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Business News/ Money / Personal Finance/  Declutter your investment portfolio this Diwali; follow these 5 steps
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Declutter your investment portfolio this Diwali; follow these 5 steps

As Diwali ushers in a new beginning, it's an opportune time to evaluate your investment strategies and make necessary changes for a brighter financial future. Embrace the spirit of transformation and let go of outdated strategies to pave the way for future prosperity.

Declutter your investment portfolio this Diwali.Premium
Declutter your investment portfolio this Diwali.

As the festival of Diwali draws near, it provides a suitable opportunity for us to contemplate our belongings and the motivations behind them. Diwali, known as the festival of lights, represents the triumph of light over darkness, goodness over evil, and wisdom over ignorance. In the essence of self-reflection, let us scrutinize our possessions and ponder if they harmonize with our principles and ambitions.

The prioritization of evaluating investment portfolios is slowly eclipsing the emphasis on socializing and entertainment. After all, Diwali celebrations are synonymous with seeking blessings for wealth and prosperity. Instead of blindly accumulating investments based on rumours and a misguided understanding of personal finance, it would be highly beneficial to approach investments with the perspective of Diwali, which emphasizes the need for re-evaluation, tidying up, and decluttering your existing holdings to create room for what truly deserves a place in your portfolio.

The following simple steps will help you declutter both your home and portfolio in the long run. 

Identify cobweb-like investments 

What are those things lying under your bed or table or in cupboards? Do you need them? If those things have been lying down there for so many years, chances are that you will not need them in the future too. 

How many investments make up your portfolio? This should encompass all your stock investments, mutual funds, fixed deposits, and any other investment vehicles. If you’ve been investing for a few years, you’ve likely gathered a variety of investments. Take a close look at their returns to determine if they’ve contributed to your financial objectives. If they haven’t yielded the desired returns, it’s time to divest and declutter your already crowded portfolio.

Don’t let your money stay idle

You realize that you have extra money lying in your account that is losing value due to the effect of inflation. Cleaning up also implies making way for something new, which is why you must make space for new investments. If you are not sure of market-linked investment options, you may as well opt for high-yield traditional money-making opportunities like high-yield bank and post office deposits. 

Redraw your relationship with money

Diwali is all about seeking blessings for all-round prosperity. It has a deep relationship with money, which is why you must reassess your current relationship with money. Value what you have and aim to amass more by chalking out a viable plan for better returns. Nonetheless, investing doesn’t imply making random investments without a well-defined system or strategy in place. Check your risk profile before deciding which investments would do justice to your investment portfolio.

Reflect on the process you followed for your recent portfolio decision or stock purchase. Analyse the areas where you may have made errors and make a conscious effort to avoid repeating those mistakes in your future investments.

Pay attention to what your mind says

Festivities mean chaos and constant commotion. Marketing gimmicks underline most of our purchase decisions, which is why you must focus on what your mind says. Do not just invest in a huff; instead pay attention to the fundamentals. If you do not know how to deal with your finances, approach a financial advisor to benefit from his/her expertise and experience. When purchasing a saree or a shirt, we often take the time to research and find a reliable shop or website. Why not apply the same approach when making decisions about your future investments, be it stocks or mutual funds, or simple government-sponsored investment options?

Simplicity and minimalism

Do you appreciate simplicity and minimalism, aiming for an uncluttered environment? Or do you find yourself overwhelmed by your belongings, struggling to keep them in order? Aspire to maintain a straightforward portfolio; avoid accumulating an excess of investment options. Instead, select the finest ones and persist in investing in them.

Diwali presents a chance to clear not only our physical surroundings but also our thoughts. Releasing unnecessary belongings makes room for what genuinely holds value: meaningful connections, personal development, and a stronger alignment with our principles. The same principle applies to our financial investments. A harmonious connection with our possessions can be achieved only through prudent and thoughtful selection.

 

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Published: 09 Nov 2023, 02:39 PM IST
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