Last Updated on April 26, 2026 by teamtfl
Every Diwali, Indian households spend thousands on diyas, sweets, clothes, and crackers. The bazaars are full. The credit card bills arrive in November.
And almost nobody sits down on Dhanteras to review their financial portfolio.
There is a beautiful contradiction in how we celebrate Diwali. We worship Goddess Laxmi – the goddess of wealth and prosperity – with elaborate rituals. We clean the house, light lamps, offer prayers. And then we spend aggressively on consumption, often on credit.
Laxmi, according to Hindu philosophy, does not stay where she is not respected. Where knowledge guides wealth, she stays. Where she is chased without wisdom, she moves on.
Quick Answer
The Hindu tradition of worshipping both Laxmi (wealth) and Saraswati (knowledge) together encodes a profound financial principle: wealth without financial knowledge is temporary. The festive season is the perfect time to ask not just “how much did I earn this year?” but “how wisely did I deploy it?” Dhanteras – the day specifically dedicated to wealth – is an ideal annual financial review date.
The Laxmi-Saraswati principle in personal finance
Sir John Templeton, one of the greatest investors of the 20th century, kept an owl on his desk – the symbol of Saraswati, goddess of wisdom. He believed that the pursuit of knowledge was inseparable from the creation of wealth. For him, the two were not just related – they were the same discipline.
In Indian philosophy, Laxmi and Saraswati are sisters. You cannot have one without the other for long. Wealth without knowledge leads to squandering. Knowledge without application leads to poverty of outcome.
Applied to modern personal finance: knowing that equity outperforms FDs over 20 years (Saraswati) but keeping everything in FDs out of fear is Saraswati without Laxmi. Earning a large income and spending it all on lifestyle without investing (Laxmi without Saraswati) is equally self-defeating.
The Diwali question worth asking: do you have both?
Where Indian household savings actually go – and what has changed
For decades, Indian household savings were dominated by physical assets – gold, real estate, and bank FDs. This pattern reflected cultural preferences for tangible, “safe” assets over market-linked instruments.
The picture has changed significantly in the 2020s. Mutual fund SIP registrations crossed 10 crore (100 million) active accounts by 2024. Monthly SIP inflows crossed Rs.25,000 crore. Direct equity participation through Demat accounts doubled post-COVID. The shift from physical to financial savings is underway – but it is far from complete.
Indian household financial savings breakdown (approximate, RBI data 2023-24):
- Bank deposits: Still the largest category, accounting for roughly 45 to 50% of financial savings
- Insurance funds: Approximately 20% – much of it in low-return endowment policies
- Provident and pension funds: Around 15%
- Mutual funds and equities: Growing share, now approximately 10 to 12%
- Small savings (PPF, NSC, post office): Remainder
The good news: equity is growing. The concern: insurance funds at 20% of savings still contain a large proportion of endowment and ULIP products that deliver 4 to 5% returns dressed up as “wealth creation.” That is Laxmi being worshipped with the wrong offering.
The Dhanteras financial review – what to actually do on the auspicious day
Dhanteras is considered the most auspicious day to buy gold and begin new financial initiatives. Instead of only buying gold, use the occasion as an annual financial check-in.
The Dhanteras checklist:
1. Net worth calculation. Total investable assets (EPF, PPF, mutual funds, FDs, NPS, stocks) minus all liabilities (home loan outstanding, personal loans, credit card balance). Write this number down. Compare to last year’s number. Did it grow?
2. Goal progress review. For each financial goal – retirement corpus, child’s education, home purchase – where are you vs the plan? Are you ahead, on track, or behind? If behind, what changes are needed?
3. Insurance audit. Is your term cover still adequate? If your income has risen or you have taken on more liabilities (a new home loan, for example), your term cover may need to increase. Is your health insurance cover keeping pace with medical inflation?
4. SIP step-up. If your income has grown this year, has your SIP increased proportionally? A salary hike of 15% with no increase in savings rate means lifestyle inflation is consuming the entire increment.
5. Portfolio rebalancing. Has a strong equity rally pushed your equity allocation above your target? Diwali – with its built-in spirit of fresh starts – is a good time to rebalance.
The gold question on Dhanteras
Buying gold on Dhanteras is a tradition most Indian families follow. Nothing wrong with it – gold has cultural and emotional significance that transcends its investment merit.
But keep it in perspective. Gold today trades at Rs.1,52,000 per 10 grams (April 2026). It has been on a strong run. Buying a small amount of gold jewellery on Dhanteras as tradition is perfectly fine. Shifting a large portion of your portfolio into gold because “it keeps going up” is the festive season’s version of chasing performance – and rarely ends well.
If you want gold as an investment, keep it to 5 to 10% of your investable portfolio. Choose Gold ETFs over physical gold for investment purposes – no making charges, no storage risk, easy to redeem.
Also read: Should You Invest in Gold Funds? How to Think About Gold Allocation
The real meaning of worshipping Laxmi
A colleague once told me something that stuck: “We pray to Laxmi to come to our homes. But we never ask whether our homes are ready to receive her.”
Laxmi comes to those who are prepared – who have a financial plan, who invest consistently, who do not squander income on impulse, who protect their family with adequate insurance, and who have the patience to let compounding work.
That is Saraswati guiding Laxmi. Knowledge directing wealth. The two goddesses, worshipped together, as they were meant to be.
Also read: Are You Financially Literate? The 5 Questions That Actually Test It
This Dhanteras, add a financial plan to your Diwali tradition
Buying gold is one tradition. Building a plan that ensures you never run out of money is a better one. RetireWise helps senior executives structure their retirement – so that Laxmi stays where she is properly welcomed.
Frequently asked questions
Is Dhanteras a good time to invest in gold?
Buying a small amount of gold on Dhanteras as cultural tradition is perfectly reasonable. As an investment decision, the timing should be driven by your current gold allocation relative to your target (5 to 10% of investable assets), not by the calendar. Gold at Rs.1.52 lakh per 10 grams in April 2026 is at historical highs – buying large quantities purely because of festive timing and recent price performance is performance-chasing, not investing.
What financial tasks should I complete before Diwali every year?
Use Dhanteras as an annual financial review date: calculate net worth, review goal progress, audit insurance coverage, step up SIP contributions if income has grown, and rebalance portfolio if equity has drifted above target allocation. This annual ritual – done consistently every Dhanteras – builds financial discipline that compounds as effectively as the investments themselves.
How are Indian household savings patterns changing?
Indian household savings are gradually shifting from physical assets (gold, real estate) and bank deposits toward financial assets including mutual funds and direct equity. Monthly SIP inflows crossed Rs.25,000 crore in 2024 and active SIP accounts crossed 10 crore. However, bank deposits still dominate at 45 to 50% of financial savings, and a significant portion of insurance savings remains in low-return endowment products. The shift is underway but far from complete.
Do you have a Dhanteras financial tradition – something you review or do every year around Diwali? Share in the comments – I am genuinely curious what rituals readers have built.
Hi Jayakumar
Major portion of your investment should be in equity and debt. Exposure to gold should not exceed 10%.
Dear sir,
I have read your article it’s so nice wealth without knowledge is not stay.
In this invest pattern why you ignored the Gold? Because gold has reached the all time high, Maximum indian investor are investing in the gold.
Hi Hemant
In India it is hard to dampen festive feel good. It is evident that even RBI’s interest rates heading north yet again have not dampened the mood too much. If Diwali rush for shopping is any indication, it is clear that Indian consumer is unfazed by the gloomy pictures which most TV commentators are trying their best to paint.Policy paralysis and governance dificit are trendy phrases to use, but not much more than that.
Growth in sales is the most reliable measure of growth in demand in India.Financial results from corporates tell us a much happier story of the Indian economy than official statistics which in any case are not very reliable. It is a pity that most TV commentators remain unfair to the Indian economy. They have failed to appreciate the acceleration in corporate sales. The sceptics do not see the impressive rise in two wheeler sales which are far more important than the decline in car sales. Indians have money and they are willing to spend.
Hi Hemant
I agree with you that very few Indian households own equities and a substantial portion of the savings is kept in debt instruments like bank fixed deposits. But this has been a blessing in disguise as the poor performance of the equity markets in recent times has not adversely affected too many people.
In contrast, a very substantial portion of Indian households invest in other asset classes like gold and residential property. Prices of these have zoomed in recent years. It would therefore be safe to assume that the wealth of Indian households has increased considerably in recent times when the markets have not given anything.
To All TFL Readers
Deepavali marks the victory of good over evil, light over darkness, knowledge and wisdom over ignorance.
This is why during this festival, people light ‘diyas’ and worship Goddess Lakshmi, to bring health, wealth, happiness and prosperity into their homes.
During this festival of lights, when you buy gold, new clothes, and sweets, and celebrate with firecrackers, remember to plan for your finances – gain financial knowledge and wisdom and achieve your life goals so you can have a peaceful and enjoyable Diwali every year!
Here’s wishing your family and you Deepavali ki Shubhkamnayein!
Thanks Anil.
Thank you Hemant ji,
Its been a pleasure to read your article, every one of it is a jewel.
Happy Diwali to you and your team and your family too.
May God bring all the blessing to you and your family, keep writing.
God Bless You.
Thanks & same 2 u.
Hi Hemant
For the last three years investments in equity mutual funds have not given anything to investors whereas investments in bank deposits have given from 8 to 10% returns. This is making even the die hard equity investors nervous. I would like to share the views of Value Research on the current situation.
Departures from the normal are sometimes hard to recognise, but for Indian mutual fund investors, they have become so widespread that they are now hard to ignore. At this point of time, here’s the situation in the major asset classes. Equity hasn’t really hasn’t done anything in more than three years and the only type of fund that has got investors excited for a long time are gold funds.
None of these things are supposed to happen. Take the simplest case, that of equity investments. It’s a cornerstone of investment planning that over longer periods of time, the risk of equity is minimal and likelihood of high returns is high.
When you step back and take a high-level view like this, then you could be forgiven for thinking that something is seriously wrong with what we thought was the normal. Perhaps something has changed fundamentally. Perhaps, as an investor, you now need to abandon what you thought were the basics of investing and look for a new set.
Everyone of these odd things is a departure from the mean and you should expect a strong reversion to the mean at some point. The current combination of strange happenings is little more than a curiosity that will fade away.
Hi Anil,
There is a great sense hidden in this lines – if someone can really understand “Everyone of these odd things is a departure from the mean and you should expect a strong reversion to the mean at some point.” And the late it is – more money will be made by sensible equity investors.
Great Article as always. I just want to take a moment and Wish you and the TFL community a Happy Diwali. Thanks for keeping this community alive and sharing views. Everyone is learning something new everyday and the good work must continue and benefit mankind.
Enjoy the festival and holidays with your family, friends and loved ones.
Thanks Mansoor 🙂
Hi Mansoor,
Eid mubarak