Should You Start A SIP During Diwali? How A Rs 10,000 SIP Can Grow Into Rs 8 Lakh In 5 Years?

As the festival of Diwali, the festival of lights, is coming close, homes all over India are lit up with diyas, decorations, and festive cheer. Apart from the celebrations, sweets, and shopping, Diwali still has a deeper significance; it is a celebration of new beginnings, prosperity, and hope.

According to tradition, this is when people buy gold, start a new business, or make significant financial decisions. However, of all the investments with which one can begin during this period, the decision to start a Systematic Investment Plan (SIP) in mutual funds is undoubtedly the most fruitful and disciplined one.

A SIP enables you to invest a fixed amount at regular intervals, such as monthly, quarterly, or yearly in mutual funds. It is a way to increase your money without having to worry about the market because you do it steadily over time. You pay attention to the one thing, which is consistency, and the power of compounding takes care of the rest.

Thus, investing in an SIP on Diwali is not only in harmony with the spirit of new beginnings but is also an excellent way to ensure long-term financial growth and stability.

Why Diwali Is the Perfect Time to Start Your SIP?

Season of New Beginnings

Diwali is the celebration of light winning over darkness and good over evil. It is a celebration of new beginnings and of life shooting out fresh from the old. Right from the very first day of the new lunar month, Diwali festival follows a standard practice of the new and auspicious in every sphere of life.

"In a metaphorical sense, it's the best time to take positive and forward-looking steps. An SIP started at this moment is basically a financial fruitfulness seed put into the ground. By making a commitment to invest regularly, you automatically take a disciplined approach, which is quite similar to the festival's core value of light, stability, and growth also spreading to your financial life," said Abhishek Bhilwaria, CEO at Bhilwaria MF.
Festive Bonuses and Extra Savings

A lot of people get annual bonuses or festive incentives in the period leading up to Diwali. Of course, the most attractive thing to do with the whole amount is to spend it on gifts, travel, or festivities, but putting aside a part for an SIP can be very rewarding in the long run.

"Rather than allowing all of your festival expenses to be merely temporary, you can turn some of them into a source of wealth that keeps on growing long after the festival period.," said Abhishek Bhilwaria, CEO at Bhilwaria MF.

An Auspicious Start for Prosperity

The highlight of Diwali celebrations is Goddess Lakshmi, the goddess of wealth and prosperity. Initiating an SIP at this time is a gesture of inviting eternal abundance to one's life. By doing so, you are in harmony with the festival's essence not only asking for more short-term happiness but also ensuring stability and comfort for the family in the long run.

How SIPs Work: Simple and Powerful

SIPs are designed in a way that anyone could easily invest through them. As low as Rs 10,000 a month can be your starting point and you can continue with your regular investments. What counts the most here is the concept of compounding when the original amount of returns starts generating more returns thus multiplying the investor's wealth over a period of time.

Say, for example, you decide to initiate an Rs 10,000 SIP this Diwali (October 2025) and keep it until Diwali 2030. Thus, your total investment will be Rs 10,000 × 12 months × 5 years = Rs 6,00,000. The growth of mutual funds will decide the final value of your corpus:

At a 10% annualised return, the corpus can reach close to Rs 7,80,825 which means nearly Rs 1,80,825 are returns.

At a 12% annualised return, it could be as high as Rs 8,24,865 implying that the total gains would be approximately Rs 2,24,865 over and above the invested amount.

The figures are derived from standard SIP return equations and presume that the investments are made monthly falling under no withdrawals. The whole process of growth is compounding where the returns made every month are once again invested to create greater returns.

In addition to this, you get the advantage of rupee-cost averaging with SIPs, meaning you will be able to buy more units when the prices are low and fewer units when the prices are high; thus, the cost of the investment will be averaged over time.

A Diwali Full of Light for Your Finances

Diwali typically would mean more expenditure such as gifts, home décor, festive clothes, and celebrations, but it is also the right time to take a look at your financial habits and see what needs changing. As you clean and decorate your house for the festival, do not forget to use this time for sorting and strengthening your financial life.

"An SIP works in a way that it demands discipline from the investor and at the same time it makes sure that the investor is not taking impulsive financial decisions. Tracking the market daily is not your concern anymore since you have put in your regular investments and the power of compounding will do the rest," commented Abhishek Bhilwaria.

Your SIP, in time, will become a testament to your determination to be financially prosperous just like Diwali is a symbol of hope and renewal.

Summary

Why not light up your life with short-term pleasures this Diwali and, instead, take a step toward long-term financial stability? Carrying out an SIP venture is very convenient, unfettered, and efficacious, an up-to-date way of welcoming Goddess Lakshmi into your life. Besides bringing brightness to your home, let your investments illuminate your future.

It is Diwali; thus, it is the best time to initiate your SIP. The festival would be more than just light and celebration if it were also about enduring prosperity.

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