing, it is important to know the difference between myths and facts, your financial goals and risk tolerance to avoid financial mistakes.

Reading books and articles on investing, attending workshops, visiting a professional will help you invest correctly and avoid mistakes.

In absence of financial literacy, investors may be susceptible to committing mistakes such as selecting a wrong fund or chasing after short-term returns by following the footsteps of their friends and relatives.

Identifying the financial mistakes and steering clear from these mistakes will help to fulfil your financial goals.

3. Play Safe

Many people enjoy celebrating Diwali with fireworks and crackers. Adherence to safety measures and ensuring precautionary wayswhile using firecrackers can help us have safe Diwali and enjoy it to the fullest. 

In the similar way, it is important to safeguard you and your family members’ lives through adequate life cover, health insuranceand other insurance covers. An emergency fund will come in handy to deal with unforeseeable emergencies such as job loss and urgent house repairs. It is essential to take care of these elements before investing in mutual funds or other investment options to fulfil financial goals.

4. Diversify your portfolio

Diwali is incomplete without a wide variety of sweets and an assortment of nuts, dry fruits and chocolates. We see a great variety in gifts, sweets andrangoli colours.

Similarly, diversification of your portfolio will allow you to optimise the performance of your portfolio and minimise risks. A diversified portfolio with different asset classes such as equities, debt and commodities will optimise your portfolio’s returns across different business cycles. 


Diwali is a joyous festival, and the various aspects of the festival can teach us various money and financial lessons that we can implement in lives to fulfil our financial goals.

Reviewing our portfolio regularly, cleaning the clutter, studying about the different aspects of investment from the right sources, insuring our risks, keeping an emergency fund and diversification of our portfolio are some financial lessons that we can take from the festival of lights.

If you want to fulfil your financial goals and haven’t invested in mutual funds, this is the right time to invest in mutual funds and plan for you and your family members’ future. 

Talk to mutual fund distributor or advisor to know more about mutual funds. Happy Diwali!!