How to make the new financial year as colourful as the festival of Holi

Use important lessons from Holi to diversify and manage your investment portfolio effectively this financial year

 How to make the new financial year as colourful as the festival of Holi

With the arrival of spring comes the festival of Holi. A festival of love, fertility, triumph and of course, colours. Holi is the day when we celebrate our differences and diversity by unleashing our inner child and indulging in good food, music and a riot of colours. 

As you enjoy the festivities this Holi, take time to soak in the important lessons from traditional reverence that could help make your financial future as triumphant as Holi.

Colour your portfolio

It’s the myriad colours that make the festival so unique and enjoyable. Just as we indulge in different colours, remember to apply the same lesson to your investments. As you design your portfolio, spread the investments across different asset classes, the period of maturity and returns. This would help diversify risk and optimise returns.

Related: How to diversify your portfolio like an expert?

Stay safe

As with any festival, it is important to take adequate precautions and play safe. Issues related to eye and skin are prevalent during Holi, and we should use only organic colours that are not hazardous to our health and nature. Similarly, we need to be cautious with our investments – understand the investment cycle well, do our due diligence, see how the investment aligns with our goals, speak to a professional if required and not hesitate to ask questions.

Related: How and when to de-risk one's investment portfolio 

Nurture the good, eliminate the bad

The festival is based on the legend of ‘Holika Dahan’ and the triumph of good over evil. We too want to achieve prosperity with our investments and weed out the non-performing ones. This can be achieved by enhancing our knowledge before investing, staying consistent with the plan, giving them time to fructify and not making hasty decisions.

Related: How to clean up your investment portfolio? 

Re-acquaint with your investments

Holi is the time to meet family and friends, share smiles and indulge in light banter. Festivals are a great excuse to maintain social bonds, and you need to do the same with your investments. Periodically take stock of the performance, see if the investments are aligned with your changing goals and are performing as expected. Nothing works well in isolation and the same goes for your investments. Your investment choices need to complement each other just like any other inter-personal relationship something that takes time and effort.

Relish the sweetness of your efforts

Holi is not just about colours; it’s also about the mouth-watering delicacies like gujiyas, papri-chaat, kachoris and the notorious thandaai! You need to prepare in advance and be careful to take in the right balance of sweet and savoury. Similarly, your investments will yield the best results if you give them time. Vagaries are part and parcel of life; you need to be patient and persistent with the investments for them to deliver results. Wealth creation is something that takes time. So, be patient to reap the benefits. 

How to make the new financial year as colourful as the festival of Hol


As you revel in the essence of Holi and the multi-hued festivities, do give these financial tips a thought. Get your investments in order, reward yourself by booking profits at the right time, try to achieve a balanced asset allocation, add or weed out non-performing investments, get your tax planning done and minimise debt.
Enjoy Holi in all its glory and welcome the new financial year with open arms. We wish your portfolio gives you the same joy and contentment as the festival of colours. Happy Holi!


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