Those planning to invest during the Muhurat trade today are looking forward to adding value stocks to their portfolio for a long-term investment. Muhurat trading refers to a special trading session that takes place on the evening of Diwali. This trading session typically lasts an hour and is considered auspicious.
It is believed that trading during this time can bring luck and prosperity. The session usually takes place outside market hours on the day of Diwali and is marked by greater participation from retail investors.
“Muhurat plays an important role for Indians as we believe that whatever good things we start or do on Muhurat will grow and prosper in the future. Investors have the same belief in stock market investments,” said Preeti Zende, Founder, Apna Dhan Financial Services . .
As we know, you need a demat account to invest in stocks. And investors who do not have a demat account can still invest in stock markets through mutual funds.
These are the steps you need to follow to buy mutual fund units:
I. Visit the investment fund’s website. Enter your login to enter.
II. After you have logged in, you can click on ‘transact’. A drop-down menu will open with lump sum/SIP options.
III. You can choose the scheme in which you have already invested. Otherwise, you can add a new plan to invest in.
IV. Once you have chosen the new scheme, you will need to choose the category (equities, debt, index, fund of funds, hybrid liquids, overnight, etc.) and the scheme.
V. Enter the amount to invest. There must be a minimum investment of ₹5,000 for a lump sum investment or ₹100 in case of SIP. Don’t forget to choose the number of SIPs.
However, it is worth mentioning that Muhurat trading is for buying stocks and gold and not necessarily mutual funds.
“The Muhurat Trading is essentially for buying stocks, gold and ETFs, not mutual funds. Investors attach a lot of sentimental value to this special time. There are emotional reasons to buy shares during this period. This is the time to worship Goddess Lakshmi. About 80 percent of the time, trading during this period is positive for buyers,” said Sridharan S, a Sebi registered investment advisor and founder of Wealth Ladder Direct.
Those who do not want to take the risk of investing in equities can get exposure to gold ETFs or Nifty 50 ETFs through the fund-of-funds (FOFs) route, Zende explains.
“Most investors buy direct shares within an hour on Laxmipujan day, but those who do not want to take direct equity investment risk can also buy MF units. For custom, one can invest in the MF, but units are credited according to the scheduled days (T+2). So if the intention is to buy on the same day and avoid direct equities, one can invest in Gold ETF or Nifty 50 ETF (through a fund of funds),” she says.
