Dhanteras, a significant day during the Diwali festival, is traditionally associated with buying gold and silver to usher in prosperity. However, as the financial landscape evolves, Dhanteras has become an opportunity for Indians to think beyond precious metals and invest in their financial future. The spirit of the festival can now extend to making intelligent, long-term investments aligned with life goals.
Investing decisions strongly depend on one’s age, financial responsibilities, and risk appetite. Here is a guide on how to invest during different life stages and how WealthBasket— an investment solution that curates baskets of stocks and ETFs—can help you make smart, diversified investments during this Dhanteras.
1. Early Career (20s to Early 30s): Aggressive Growth and Learning
For young professionals in their 20s and early 30s, time is your greatest asset. At this stage, you likely have fewer financial responsibilities and can take higher risks for potentially higher rewards. The focus should be on building wealth aggressively by leveraging equity markets and learning the ropes of investing.
Investment Strategy:
Equities and High-Risk Assets: Invest in stocks, equity mutual funds, and high-growth ETFs. This is the time to build a strong financial base by aiming for high returns over the long term.
Systematic Investment Plans (SIPs): If you are not sure where to start, setting up SIPs for mutual funds helps you benefit from rupee-cost averaging and build discipline.
WealthBasket offers curated growth-focused stock baskets for young and first-time investors, helping even beginners to diversify their investments without the need for in-depth market research.
2. Mid-Career (Mid-30s to 40s): Balancing Growth and Stability
As you progress in your career, financial responsibilities increase—such as buying a home, saving for your children’s education, or planning for retirement. At this stage, balancing growth with stability is important. Diversification is essential to reduce risks while still aiming for solid returns.
Investment Strategy:
Balanced Portfolio: Consider a mix of equity and debt instruments. While equities should still play a significant role in your portfolio, adding debt funds, bonds, or fixed deposits provides stability.
Goal-Based Investing: Set up separate investment plans for specific goals, such as your child’s education or a down payment on a house. This helps you stay focused on your long-term financial objectives.
For mid-career investors, WealthBasket offers multiple Evergreen WealthBaskets with tailored ETF mixes across asset classes, aligned with your risk tolerance. These goal-oriented portfolios strike the right balance between growth and risk management, helping you invest with purpose—whether for long-term wealth accumulation or specific life goals.
3. Pre-Retirement (50s to Early 60s): Conserving Wealth and Managing Risk
As retirement approaches, preserving the wealth you have accumulated becomes a priority. This phase requires a shift toward low-risk investments, but it’s also important to continue growing your savings to combat inflation. Your focus should be on stable, income-generating assets.
Investment Strategy:
Income-Producing Investments: Shift a larger portion of your portfolio into dividend-paying stocks, bonds, and fixed income investments. These provide regular income while reducing the risk of capital loss.
Equity Exposure: Reduce your exposure to high-risk assets, but don’t eliminate equities completely. A small portion in low-volatility, blue-chip stocks will help protect your portfolio from inflation.
For stable, long-term investments, consider WealthBaskets with a higher allocation to Bond ETFs for stability and lower volatility. While the equity portion may focus on Equity ETFs rather than dividend-paying stocks, adding Gold as a diversification tool helps create a balanced portfolio with reduced risk, giving you peace of mind as you approach retirement.
4. Retirement (60s and Beyond): Income Generation and Wealth Preservation
In retirement, your investment goals shift toward generating a steady income while preserving the wealth you have worked hard to build. At this stage, risk management becomes critical, and your focus should be on maintaining your lifestyle without taking on unnecessary financial risks.
Investment Strategy:
Dividend Stocks and Bonds: Invest in dividend-paying stocks, government bonds, and fixed deposits that provide a regular income stream.
Minimize High-Risk Investments: Keep equity exposure to a minimum, focusing instead on low-risk, stable investments.
Plan for Regular Withdrawals: Structure your portfolio in a way that allows for regular withdrawals while ensuring your funds last throughout your retirement.
By selecting diversified, asset-allocation WealthBaskets, retirees can achieve steady returns without the need for constant market monitoring.
Dhanteras is a time to celebrate prosperity, but it can also be a moment to start or enhance your investment journey. Whether you are at the beginning of your career, raising a family, preparing for retirement, or already enjoying it, WealthBasket helps you invest confidently by offering curated portfolios designed for every life stage.
So, this Dhanteras, consider making an investment that not only honours tradition but also sets the foundation for long-term financial growth—tailored to your unique life stage.
