Feeds:
Posts
Comments

Posts Tagged ‘asset allo’

“Seek not greater wealth, but simpler pleasure; not higher fortune, but deeper felicity.”

It will be 100 years next year since the return of Mohandas Karamchand Gandhi from South Africa, and the start of the freedom movement in India. Whilst the story of his Experiments with Truth is well known, a lot of his principles have great value today in everyday life, and also when applied to your investment portfolio. Here are few of our favorites:

Faith & Patience: According to Gandhiji, one should have complete faith in himself in order to achieve something in life. Faith is also largely associated with patience. He famously said –  ‘If patience is worth anything, it must endure to the end of time. And a living faith will last in the midst of the blackest storm.’ For someone investing in equities, patience is the key. Stock markets are not a place where one should enter to make quick money, but should stay invested for the long term to get the best out of it.

Learning from your errors: “Freedom is not worth having if it does not include the freedom to make mistakes.” – M K Gandhi.So if you are doing something, in all possibility you will fail or make mistakes. But the beauty of mistakes is that we get to learn from them. While investing also you will make mistakes, you will take wrong decisions, but without getting discouraged about your past fallacies you should follow a properly laid down path of action and reach your goals. Seek professional help if necessary and learn from your mistakes.

Discipline: Discipline is a virtue which applies everywhere and in all streams. If you are following a disciplined investment strategy, you would not only be able to achieve your goals but also be able to experience what is called financial well being for you and your family.

Live as if you were to die tomorrow: We live in a world where everything is uncertain. Therefore, making provisions for unforeseen events is a necessity. Plan for contingencies, have a will, and always ensure that you have enough insurance so that you and your loved ones are not left in the lurch due to a serious illness or in your absence.

Live in the present: It is often observed that we ponder too much about our past losses and worry about our future. Trials and tribulations are a part of our lives. Instead of cursing your past and losing sleep over your future, you should invest for a better future by clearly articulating your goals and then working towards them, so that you lead a serene financial life.

Adhere to your values: There might be many instances when an investor is tempted by greed of short term returns or fear of the unknown. Targeted Asset Allocation should be the guiding light for all your investment related decisions as it is arrived at after optimizing an investor’s risk tolerance, goals and investment time frame.

Rebalancing is the Key: One of Gandhiji’s quotes goes – ‘It is Ego we cannot forgo. But what ego does is parts us from our own selves, our loved ones.’ It is a deviation from what we should be doing. Similarly, when our portfolio deviates from its original desired level of target asset allocation, we should make requisite changes. We should rebalance the portfolio at regular intervals and make it adhere to its values.

Some of these values and principles are applicable and guide us in all walks of life. Same is the case with Gandhiji’s principles, simple yet applicable to each and every thing. Follow these simple principles to lead a more efficient and fulfilling financial life.

Happiness is when what you think, what you say and what you do are in harmony.

 

 

 

Advertisements

Read Full Post »

%d bloggers like this: