Archive · 10 Oct 2026
Experts Weigh Mutual Funds, Gold and FDs for Festive Bonuses
A festive bonus is extra money, and experts say it is useful to decide what to do with it before spending it.
Mutual funds can be suitable for money that can stay invested for five years or longer, but their value can rise and fall.
Gold may help diversify investments, though its returns are not steady.
Fixed deposits offer more predictable returns and can suit expenses planned for a known date.
One expert suggested dividing money among mutual funds, gold and fixed deposits.
Other experts discussed large-cap or hybrid funds as possible choices.
People worried about market ups and downs could invest gradually over three to six months.
Before investing, experts also suggested checking debt, emergency savings and insurance needs.
Experts recommend matching a festive bonus investment to its purpose, time horizon and the investor’s risk appetite.
As of October 8, 2026, gold funds and ETFs had the highest reported three-year return, at 36.85%, while returns varied among equity fund categories.
Bank fixed-deposit rates listed as of October 7 ranged from 6.05% to 6.65%, depending on the bank and term.
Suggestions differ: one expert proposed a 60% mutual fund, 10% gold and 30% FD allocation, while others highlighted hybrid funds or large-cap funds.
Experts suggested considering high-interest debt, emergency savings and insurance needs before investing; mutual fund investments may be spread over three to six months.
- Who
- Employees expecting festive bonuses, and financial experts Uttam Agarwal, Manish P. Hingar and Harsh Vardhan Dawar.
- What
- Experts discussed investing festive bonus money in mutual funds, gold and fixed deposits.
- When
- Ahead of the 2026 festive season; the cited return and FD-rate data are dated October 8 and October 7, 2026, respectively.
- Where
- India.
- Why
- To help bonus recipients choose investments according to their goals, risk appetite and investment horizon.
Fund choices
Fund choices
Which mutual funds to consider
Fund choices
Harsh Vardhan Dawar said large-cap funds offered the best risk-reward ratio based on current valuations, and suggested floating-rate debt funds for investors unable to track rate changes.
Fund choices
Uttam Agarwal recommended considering balanced advantage and multi-asset allocation funds amid unpredictable markets; Manish P. Hingar also said multi-asset allocation funds could be considered.
How to invest amid volatility
Fund choices
Agarwal said investors with a five-year-or-longer horizon could consider mutual funds, but those concerned about volatility could spread investments over three to six months.
Fund choices
Hingar emphasized diversification, suggesting a mix of mutual funds, gold and FDs rather than placing the entire bonus in one option.
- Equity fund returns
- Year-to-date 2026 returns ranged from -10.04% for large-cap funds to +8.44% for small-cap funds, as of October 8.
- Gold returns
- Gold ETFs and funds recorded +11.33% year-to-date and +36.85% over three years, as of October 8, 2026.
- FD rates
- Listed bank rates for one-, three- and five-year deposits included rates from 6.05% to 6.65%, as of October 7, 2026; actual rates can vary.
- Suggested allocation
- Manish P. Hingar suggested 60% mutual funds, 10% gold and 30% fixed deposits, with the right mix depending on personal circumstances.
- Staggered investing
- Uttam Agarwal suggested spreading mutual fund investments over three to six months through an SIP or STP for investors concerned about volatility.
- Suggested horizons
- Agarwal suggested five years or more for equity and hybrid funds, and three to five years for gold ETFs as a diversifier.
- Preparation
- Hingar advised reviewing high-interest debt, emergency savings and insurance needs before investing.