Review Your Q3 Performance
The quarter from July to September has just ended, making this the ideal time to review how your investments have performed. Check the progress of your mutual fund SIPs, stocks, and any other assets. According to recent corporate earnings reports, sectors
like banking, IT, and automobiles have shown strong profitability, while consumption-focused areas have seen some weakness. This doesn't mean you should make sudden changes based on one quarter, but it does provide context. Look at your portfolio's overall growth and see if it aligns with the expectations you set for your long-term goals. A simple check-in now prevents bigger surprises later.
Create a Smart Festive Budget
With Dussehra, Diwali, and the wedding season approaching, expenses can quickly spiral. Before the festive sales and offers begin, create a detailed budget. List all anticipated costs: gifts, new clothes, home decor, travel, and celebrations. A common mistake is impulsive buying during sales just because an item is discounted. Plan your big-ticket purchases, like electronics or appliances, in advance and look for genuine deals rather than getting swayed by marketing. Creating a specific list and a spending limit prevents you from starting the new year with unnecessary debt. Remember, the goal is to celebrate without compromising your financial future.
Check the Latest Interest Rates
The government reviews interest rates for small savings schemes every quarter. For the October to December 2026 quarter, the Public Provident Fund (PPF) interest rate has been kept unchanged at 7.1%. While there's no increase, PPF remains a solid tax-saving instrument under the old tax regime due to its EEE (Exempt-Exempt-Exempt) status. Additionally, the Reserve Bank of India's monetary policy committee is meeting this month, with economists expecting a potential repo rate hike to manage inflation. A change in the repo rate can influence Fixed Deposit (FD) and loan interest rates, so it’s a key indicator to watch.
Assess Your Advance Tax Liability
While the third instalment of advance tax is due in December, October is an excellent time to get a preliminary estimate of your tax liability for the year. Collate your income from all sources—salary, freelance work, interest, and capital gains. Review the tax-saving investments you have made so far under sections like 80C (up to ₹1.5 lakh in instruments like PPF, ELSS, etc.) and 80D (health insurance premiums). If you find a significant shortfall in your tax-saving investments, you still have nearly six months to plan and invest without a last-minute rush in March. Early planning ensures you make thoughtful investment choices rather than just aiming to save tax.
Look Out for Sovereign Gold Bonds (SGBs)
Sovereign Gold Bonds, issued by the RBI on behalf of the Government of India, are a popular way to invest in gold digitally. They offer a 2.5% annual interest on the issue price and are exempt from capital gains tax if held until maturity (8 years). The RBI releases SGB tranches periodically throughout the year, and new issues are often announced around the festive season to meet demand. Keep an eye out for an announcement for the next SGB series. It offers a secure and tax-efficient way to add gold to your portfolio without the hassle of storing physical gold.
Update Your Financial Nominations
This is a simple but critical task that is often overlooked. Ensure that all your financial accounts—bank accounts, mutual funds, PPF, insurance policies, and your demat account—have an updated nominee. Life circumstances can change, and an outdated nomination can create significant difficulties for your family in the event of an unforeseen incident. Verifying these details takes very little time but provides immense peace of mind and ensures your assets are passed on smoothly to your loved ones without legal hurdles. Make it a habit to review your nominations at least once a year.
