RANG BARSE...Investment Lessons from Holi!

From smearing each other with vibrant colours to relishing mouth-watering delicacies like gujia and thandai, Holi is all about unparalleled enthusiasm & joy.

While the festival is associated with the popular mythological tale of Bhakt Prahlad & his unwavering faith in Lord Vishnu, one can learn several investment lessons from Holi as well!

Get rid of Debt & Investment Biases:

Holika Dahan symbolizes the victory of good over evil. Despite being granted a boon from Brahma, Holika failed to fulfill the wish of her brother Hiranyakashyap & burn Prahlad.

As investors, one of the crucial lessons we can learn from this festival is to get rid of our investment biases. This is also an opportunity to eliminate another prominent evil that impacts our finances adversely- Debt.

Ignore market noise and remain calm in the midst of crisis:

Prahlad was subjected to severe atrocities & faced major hurdles. But he was neither affected by the evil conspiracies of his father nor did he deviate from the path of pure devotion.

The market is subjected to major upheavals which impact most investors. They either rush to grab hot stocks or sell fantastic investments at the wrong time.

As long-term investors, we should ignore market noise & stay calm like Prahlad at the time of crisis.

Remaining patient and focusing on our financial goals will help us achieve Financial Freedom!

Embrace the colours of Diversification:

The festival of Holi marks the onset of vibrant spring. In fact, the diversity of colours add to the zeal and makes the celebration even more enjoyable.

In terms of investment, it is important to diversify our portfolio. This minimizes risk & maximizes returns.

Play Safe to avoid hazards:

It’s essential to note that while some colours are natural, others may not be skin-friendly. Hence, we must take adequate precautions in this regard.

The same strategy should be followed while dealing with our finances as well. We should consider our financial goals, investment horizon, risk profile and other significant factors before investing in different asset classes.

Also, we must be cautious enough to refrain from investing in anything that we don’t understand.

Sort out differences & Rebalance:

This festival is all about forgetting past misunderstandings and differences, revisiting friends and relatives and starting everything afresh.

Similarly, we must revisit our portfolio at regular intervals to assess the performance of the different asset classes and rebalance whenever required to ensure overall financial well-being.

So, now that you are aware of the different investment lessons you can derive from this colourful festival, make sure you implement them to move closer to Financial Siddhi!

Wishing you all a Happy & HOLIstic financial journey!

Warm Regards,

Mohit Beriwala, CFA FRM