20/12/2021
*6 financial lessons from Indian mythology*
Some of the most priced teachings of Ramayana and Mahabharat and beautifully integrated them into investment lessons.
*Lesson #1 - Avoid obsessing over schemes*
Raavan was obsessed with his powers, and in the quest of showcasing those, he abducted Sita. However, his obsession subsequently led to his destruction.
Obsessions can be harmful, yet investors tend to obsess over selecting schemes that will generate good returns. Instead, investors should first identify their goal and thereafter opt for a scheme that aligns with their investment philosophy.
*Lesson #2 – Don’t follow others blindly*
Duryodhan blindly followed Shakuni Mama but little did he know that it would lead him to devastation.
Following others blindly may keep investors away from their unique financial goals. If something has worked well for your friends/relatives it doesn’t mean it will work well for you as well. Investors should be mindful of their goals and should not follow others blindly.
*Lesson #3 - Say no to NFOs*
Duryodhan’s folly made him select Narayani Sena over Lord Krishna for the battle of Kurukshetra. He recklessly forgot the fact that nothing could outpower the supremacy of Lord Krishna.
In the financial space, investors typically get lured by NFOs and forget the importance of having a proven track record. Existing mutual funds with a good track record make a better choice for investing.
*Lesson #4 – Don’t put all your eggs in one basket*
Yudhishthira had bet all his wealth while playing Chausar and lost his entire fortune.
Something similar happens when it comes to investing. Certain investors tend to allocate a major chunk of their money in an apparently attractive avenue like bitcoin, etc. and put their funds at stake. This is where asset allocation and diversification becomes important.
*Lesson #5 - Stay away from timing the market*
Lord Krishna has advised Arjun, ‘Fal ki chinta naa kar karma kiye jaa.’
In financial parlance, karm symbolises investing. Investors should demonstrate discipline and continue to invest without timing the market. A disciplined approach reaps the fruits (fal) of investing.
*Lesson #6 - Don’t exit mid-way*
Due to the circumstances created by Ravaan, Lakshman had to leave Sita in search of Ram. Had Lakshman not left Sita, Ravaan would have not succeeded in his evil motive.
Taking this to the financial domain, we learn the importance of staying invested and not existing mid-way. Investors should continue with their investment journey and not get intimated by fluctuating NAVs or market noise.
