Author: Sheo Narayan - SEBI Registered Investment Adviser | Reg. No. INA000022844 | BSE Enlistment No. 2537 | IshaVasu.com

Every Deepawali, we clean every corner of our homes. We organise cupboards, remove unused items and make space for new beginnings.

Our financial records deserve the same attention.

Here are six simple financial-awareness checks worth considering this Deepawali.

1. Find Your Forgotten Financial Assets

An old salary account, an unclaimed mutual fund investment, an inactive PPF account or an old insurance policy can easily slip from memory.

Review your financial records, locate forgotten accounts and investments, update your details and maintain a consolidated record. Before closing or consolidating any account, understand the applicable rules, tax implications and other consequences.

2. Review Your Nominations

When did you last check the nominees recorded across your bank accounts, demat accounts, mutual funds, insurance policies and EPF?

Life events such as marriage, having children or losing a family member may make existing nominations outdated.

Review them periodically and understand that nomination and legal succession are not necessarily the same. Keep your family informed about where important financial records are maintained.

3. Give Your Festive Bonus a Financial Purpose

A festive bonus can bring excitement and the temptation to make a big purchase. Before spending it, take a moment to review:

  1. Is your emergency fund adequate?
  2. Are expensive credit card dues outstanding?
  3. Are important financial goals adequately funded?
  4. Do you have upcoming expenses that need attention?

Thoughtful spending and financial planning can go hand in hand.

4. Festive Gold: Understand What You Buy

Gold has cultural and emotional significance in many Indian households, especially around Dhanteras and Deepawali.

From a financial perspective, remember that gold is one asset class and should not be confused with a complete investment plan.

When purchasing jewellery, check the BIS hallmark and HUID, understand the purity, and review making charges and other applicable costs. Also distinguish jewellery purchases from gold held for investment purposes.

5. Muhurat Trading: A Tradition, Not an Investment Strategy

Many investors participate in Muhurat trading as part of the Deepawali tradition.

However, a festive trading session does not change the fundamentals of a business or remove market risk.

It may help to avoid making decisions based on excitement, rumours, social-media messages or unverified WhatsApp stock tips. Investment decisions deserve research, discipline and an understanding of risk.

6. Review Your Family's Financial Protection

Family responsibilities change over time. Children grow, parents age and financial commitments evolve.

Periodically review your term insurance and health insurance coverage. Consider existing cover, outstanding liabilities, dependants, medical needs and changes in family income.

Keeping policy details, nominee information and claim-related documents organised can also help family members when they need them.

A Final Reminder: Be Alert to Festive Financial Frauds

Be cautious of unsolicited investment offers, unrealistic guaranteed-return promises, unknown tipsters and pressure to transfer money quickly.

Never share passwords, OTPs or sensitive financial information with unknown persons. Verify an adviser's SEBI registration through official SEBI resources before engaging their services.

The spirit of Deepawali is about renewal and new beginnings. A little attention to our financial records, responsibilities and decisions can help us move towards a more organised financial life.

Wishing you and your family a happy, healthy and prosperous Deepawali! 🪔

Regulatory Disclaimer: Registration granted by SEBI, enlistment on BSE and certification from National Institute of Securities Markets (NISM) in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

This content is intended solely for general financial education and awareness. It does not constitute investment advice, a recommendation, an offer or solicitation to buy or sell any securities or financial products. Individual financial decisions should be based on one's own circumstances and applicable professional advice. | Sheo Narayan — SEBI Registered Investment Adviser | Reg. No. INA000022844 | BSE Enlistment No. 2537 | ishavasu.com