Embracing Paryushan: A Journey of Reflection

As we find ourselves amid Paryushan, a significant period in the Jain calendar, I am reminded of the values that have shaped not only my personal life but also my professional journey in investment management. Paryushan is more than a festival; it is a time for introspection, self-purification, and an opportunity to pause and realign our actions with our core values. With 25 years of experience in the investment world, I have come to appreciate how these principles resonate deeply within the complexities of equity markets and the pursuit of wealth creation.

Understanding Paryushan?

Paryushan, which translates to "abiding" or "coming together," spans eight days of profound significance for Jains. This festival culminates in the practice of forgiveness, a powerful reminder of the importance of compassion and empathy in our interactions with others. During this sacred time, participants engage in fasting, meditation, and prayer, seeking to enhance their spiritual well-being and foster unity. The overarching themes of compassion, non-violence (ahimsa), and self-discipline resonate deeply in today’s fast-paced world, serving as guiding principles for both personal conduct and professional practices. Last year, we incorporated the auspicious symbol of eight (八 ) in our Vallum logo to reflect the eight values as guiding principles, also known as Asthmangala.

As we reflect on Paryushan, it becomes evident that these themes have profound implications for how we engage in the world of finance. In a landscape characterized by rapid change and uncertainty, the principles celebrated during Paryushan can guide our decision-making processes, helping us navigate the complexities of equity investments with integrity and purpose.

Our Beliefs Influence the Investing Process

While my investment strategy does not strictly adhere to Jain principles, the core values of Jainism offer a philosophical lens through which we can evaluate our actions and decisions in the realm of investing.

- Ahimsa (Non-Violence): This principle invites us to consider the broader societal and environmental impacts of our investment choices. In an era where corporate social responsibility is increasingly important, reflecting on the ethical dimensions of our portfolios becomes paramount. We recognize that every financial decision can impact lives beyond the balance sheet.

- Satya (Truth): The commitment to truth underscores the importance of integrity in our financial dealings. As an experienced money manager, I believe that adaptability is vital. As the saying goes, "Money managers are not paid to forecast but to adapt." This philosophy emphasizes the need for transparency and honesty in our communications with clients. We choose to write in detail only once a year, rather than overwhelming you with excessive data every month or quarter. By being forthright about the risks and rewards of our investment strategies, we build a foundation of trust, which is essential for long-term relationships.

- Aparigraha (Non-Possessiveness): This principle challenges us to examine our motivations. Are we pursuing fleeting gains, or are we committed to sustainable growth? In the unpredictable landscape of equity markets, self-discipline is essential. A steadfast commitment to our investment strategies allows us to navigate market fluctuations with a level head. Our process, which combines both top-down and bottom-up approaches—or, as I like to say, viewing things upside-down—emphasizes meticulous scrutiny of earnings cycles and other variables while making investments.

Acknowledging the Journey...

In the dynamic world of equity investments, it is essential to recognize that no strategy is infallible. Markets are influenced by a myriad of factors—macroeconomic trends, geopolitical events, and the unpredictable behavior of market participants. Despite our rigorous research and analysis, there will inevitably be instances when investment decisions do not yield the desired outcomes.

As your investment manager, I view these moments of uncertainty not as failures but as invaluable opportunities for growth and learning. Each experience, whether positive or negative, deepens our understanding of market dynamics and enhances our ability to make informed decisions in the future. This perspective fosters a culture of humility and transparency, allowing us to engage in open conversations about our strategies and performance.

In this journey of investing, the path is just as important as the destination. This Paryushan, as we reflect on our actions, I extend my heartfelt appreciation to each of you. Your trust in my guidance is invaluable, and I am committed to honoring that trust by continually refining our investment strategies to better serve your interests. Michham Dukkadam — may we forgive each other for any inadvertent missteps along the way.

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Manish Bhandari, CIIA, founder of Vallum Capital Advisors, a Portfolio Management firm managing equity investments for Family Offices and HNIs, serves as a Board Member of the Association of Portfolio Managers in India. Based in Mumbai, he can be reached at [email protected].