Home

Beyond Fireworks, Diwali's Connection to Money

10 Nov 2023

Investing 101
Goddess Lakshmi sitting around gold coins

There is a deep-rooted relationship between the festival of Diwali and money. In addition to the symbolism of Goddess Lakshmi, this is an auspicious time to start new ventures and buy new things, especially gold. Did you know you can buy digital gold? Read more and find out.

Copy Link

Table of contents

    Diwali, the festival of lights, is one of the most significant and eagerly awaited festivals. While it is a time of celebration, joy, and togetherness, it also holds a deep-rooted connection with money.

    Diwali is not just about illuminating homes and bursting fireworks; it is also a time to welcome Goddess Lakshmi, the deity of wealth and prosperity, into our homes. In fact, diya’s are placed on windows and doorways to light her way into the house. Her presence during Diwali signifies the arrival of good fortune and abundance. On this auspicious day, Goddess Lakshmi visits every home, showering blessings and prosperity to those who have kept their homes clean and lit. The symbolism here is clear - the cleaner and more organized our finances, the more likely we are to attract wealth and financial stability.

    These auspicious days are also opportune times to start new ventures, businesses, or investments. People also make large purchases during this time, particularly those that enhance productivity, such as cars, machinery, and electronics. The festival marks the beginning of a new financial year in the Hindu calendar, and it is believed that anything new initiated during this time will be successful and grow. The positive energy and festive spirit surrounding Diwali encourage people to take calculated risks and invest in their goals and dreams, both financially and personally.

    The tradition of buying gold during Diwali has been prevalent for centuries. Gold is a symbol of wealth and prosperity in Indian culture. It is also seen as a safe investment, a hedge against inflation, and a valuable asset that can be liquidated in times of need. During Diwali, people buy gold jewelry, coins, or even gold bars, believing it will bring them good luck and financial security.

    In the digital age, investing in gold has become more convenient than ever. One of the popular ways to invest in gold is through digital gold platforms. These platforms allow investors to buy, sell, and accumulate gold in digital form, eliminating the need for physical storage and ensuring security. By investing in digital gold, individuals can diversify their investment portfolio and benefit from the appreciation in gold prices over time.

    Gold Exchange Traded Funds

    Exchange-Traded Funds (ETFs) are an excellent way to invest in gold without the hassle of physical storage and the risk of theft or damage. In India, there are several reputable gold ETFs that investors can consider. Popular ones are offered by HDFC, SBI, Reliance and others.

    Gold Mutual Funds

    Investors can add gold to their portfolios by purchasing shares in mutual funds. These funds base their holdings on stocks of international gold mining companies and other assets exposed to the gold market, like gold ETFs. These mutual funds track the price of gold as the assets they own rise and fall in value. Popular ones include Invesco India Gold Fund, SBI Gold, Nippon India Gold Savings Fund and others.

    Other forms of digital gold

    There are a couple of other ways to buy digital gold. RBI launched sovereign gold bonds in 2015. They give you two advantages, price appreciation plus a 2.5% yield. And you also have Gold Futures Contracts. Gold futures are standardized contracts that trade on organized exchanges. They fall in the high-risk category of gold investing and are typically traded by mature investors.

    Diwali is a celebration that emphasizes the importance of financial well-being, smart investments, and the pursuit of prosperity. By understanding and embracing these principles, individuals can make the most out of the festive season, ensuring a prosperous and secure future. So, this Diwali, let's not only light up our homes but also illuminate our financial dreams, paving the way for a brighter and wealthier tomorrow.

    MyFi provides people with intelligent and unbiased financial advice. We find that people struggle with managing their finances, perhaps because they don’t have time, knowledge, or the inclination to dedicate to this. MyFi’s AI powered investment assistant does most of the work for you. It alerts you when things need your attention and assists you to make decisions that feel overwhelming. We are due to launch into the market soon. Get on our waitlist to participate in the pilot launch and take it for a test drive.


    Copy Link

    Related Posts

    Financial Plan

    Using Technology and Apps to Enhance Your Financial Planning Process

    10 Jun 2024

    3 min read

    Financial Plan

    Debunking Common Myths About Financial Planning

    05 Jun 2024

    2 min read

    Mutual Fund

    Mutual Funds vs. Stocks: Which Investment Option is Right for You?

    31 May 2024

    4 min read

    logoMyFi