5 Key Investment Lessons From Lord Ram This Ram Navami
By Akhil Chugh
Date April 10, 2022
“Humans think in stories rather than in facts, numbers, or equations, and the simpler the story, the better.” Yuval Noah Harari
Ram Navami is celebrated across India to mark the birth of Lord Ram. Lord Ram is idolized as he was the living embodiment of the principles he epitomised. Through his life story, there are several investing lessons that we can learn about how to manage our finances and be better investors.
1. Lakshman Rekha: Be a Disciplined Investor
Discipline is an essential lesson to learn from the episodes of Lord Rama’s story. Just like Ram’s brother Lakshman drew a line (Lakshman Rekha) to protect Goddess Sita, every investor should ideally set a Rekha – ‘the budget’ to manage the expenses ensuring financial stability in the long run. One must estimate how much expenses should be incurred and how much savings are essential. If one fails to adhere to a set budget he may drown in financial debt during difficult times.
So, set a monthly budget for yourself listing down all the sources of income, invest a part of your income via SIP in mutual funds based on your investment goals and horizon and then spend the remaining amount of income.
2. Be Prepared: Invest in Emergency Fund
Life is very unpredictable as was evident in the last two years of lockdown period due to the outbreak of Covid. Nobody can predict what life has planned for anyone. Even, Lord Rama was given 14 years of stubborn exile when he was preparing for his Raj tilak to be the king of Ayodhya. For unforeseen situations like these one must always have an emergency fund in hand. Emergency fund can help people sail through such tough times.
Having a sufficient amount of emergency corpus can make the difference between muddling through a crisis or falling off a cliff. No matter how much is your salary or monthly EMIs, keeping 5-10% of it in an emergency fund – preferably in liquid and safe investments such as liquid mutual funds can make a difference in times of crisis. Investors should make it a resolution to have money saved in an emergency fund – 3x monthly income is a good start, 6x Is ideal and 12x would be good to have.
3. Ram Setu: Reaching the destination Brick by Brick
Lord Ram achieved an insurmountable goal of reaching another island across the ocean, without any modern-day technology by little efforts made by countless volunteers. Every little brick put by the members of vanar sena ultimately became the Ram Setu bridge that connected them to Lanka thus paving way for Ram to cross the ocean and get Goddess Sita back by defeating Ravana.
Likewise, in investing journey if you discipline yourself to invest even a certain amount every month, with the magic of compounding, it can eventually snowball into a good amount of wealth.
To reap the full benefits of compounding, investors must inculcate an investing discipline to ensure that investments meet the desired goal. Consistency and investing with defined objectives are the key to successful returns. Investments made uniformly can help wealth grow at an exponential rate.
4. Keep Your Balance- Patience is Quintessential:
In the course of his eventful life, Lord Ram has to go through a series of adverse situations like 14 years of exile, the kidnapping of his wife, war with Ravana etc. But Lord Rama never gave up and lost his balance. He sailed through the most difficult time with his patience.
Similarly, Patience is one of the most important ingredients of wealth creation. Don’t lose your patience during the bearish market and get enticed into making pre-mature withdrawals to jeopardize your fund’s growth potential. Instead of quick returns, you must focus on giving ample time to your investment so that they can grow into substantial wealth, with the help of the power of compounding.
5. Find Your Agastya: Seek Assistance from Professionals
Rishi Agastya was Lord Ram’s Guru during exile who guided Lord Ram on how to destruct the evil forces. He played the most vital role in Shri Ram’s victory over Ravana as a guru, guide and mentor who strongly supported the mission of Shri Ram in the protection of Dharma which was the life motto of the noble revered sage.
Similarly, for an investor, it is very important to seek the consultation of a professional & unbiased financial expert to help you in your financial planning and investments. With the growing complexities of financial markets and a plethora of funds available in the market from balanced mutual funds to multi-cap mutual funds, at Net Brokers, we highly recommend taking help from our team of financial experts, who can chalk out the right investment plan for you based on your goals and risk appetite.
Staying focused, taking small steps to achieve big goals, importance of diversifying your investments across asset classes, keeping it simple and the list goes on. Lord Ram’s life imparts all the essential investment lessons that one can think of.
For any financial planning assistance, get in touch with us today! Download our mutual fund app & start investing for your long-term financial goals.
Happy investing!