Make your Investment Portfolio Colourful this Holi
Vibrant colors, mouth-watering delicacies and a wide-prevailing sense of camaraderie are a few images associated with the festival of colors, Holi. Originated in India as a harbinger of spring, this festival has attracted the attention of the western world with rich colors and enthusiasm that mark its celebrations. Holi symbolizes the triumph of good over evil and is observed as a festival of love, compassion and diversity. This festival brings communities together around the ‘Holika’ where each member prays for the safety of their loved ones and indulge in frolic by showering their friends and families with bright colors and water the next day.
Different regions in India observe different practices when it comes to Holi celebrations. This is primarily due to fact that each region upholds a distinct culture and set of beliefs which are unique to them. Though the way this festival is celebrated may vary, each legend associated with Holi has the same underlying message for us - follow the right path to assure victory. This spirit taught by Holi is vital to achieving success in every endeavor including financial planning. Observing various traditions associated with Holi can give valuable lessons to improve our lives and even achieve financial prosperity.
Welcome Spring; Welcome Prosperity
Holi is celebrated as the end of winter and arrival of spring. Spring, which is regarded as the season of new beginnings, is also marked with activity and hustle against the tardiness peculiar to winters. Just like the revelries and cheer of Holi bring us out of the slumber of winter, there is a need for us to initiate moment in our investment portfolio too to break through the stagnancy and address asset-mix imbalances. The activity of rebalancing becomes crucial to ensure that our investments are aligned with our investment goals. By liquidating outperforming assets and re-investing in underperforming investments, the overall health of investment portfolio can be improved to enjoy higher returns.
The pile of wood that we burn on the eve of Holi is symbolic of our inner weaknesses and evils. Only be getting rid of our inner negative tendencies can we create a positive life which brings us happiness and contentment. The same attitude, while making financial decisions, is the key to reap gains and make your portfolio work in a positive direction for you. Keeping a check on your investment tendencies such as leaning towards a particular asset class, making decisions based on friendly tips and spending without savings, should be done away with to build long-term wealth. Take this Holi as an opportunity to identify and rectify your unproductive investment tendencies to tap the positivity of investments done right.
Holi is synonymous with colors. Each color is unique and has a different connotation - red reflects love and fertility, blue is the color of Krishna, yellow denotes warmth and hope while green is the color for spring and new beginnings. These independent colors combine to give Holi the vibrant and joyous spirit that it has. Just like each color is important and has its own significance in the play of colors on Holi, each asset class has a defined role to play in making our investment portfolio balanced and strong. An asset class like equity is important for growth while options like debt and gold are also important for diversification. The asset allocation should be executed on the basis of your financial goals, age and risk profile. A portfolio which is balanced and has right exposure to different asset classes, can help you get closer to your financial goals within the timeframe stipulated by you.
Unity of Purpose
Holi as a festival cuts across religious and national barriers by doing away with social, cultural and religious differences. People from different cultural, social, religious and economic backgrounds come together to celebrate love and friendship on this day. The common intent of spreading joy and happiness unite people from diverse backgrounds to make this festival a true example of equality and brotherhood. Similarly, in financial planning, a common purpose can make all diverse investment options work in tandem for building long-term prosperity. Whether the defined goal is higher education, marriage, purchase of a home or retirement, a clarity of purpose brings about unity where the potential of different investment instruments can be tapped with an ideal asset mix to succeed in building financial well-being.
Holi is a festival which inspires us to forgive those who have done us wrong and revisit them to start the relationship on a fresh note. In the same spirit, if any asset class or any stock has caused you a loss in the past, you must revisit the option to check whether it would be prudent to now include that option in your portfolio. Most of us intend to avoid asset classes which have given us bad experiences in the past. By doing so, we tend to miss on the growth that the omitted asset class could add to our portfolio. So this Holi, re-evaluate asset classes/ investments that you have shunned in the past, look at their recent performance and then take a rational investment decision.
Spending time with family, gorging on delicious food and dancing to the beats of dhol revitalizes relationships and strengthen emotional bonds. These bonds must be cherished forever and should play the central role in planning your finances. While celebrating with your family, take out some time to discuss short-term and long-term financial aspirations of your family members. Such a discussion will enable you to set clear life goals and chalk out a plan for working towards the aspirations of each family member which will further deepen your love and connect.
With such deep social and cultural significances, Holi as a festival adds color and meaning to our lives. This Holi, let us aspire to imbibe the spirit of this festival in its actual sense. Let us ensure that this festival serves as a starting point to add various colors to our financial portfolio and overcome our negative tendencies to make our investments truly rich and vibrant.