To shop or to invest – What to do this festive season?

Come July-August and the flurry of festivals and cultural fanfare begins all over India. In the Indian calendar, there is always a major lull between April and July in our festivities. After the various New Year celebrations in April, we only have May Day as a public holiday. After which, the next set of public holidays begin only from July onwards. So it’s that time of the year again, when festivals and celebrations bring happiness and cheer to everyone.

This year the urge to celebrate and spread cheer is even stronger as the whole country is coming out of the shadows of the Covid pandemic. We were constrained from moving in large numbers or gathering in public places for 2 consecutive years. Now, it’s time to really break free and enjoy the festivities in their true glory.

However, with the festival season comes the added financial stress on our budgets. Festivals over the years have become synonymous with shopping. New clothes, household articles, new vehicles – you name it. Various brands and products are vying for the consumer’s attention, and we end up with a lot of new possessions. No doubt, it brings us great pleasure to see the joy on the faces of our family, especially elders and children. But do we really need all that we buy, or are we simply getting lured by the tempting offers and discounts?

Traditionally, festivals were celebrated in simple, beautiful & austere conditions with the entire extended family gathering together and having a lot of wholesome fun. There was a greater focus on the cultural and religious significance of each festival, too. But unfortunately today, a lot of the festivals are merely reduced to a shopping spree in our modern urban localities. Take, for example, an occasion like the month of ‘Ashada’ which is a solemn time of the year in the Hindu calendar meant for prayer and spiritual seeking. That’s the reason we avoid performing weddings in this month. However, in today’s world Ashada is synonymous with the ‘Ashada sale’ of sarees, jewellery and what not!

So what’s wrong with enjoying ourselves, shopping for the entire family? Nothing. Except, it brings very short term pleasure. And if done in measured limits, is perfectly acceptable and desirable too.

Now, let’s contrast this with directing some of our expense budget towards investment. Depending on our family or business needs in the short/medium term or long term, we can choose the appropriate investment mechanisms. The choice also depends on how much liquidity you prefer on your investment and your risk appetite.

Consider long term saving instruments like Government small savings like PPF or Sukanya Samruddhi Yojana for the welfare of your girl child. You may also look at equity markets in the form of Mutual Funds. Regular monthly investments into these instruments yield very healthy returns in the medium to long term.

You may also consider investing in Chit Funds for a fixed tenure of 2-3 years. We’ve stressed this point many times that Chit Funds make an attractive choice as a saving cum borrowing financial instrument. Invest in a Chit scheme which has a 2-3 year tenure. Choose the appropriate prize amount based on the monthly payable instalment that fits your budget and matches your financial goals. Anytime you need money, you can just withdraw the entire chit prize money. No questions asked, no interest, no penalty. Now just continue making your monthly payments as before, no additional liabilities just because you pulled out the money early. On the other hand, if you reach the end of the tenure without making a withdrawal, you will earn a very good return on your investment ranging from 7-9%.

Investments are also for the prosperity and welfare of your family. However, they require a small amount of financial discipline in our spending today in order to secure our tomorrow. And when the investments begin to bear fruit, it gives us immense financial security and stability. This brings us greater peace of mind and lasting happiness. Between short term pleasures through shopping and expenditure and long term financial security through – let’s strive to achieve a healthy balance. Season’s greetings everyone ! Have a great time!


Shanthala Chits has been in the business of chit funds for over 2 decades now. We are a Government approved chit fund company with a 25 year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka. We are one of the most popular chit fund houses based out of Bengaluru, known for our customer satisfaction and secure investments.

Our Chit schemes range from a monthly contribution of Rs 8000 to Rs 1,00,000 to suit every budget. You can pick a chit scheme with an appropriate monthly instalment for meeting several of your short-term financial needs. Our chit schemes are for a tenure of 25 Months. Get in touch with us and start with an investment scheme. We will be glad to help you out with the right scheme that matches your needs.

Anuradha C

Anuradha is a freelance writer cum corporate trainer in the IT/telecom domain with over 18 years experience. She served in senior technical and management positions in Huawei and TCS for 10+ years. Then gave up the traditional corporate ladder to go solo - in order to escape horrendous city traffic and to be at her own boss!
Anuradha C

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