Icon times
Where Should You Invest Your Diwali Bonus? 4 Ways to Invest the Bonus Amount?

Where Should You Invest Your Diwali Bonus? 4 Ways to Invest the Bonus Amount?

Published on 28 October 2022 .Views 34 .Comments 0
Share On
In this article, we will be discussing how could an individual optimally utilize their Diwali bonus. So, let’s get started!

4 Ways to Invest in Diwali Bonus?

1) Check Emergency Fund:

  • Primarily, if an individual has received a lump sum bonus amount then he/she should check the status of their emergency fund- is it adequate or not?
  • As a thumb rule, a salaried person should have an emergency fund of the amount equivalent to total expenses of 6 months including EMIs and rent. And, the period extends to 12 months in case a person is a businessman.
  • If the emergency fund is currently not adequate, then the bonus amount should be utilized for the maintenance of the emergency fund.

2) Buy Term & Health Insurance:

  • If the emergency fund is adequate, then one should wisely check their risk planning status i.e., insurance.
  • If a person has already taken any insurance, then one should check if the current cover is enough, or if he/she needs to upgrade the insurance cover then the person should utilize the required amount from the bonus for this issue.

3) Invest as per Asset Allocation:

  • If emergency funds and insurance are properly maintained and covered, then one needs to check on his/her asset allocation and whether the current asset allocation is properly meeting the financial goals.
  • If financial goals are met then one needs not to worry about it, but if it is not then one should utilize the bonus amount in meeting the deficiency of proper asset allocation.

4) Staggered Way of Investing:

  • If one is opting for equity investment, then one should opt for a staggered manner of investing. One should avoid investing a lump sum in the market amid the current volatile market conditions.

What Should Investors Do?

All the above-discussed factors are some of the important pointers one needs to check on regarding his/her bonus amount. Also, one should follow due diligence before making investment decisions and should follow a financial advisor for proper financial planning.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.

Originally Published On:https://blog.investyadnya.in/where-should-you-invest-your-diwali-bonus-4-ways-to-invest-the-bonus-amount/

private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs. 11,999.00/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

Recently Uploaded

premium Premium
free Free
Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
Chat with InvestYadnya