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Key lessons
- Circle of competence: The first tale is about a race competition between Ganesh and his brother Karthikey. The competition was to circle the world thrice. Karthikey did so on a peacock (his vehicle), while, Ganesh, aware of the limitations of his enormous form and a smaller vehicle (the mouse), took a smart decision. He stayed back and walked around his parents – his universe, and won the race. Notably, both achieved their goal of orbiting the universe in their own way, highlighting their circle of competence. For illustration purposes only
- Lesson: Investors should identify their respective circle of competence while selecting the investment avenues. An assessment of the challenges (in terms of that circle) helps prioritise quantifiable goals to invest for. There is a famous quote, “everybody’s got a different circle of competence. The important thing is not how big the circle is. The important thing is staying inside the circle.” The cruciality of having a clear financial plan for any exigency cannot be overemphasised. Identify the relevant investment avenues and allocate your disposable income to different asset classes. Mutual funds are one of the ideal option to help achieve financial goals, as these invest across the spectrum, are professionally managed, lighter on the wallet, liquid, and tax-efficient. Once the investment avenue is chosen, it is important to stick to resources that are ethical, unbiased and relevant.
- Meekness: King Kuber, the Lord of wealth, was overpowered by his pride and ego. He decided to hold a feast to show off his wealth. Lord Shiva and Paravati, who realised his intentions, decided not to attend the feast and sent Ganesh instead. Ganesh, also known as the Lambodara or huge belly, visited Kuber’s feast and ate all the served food, forcing Kuber to ask for forgiveness for his pride.
- Lesson: This lesson of humility is important for investors, too. During a secular bull run, overconfident investors tend to get aggressive in the rally, ignoring their risk-return profile and horizon. The fact is that the market is cyclical; it goes up and comes down. A sharp downturn, or a bear market, can cause losses to investors and erode their portfolio wealth. That is why, investors should invest as per their profile and horizon through mutual funds in the capital market. Adopting the systematic investment plan (SIP) over the long term helps reduce the impact of market volatility, while helping to compound money over the long term.
- Mushak - the ride: Mushak, a mouse, is Ganesh’s vehicle – trustworthy and reliable.
- Lesson: Investors, who lack the wherewithal to manage their portfolio, can rely on a financial advisor. While doing independent research is important − and a must − investors can look at partnering with a financial advisor for guidance to help achieve their financial goals. An advisor should draw an investment plan to meet the investor’s objectives. Due diligence on the fund house and the financial advisor is suggested before taking a decision.
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