Investment mantra: Inculcate these 4 Gandhian principles in volatile times

The biggest humanitarian crisis of modern times has forced us to alter our ways of living and has taken a toll on our overall well-being including investments.

With broader indices spiralling down due to surging cases of COVID and other geopolitical factors, investors have had to get back to the drawing board and rejig their strategies.

In such challenging times, nothing can be more comforting than a helping hand from none other than the Father of Nation, Mahatma Gandhi.

Gandhiji’s principles have stood the test of time imbibing which can help you ride choppy waters with ease. So what are these? Let’s find out.

Adopt a Long-Term Perspective

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Rahul Jain

EVP|Edelweiss Wealth Management

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The road to Indian Independence when Gandhiji entered into the fray was a long-drawn one filled with bumps and challenges all the way.

However, he launched his freedom movement with a long-term perspective with full confidence in his ideas and beliefs and never lost sight of the big picture even amidst several setbacks.

The same goes for investments, particularly related to the stock markets. While markets are volatile now with both the Sensex and Nifty recording blips, if you have invested in fundamentally sound stocks, remain committed.

Your perseverance now will reap rewards in the long-term and enhance your riches.

Avoid kneejerk reactions following short-term volatility. Instead of fretting, use the opportunity to add quality stocks available at attractive valuations in your portfolio.

Reach Out to Everyone

Bapu knew very well the importance of working with everyone, even those who didn’t believe in his principles and philosophies for a common cause.

He knew the motive behind the British policy of ‘Divide and Rule’ and tried reaching out to every section of society.

In the investment parlance, reaching out to everyone is akin to diversifying. Spread your investments across asset classes to reach your goals.

Along with investing in market-linked products, also invest in fixed-return instruments to hedge your risks.

At a time when stock markets are plunging, fixed-return instruments prevent a dip in the corpus and accumulated gains.

Maintain Self-Discipline

Bapu was an epitome of self-discipline and simplicity. He practiced what he preached, had meagre possessions and led a disciplined life.

This principle holds immense importance, particularly during testing times and black swan events that we are witnessing now.

Maintain self-discipline when it comes to spending and focus exclusively on your needs. Keeping wants in the backburner can ease financial stress levels and help you sail through the crisis.

Mind the Future

Gandhiji famously said, “the future depends on what you do today.” Indeed, your actions today will define your future tomorrow. In a bid to enjoy their present, most people lose the big picture and fail to take into account their future needs.

For instance, it’s a common practice to defer retirement planning and postpone it for a later date. With the days of pre-defined pension benefit all but over, procrastinating this all-important goal can expose you to the spectre of old-age poverty.

Being an early bird not only allows you to be more flexible with your investments but also brings in the power of compounding that has a multiplier effect on wealth.

On similar lines, make sure you have adequate health and life insurance policy that safeguards your finances and the future of your dependents against contingencies.

In Conclusion

As evident, the above-mentioned Gandhian principles help you achieve address crucial life goals and overcome challenges with the utmost ease. On the birth anniversary of the Bapu, let’s pledge to inculcate Bapu’s principles in life and finances for a better tomorrow.

(Rahul Jain is Head Edelweiss Wealth Management)

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.