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Shopping or Investing: What Should You Choose this Diwali


With so many excellent shopping offers out there, it can be overwhelming to make a rational decision. It is an ideal time you take advantage of shopping rebates, especially if you've been wanting to buy a large ticket purchase for a while. But did you know, you can also balance it out with an investing flavor that can work wonders for your money? Let's find out how.

Shop Or Invest? What’s the right option?

The holiday season is just around the corner, which means, expect to be submerged under advertisements for product discounts and shopping promotions. Perhaps you’ve been waiting to buy a new refrigerator in lace of the old one, or looking to install a new air conditioner to beat the heat. This is the ideal time to put your money to good use, shop on sales and offers and save money.

Shopping during Diwali can help you score good bargains, save money on items below MRP and make friends and family happy. Diwali is also a momentous occasion to start your stock market investment journey or relook at your financial plan to make smart investments. For instance, there's that Diwali bonus in your hand. What do you do with it? Before the impulse to spend takes over, read on to know how you can make the best of both worlds without regret.

Additional read: Looking to get rich? Here are insider secrets

How To Make Shopping Work For You This Diwali

While Diwali can help you save on big purchases, it's also an excellent time for retailers to compel you to spend more. To avoid spending money on items you don't need, let's look at how you can shop wisely this Diwali.

  • Set down a budget. Before you get excited about the upcoming Diwali discounts, take a good look at how much you can afford to spend. Getting a clear picture of what you need to buy and for whom can help you set down your holiday budget. With this budget, you can plan gift giving, food, decorations, attire and new purchases.
  • List what you want to purchase. With so many price reduction offers and promotions out there, anyone could be easily swayed to blow their budget. To make sure this does not happen to you, list down or brainstorm every item you need to purchase. Make a note of the people you have to buy for, what you want to buy for them, and the prices you see on the deals. Assign a rupee amount to every purchase and gift item.
  • Compare shopping prices. Look out for the best bargains on every product you wish to purchase. Also remember to keep an eye out for alternatives or substitutes to ensure you stay within your budget.
  • Make use of your reward points. To ensure that you don’t splurge on your credit card or take on new debt, look into your reward points. Use them to make up the bulk of your holiday shopping.
  • Look into your transactions. Keep checking your transactions and compare it with your budget as you shop. This can ensure that you stay on track. That's because sometimes it's not simply enough to only have a budget, you also need to stick to it. And also because shopping during festivities can add up so quickly, it's more crucial than ever to track your money in real time.

Now that you've racked up great purchases, made the list and stuck to your budget without breaking the bank, it's time to think about yourself. That's right, you've purchased gifts for friends and family, and so now, let's look at how you can make smart purchases for yourself through stock market investments.

Additional read: 9 ways to spend less and save more

How to invest wisely this Diwali

The Diwali bonus that you hold in your hand has the potential of growing into a sizable corpus with time. Even though the amount may appear little at the moment, with the right financial plan and proper management, you can take the opportunity of building wealth with it. Let's find out how.

  • Gold. Gold holds immense importance in the heart of every Indian family. You can begin your investment journey in precious metals either by buying bullion itself or investing in gold mutual funds, Sovereign Gold Bonds (SGBs) or Gold Exchange Traded Funds [ETFs]. Investing in the digital form of gold can help you park your money as well as provide you with a passive income. Besides, it eliminates the worry of gold purity, security and locker charges, making charges, theft and misuse. Also, unlike buying physical gold, you don't need a large sum of money to invest in digital gold. Through a SIP, you can accumulate gold safely and benefit from its rising value.
  • Mutual funds. Jumpstart your journey to wealth on the auspicious occasion of Diwali by investing in mutual funds. You can choose to invest the entire bonus as a lump-sum or begin a Systematic Investment Plan [SIP] to invest in an equity mutual fund scheme of your choice. Over the long term, it can demonstrate a strong capability of generating wealth for you.
  • Equities. For the longest time, people believed stocks trading required a considerable amount of money. However, with a Systematic Equity Plan [SEP], you now have the option of investing in the markets directly with a nominal amount. Direct stock market investments have historically proven to grow wealth for those investors choosing to stay invested for the long run. And so, putting that Diwali bonus to good use through stocks trading might be a profitable venture after all.

Additional read: Why you need to invest in gold this Diwali


Shop smartly and wisely this Diwali and make the best use of festival offers to buy what you need. It is also the perfect time to build your financial plan as Diwali is an auspicious occasion to invite Goddess Lakshmi and prosperity in your life. Choose from a wide range of investment options this Diwali to grow your wealth and build financial security for your future.

Disclaimer : ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. AMFI Regn. No.: ARN-0845. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.

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