Thread by @SquareoffIn

5 Key Investment Lessons From Ramayana

Our elders often use stories and incidents from Ramayana to show us the right path in life. But epic Ramayana can be equally valuable in learning lessons on #investment and financial planning.

#squareoffthreads 👇

1/15

Everything That Shines Is Not Gold

Ram chased the golden deer & Laxman also went out. But before leaving Sita in jungle, Lakshman drew a line and requested Sita not to cross that line. But then Ravan arrived as a saint trapped Sita to cross the line, and kidnapped her.

2/15

The lesson here is not to chase anything and everything that looks attractive. Today many investors are getting lured into #investing in direct stocks based on hot tips cryptocurrencies, covered bonds, and so on that promise them the moon.

3/15

So, you need to draw your ‘Laxman Rekha’ and ensure that you are not betting your house on any financial products that promise you unreasonable returns.

4/15

Take Small Steps With SIP To Build Huge Ram Setu

Ram could have taken the shortcut of using his Brahmastra to dry up the ocean. But he was patient and respectful to nature. So after much deliberation, he decided to build a bridge with small rocks and stones.

5/15

The lesson here is that even with the combination of tiny little things, you can achieve extraordinary things. These small little magical things are SIPs that can help you reach your destination. But you have to be patient and keep investing regularly.

6/15

For instance, if you had started a monthly SIP of Rs. 10,000 in NIFTY 50 in January 2006 and continued it for the last 15 years, you would have accumulated a whopping Rs. 47.5 lakh at an average annual return of 11.5%.

7/15

Lord Ram was a great warrior. Yet, he knew that to win against an opponent like Ravan, he needed an army. He realized that he could not do it alone. A strong army was his only chance to succeed, and he created one with the help of Sugriva and Hanuman.

8/15

When it comes to your portfolio, you need an army too. Don’t just rely on your savings and fixed deposits for a worry-free financial future. An army of a well-diversified portfolio, spread across asset classes, is the mantra to succeed in investing too.

9/15

As the table shows, in the last 10 years, different asset classes have emerged as winners in different years. Gold has topped the chart in 5 years, equity topped in 3 years and debt in 2 years. Hence asset allocation is critical to long-term wealth creation.

10/15

If You Cannot Pick Sanjeevani, Take The Entire Hill

Lakshman was wounded in a battle. Hanuman had to bring plant called Sanjeevani from the hill in the Himalayas. But, when Hanuman couldn't know Sanjeevani. So, he fly away with the entire Gandhamardan hill along with him.

11/15

Picking that one multi-bagger stock to build your wealth can be a challenging task. So you can invest in an Index Mutual Fund that reduces the risk of picking the wrong stocks. Because when you invest in an Index Fund, you own all the stocks that comprise an index.

12/15

Don’t Let Your Ego Destroy Your Future

Ravan was one of the most learned scholars to have ever lived. But all his talents were overshadowed by his ego and arrogance, which caused his downfall. we all become adamant like Ravan and hold on to some assets

13/15

In a way, we let our ego get the better of our intelligence, instead we need to accept our mistakes and get rid of loss-making investments as soon as possible.

14/15

Bottom line

Not falling prey to greed, taking small steps to achieve, diversify across asset classes, keep it simple, accept your mistakes as soon as possible. Ramayana perhaps imparts all the essential investment lessons that one can think of.

Shared by ET Money

15/15