Financial planning experts recommend harnessing the festive spirit to not only celebrate but also make smart investment choices that can ensure lasting wealth and stability.
In a recent note, Airtel Finance shared insights on balancing financial celebrations with responsible planning, offering various investment avenues to fit different risk appetites.
Instead of splurging entirely, Airtel Finance recommends allocating a fixed budget for celebrations and directing some resources toward a diversified portfolio.
Investment avenues to consider
Fixed Deposits (FDs)
Fixed deposits remain popular for cautious investors seeking predictable returns.
“FDs offer a steady income stream with minimal risk,” Airtel Finance noted.
While traditional FDs from banks typically yield between 6% to 7.5%, some non-banking financial companies have announced FDs with up to 9.5% interest rate.
The FD route offers a secure option for those prioritising stability and a fixed rate of return.
Gold vs digital gold
Gold has long been an auspicious investment choice in India.
Yet, owning physical gold carries storage and safety concerns. To address this, Airtel Finance highlights the rising popularity of digital gold.
Digital gold offers a convenient, secure alternative to physical bullion. Users can invest incrementally through EMI or UPI, enabling even small-budget investors to build their gold portfolios safely and without storage hassles.
Stock market investments
For those willing to accept more risk, the stock market offers potential for substantial returns, either through short-term trading or long-term growth.
“Retail investors have increased over 30% (CAGR) in the past three years, thanks to the ease of investing through apps like Kite, Upstox, and Angel One,” Airtel Finance noted.
These digital platforms provide real-time analysis, making it easier for investors to set stop losses and manage risks, ultimately limiting losses to 15-20% while maximising returns.
Airtel Finance suggests that understanding market trends and exercising patience are key to making the most of stock investments.
Health and life insurance
“Without proper health insurance, medical emergencies can quickly drain your savings,” Airtel Finance cautioned.
Health and life insurance act as protective investments, ensuring financial stability during health crises.
Beyond traditional insurers like Star Health and Max Bupa, Airtel Finance points to emerging insurtech platforms like Digit Insurance and Acko. These platforms offer simplified premium payments and coverage tailored to individual needs.
Plan for a secure festive season
As celebrations continue, Airtel Finance emphasises the importance of creating a thoughtful investment mix to ensure long-term financial security.
“Whether through FDs, stocks, gold, or insurance, building a well-rounded portfolio can provide lasting stability and prosperity,” Airtel Finance said.