Diwali, the Festival of Lights, holds profound cultural and spiritual significance, celebrated by millions across the globe. For both residents of India and Non-Resident Indians (NRIs), Diwali symbolises the triumph of light over darkness, knowledge over ignorance and prosperity over scarcity. Diwali also brings with it the tradition of investment; a time when families not only illuminate their homes but also invest in their prosperous future.
In this article, let’s explore how NRIs can align their financial goals this Diwali and investment opportunities available during this festive season that helps you build wealth!
Start with your NRI Bank Account
Diwali is a perfect occasion for NRIs to initiate steps toward managing and growing their financial assets in India, which can be done by opening a bank account, namely an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account. These accounts not only help NRIs manage their income seamlessly across borders, but also align them with the tradition of securing one’s finances during the festival of wealth and prosperity.
Opening an NRE account allows NRIs to deposit their foreign earnings in India. The funds from this account can be transferred back to your country of residence and the interest on this account is tax-free in India. On the other hand, an NRO account is used to receive the income NRIs earn within India like rental income, dividends, pensions, or other sources, and such income is taxed in India.
Also, an NRI account allows NRIs to invest in India, pay their bills and dues in India, and transfer money from and to Indian relatives. So whether you’re looking to grow your wealth or pay your expenses in India, having an NRE or NRO account is mandatory.
During Diwali, as we welcome new beginnings and the blessings of prosperity, setting up an NRI account can be an ideal step towards building a strong financial foundation in India. It empowers NRIs to earn, manage and spend their wealth across borders.
Creation of Wealth
Diwali, the festival of light and prosperity, is devoted to praying to Goddess Lakshmi, symbolising wealth and abundance. Traditionally, this is an auspicious time for fresh financial starts—families buy gold and jewellery as symbols of prosperity, while businesses open new accounts and ledgers to welcome good fortune.
For NRIs, Diwali is an ideal time to begin or expand investments in India across various asset classes. Equity mutual funds offer long-term growth potential, while debt securities provide stable returns. Fixed deposits continue to be a reliable choice of parking funds, and alternative investments like commercial real estate and micro-VC present opportunities to participate in India’s economic growth and startup ecosystem in a unique way.
Gift Money to your Loved Ones
NRIs across the globe embrace the Diwali tradition of sending gifts to loved ones back home, with money transfers often being the most meaningful way to extend their warmth and blessings. These monetary gifts go beyond simple transactions; they bring a sense of closeness, support, and joy to family and friends in India.
With various online options available, transferring money to India has never been easier or more convenient. Sending funds through reliable apps like SB NRI offers simplicity and speed, allowing NRIs to reach their family members without delay, no matter the distance. Whether you choose to send money online or offline, this adds a layer of joy and security to the celebrations, helping your loved ones make their Diwali brighter and more cheerful.
Buying Mutual Funds for Diwali as an NRI
Since Diwali is a great time to secure your financial well being and take action to build a better financial future, invest in the stock market this Diwali and put your wealth to work. If you do not have the time or knowledge to research and invest in stocks, investing in mutual funds or ETFs can be a great option for you. Here’s a wide variety of funds you can invest in on this Diwali:
- Equity Mutual Funds: Equity mutual funds primarily invest in stocks of companies across various sectors. They offer higher growth potential over the long term and can be a rewarding investment for those looking to invest for the long term.
- Debt Mutual Funds: Debt funds invest in fixed-income securities like bonds, government securities, and money market instruments. They offer stable returns with lower risk, making them a suitable option for conservative investors.
- Hybrid Mutual Funds: Hybrid funds balance their investments between equities and debt instruments to provide a mix of growth and stability. They reduce risk by diversifying across asset classes, offering a balanced approach for moderate risk-takers.
- Gold Mutual Funds: Gold mutual funds invest in gold-related assets, such as stocks of gold mining companies or Gold ETFs. They offer exposure to gold as a commodity in a convenient, paper-based form which is highly liquid, and helps with diversification.
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Wrapping Up
Diwali holds a significance value in the life of Indians worldwide, and it is the perfect time to take the blessings of Goddess Lakshmi, meet your loved ones, spend quality time with them and plan for your future. For NRIs, this festive season is a special heartfelt reminder of the culture of India, which is full of family values, faith, gratitude and wisdom. May this Diwali bring abundance, joy, and light into your homes and lives. Wishing you and your loved ones a radiant and blessed Diwali!
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
Frequently Asked Questions
Where should I invest my Diwali bonus?
You can invest your bonus in a variety of assets, such as stocks, gold and silver, bonds, real estate, government securities, and more. If you want to get great returns while bearing risk, you can invest in equity funds. If you are conservative, you can invest in debt funds. If you want to hold precious metals, you can invest in gold and silver funds. You can also buy multi-asset funds that enable you to buy a part of everything.
Can I invest on the day of Diwali?
Yes, you can invest on the day of Diwali. Muhurat Trading is a special window that allows traders and investors to invest in the stock market on the day of Diwali. This year, Muhurat trading is open on November 1 from 6 PM to 7 PM IST.
Is Diwali a good day to start investing?
Investing in your financial future is always good; however, investing on the day of Diwali is considered as highly auspicious from a traditional perspective. Therefore, if you are looking to start investing, Diwali is a great day to begin the same.
