Diwali 2023: How should investors invest to create wealth for a bright future?

So let’s find out how you can significantly advance your financial objectives throughout this Diwali season and what your ideal investment plan should be.

According to personal finance experts, investors should focus on consistency of performance and risk-adjusted returns rather than just top performers. Proper asset allocation, diversification, and periodic rebalancing are important. Investing in equity funds over a long period is recommended.

“In general,investors follow the historical performance of a fund while considering investment in any fund. It should be filtered out as it does not help to see the performance in isolation. In the years to come, the top performers of last year may or may not deliver good returns. Consistency of performance, rather than top performance, should be taken into account by investors. Furthermore, it is necessary to take account of risk-adjusted returns instead of performance alone,” said Mukesh Kochar, National Head of Wealth at AUM Capital

If funds are to be identified in conjunction with the trend of the market, then values such as Standard Deviations, Sortation Ratio, Sharpe and Beta, etc. should be used, he added.

Proper asset allocation, with proper diversification and periodic rebalancing of the portfolio, must be maintained at all times. 

Kochar says that it is important to invest in equity funds over a long period and there should be little focus on 1 year’s returns from muhurat to muhurat. The main thing is that to avoid short-term volatility, you need to start building your portfolio soon and investing regularly for a longer period. 

Nifty 50 at 26,000 till 2025 Diwali

Vaibhav Kaushik, Research Analyst, GCL Broking believes that by Diwali 2025, the Nifty 50 index may go up to 24,000 levels,

“As we can see nifty has given less than a 5% return in the last 2 years. If we see The PE ratio of 1 year forward earnings of Nifty is trading near 18 levels which is on the lower side so from here in the next 2 years Nifty can give up to 35% return from these levels. Our target is 26,000 till 2025 Diwali,” said Kaushik. Sumeet Bagadia, Executive Director at Choice Broking believes that by Diwali 2024, the Nifty 50 index may go up to 24,000 levels

Diwali 2023: Top stock picks as suggested by Vaibhav Kaushik

Larsen and Toubro Ltd  TGT 4400

TCS TGT 5000

Kotak Bank TGT 2700

Tata Motors TGT 1000

IDFC First Bank TGT 177

Reliance TGT 3700

Piramal Enterprises Ltd TGT 2000

SRF ltd   TGT 4000

Diwali Muhurat Trading 2023: The stock markets (NSE and BSE) will open for an hour for Diwali Muhurat Trading on 12th November 2023 (Sunday). As per the notice by BSE and NSE, the symbolic trading session will be held between 6 pm and 7.15 pm. 

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 11 Nov 2023, 08:21 AM IST