Cleaning your home this Diwali? Your finances need clean-up too: 10 key checks on money, investments, insurance and more
Diwali cleaning is about decluttering homes, organising belongings, and getting rid of things you no longer need. The exercise should extend to your finances too.
Over time, people accumulate multiple bank accounts, mutual fund schemes, and insurance policies. Reviewing these can help reduce unnecessary costs, identify forgotten money, and keep investments organised.
Here are 10 financial checks to make this Diwali.
Check whether your bank accounts, fixed deposits, mutual funds, demat accounts, insurance policies, EPF and NPS accounts have updated nominees.
Review details after major life events, including marriage, childbirth or the death of a nominee. Ensure your family knows where important financial records are maintained.
Harsh Vardhan Dawar, ACA, CFA, FRM, Founder, Wealth Cafe, said investors should first review their allocation across large-cap, mid-cap, small-cap and sectoral funds, and then check the number of schemes within each category. If you hold two or three large-cap funds, consider reducing them to one.
Ajay Kumar Yadav, CFPCM, Group CEO & CIO, Wise Finserv said the first step is to pull your consolidated account statement from CAMS or KFintech. If two funds have more than 50–60% portfolio overlap, consider whether both are necessary.
Compare each fund's performance with its benchmark and category average over three to five years, rather than judging it by one year's returns. A fund that consistently underperforms its benchmark for three years deserves a review, particularly after a fund manager or strategy change.
As for buy, hold, or sell, that decision should flow from your goals, not the market's mood. Money needed within three years may be better suited to debt or hybrid funds, while long-term goals can accommodate equity exposure, he added.
Yadav said old accounts may have outdated KYC, contact details, or missing nominees, making it difficult for families to trace funds. Individuals can use RBI's UDGAM portal to search for forgotten deposits across banks.
Dawar said dormant bank accounts do not attract penalties for non-maintenance of minimum balance. Accounts become dormant after 24 months without customer-induced transactions.
Dawar said dormant demat accounts can attract annual maintenance charges (AMC) of ₹300-1,000 and reactivation fees.
Yadav said investors with smaller holdings can ask their depository participant to convert their account into a Basic Services Demat Account (BSDA), which has zero AMC for holdings up to ₹4 lakh and ₹100 annual charge for holdings between ₹4 lakh and ₹10 lakh.
Search for old FDs, forgotten savings deposits, unclaimed dividends and shares. For bank deposits, use the RBI's UDGAM portal to check whether you or a family member has unclaimed money lying with banks. For shares and dividends, check the IEPF website for shares or dividends transferred to the fund.
You can also check for unclaimed mutual fund investments. Search for old folios or unpaid redemption proceeds and dividends using the AMC's website or registrar platforms such as CAMS and KFintech.
Yadav suggested listing every policy, noting who is covered, the sum assured, premium, renewal date, and nominee. For life insurance, a common rule of thumb is a term cover of 10–15 times annual income, plus outstanding liabilities such as a home loan.
For health insurance, don't rely only on employer-provided cover, which ends when you leave the job and may be insufficient. Yadav added that overlap is not always bad in health insurance, as claims can be made under more than one policy. However, two small base policies may not be necessary; one adequate base plan with a super top-up can be better.
Shakti Shekhawat, Business Head, BharatLoan, said individuals should maintain a consolidated record of all liabilities, including personal loans, credit card dues and other outstanding payments, along with balances, repayment schedules and due dates.
Prioritise repayments based on the outstanding amount and borrowing cost. Clear high-cost debt first and avoid delays, as missed payments can affect your credit profile. Before taking on additional debt, assess your monthly income and essential expenses, he added.
Dawar said gold and silver should form 5–10% of your asset allocation. Avoid overexposure and treat jewellery as a personal asset rather than part of your investment portfolio. You can exchange damaged, outdated or unused jewellery for new pieces, though you will incur fresh making charges.
Yadav said such an exchange can make sense, but advised checking the costs and deductions carefully before proceeding.
Check UPI AutoPay, standing instructions, debit and credit card mandates and recurring subscriptions across OTT Apps and others. Cancel unused services and mandates to prevent unwanted deductions. Also update payment details linked to active bills and investments.
Yadav recommends maintaining six months of essential expenses, including EMIs, groceries, school fees, insurance and utilities. Those with irregular incomes, self-employed individuals, or sole earners should target nine to 12 months. Review the fund every Diwali as expenses change.
Dawar suggests keeping emergency savings in an online-accessible fixed deposit or liquid mutual fund.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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