Ramayana, penned by the sage Valmiki, is the most revered mythological text in India. The two most significant Hindu festivals in India – Dussehra and Diwali are rooted in this epic. Besides its religious significance, the Ramayana is also considered as a guide to navigating the complexities of life.
Incidentally, there are many lessons you can learn from this epic concerning personal finance.
As an equity investor, particularly in mutual funds, several useful inferences can be drawn from the Ramayana. Let’s consider the sacred scriptures and how we can apply it to our finances.
Cycles of the moon and the stock market
The Ramayana mentions Krishna Pakhsa and Shukla Pakshsa. These refer to the waxing and the waning phase of the moon respectively. The waxing phase of the moon is considered as auspicious, and the waning period is perceived as inauspicious.
You may ask, what is the parallel between the phases of the moon and the mutual fund industry?
Just like the moon, NAVs or Net Asset Values of mutual funds change almost every day. Why do these changes take place? The daily changes of a mutual fund’s NAV are indicative of the rise or dip in the assets of the specific scheme.
Basically, the mutual fund market equivalent of Shukla Paksha is the bullish phase; the Krishna Paksha is analogous to the bearish phase.
As a SIP investor in mutual funds, the takeaway is that market cycles must be viewed as necessary for overall healthy returns. Regardless of the mutual fund scheme, you select for your SIP investment, the daily changes in the NAV of the scheme must be accepted as part of the sip mutual fund’s growth.
You can benefit from both phases, thanks to the rupee cost averaging power of SIPs. This means you can buy more mutual fund units when the market is on a low and sell those units for a profit when markets brighten up.
Experts as your personal Hanuman
If you are familiar with how the Ramayana pans out, you would know that Hanuman played a pivotal role in Lord Ram’s victory against Ravana.
Be it donning the role of a healer and tending to Lakshman’s injuries or gathering a battalion of monkey warriors – Hanuman was a force to reckon with.
Similarly, based on your profile, risk appetite and objectives, you would have invested in specific mutual funds to meet your goals. These funds are governed by able experts, proficient in their fields and knowledgeable analysts with proven success in steering the success of the mutual fund. If you need guidance to help you invest in mutual funds or know how to invest in sip, you could take the services of a financial expert to know what is a mutual fund and assist you in making informed choices.
Your financial advisor and fund managers of the funds you’ve invested in play a crucial role in determining your financial success. Akin to your personal Hanuman, they can be your guide in helping you navigate market turbulences and understand the complexities of the market. While your asset manager has the power to transform the health of your personal finances, your financial advisor can help review the progress of your mutual fund investment and recommend timely suggestions to meet your goals – just as Hanuman paved the way for Ram’s victory.
The battle between Ram and Lord Ravana is considered to be symbolic of the defeat of evil forces. After safely returning to Ayodhya with Sita, Lord Rama was coronated as the King of Ayodhya. Those dealing with financial problems can take a cue from this and start afresh with a suitable investment plan. After all, healthy finances can be crucial in tackling many practical issues. Also, your patience and hard work can usher in the Shukla Paksha phase on your finances.