In Indian culture, festivals play a more significant role than you can even imagine. There was a time when every day was a festival. However, every festival has different cultural and religious significance but every festival is the passageway to the most profound aspects of life. It is a way to bring enthusiasm and exuberance in our lives. Every festival whether it is religious, national, or seasonal, holds a lesson of wisdom that we all must perceive and implement in our lives.
Today, we’re here to talk about another auspicious festival i.e. Holi. It is a festival of colours that is celebrated with great joy in different parts of our country. As we all are familiar with the story of Prahalad triumph over evil Hiranyakashyap and burning of Holika, the festival symbolizes the win of good over evil. Similar to other festivals, ‘Holi’ also holds great importance in Indian mythology and gives us a lot of wisdom lessons if perceives, bring great happiness in our lives.
Here, we’re going to reveal some special secrets of Holi festival that can benefit the investors within their investments and paint their lives with colours, joy, happiness, and wealth that they can build over these investment secrets.
Investment Lessons to Learn from Holi
Let’s see what those secrets are –
Add Colors of Diversification within your Investment Portfolio
What would you say to, if we tell you to play Holi with one colour either red or green? It would be boring right. TOTALLY INSIPID! Well, if you ask the same question to anyone, the response would be the same. It is because ‘Holi’ is the festival of colours. Similar to this, the colours of diversification should be added within your investment portfolio.
Volatility within the stock prices will always be there. It is the nature of the stock market. The only thing we can do to protect our returns from this immense volatility is to diversify our investment portfolio by investing in multiple stocks to average out the profits and losses.
The way the multitude of colours enhances the Holi celebration, similar to this, the diversification enhances the returns over time while managing the risk of bearing losses.
Make Time to Review Your Investment Portfolio
‘Holi’ is one of the festivals that bring loved ones – families, friends etc. all together. It is the auspicious day when people make time from their hectic schedules to meet and spend time with their closed ones. In short, we can say that it is the day of the year when we all reconnect and celebrate togetherness. Similar to this, when it comes to long-term stock investments, we simply buy the shares and forget. Instead, we make some time out to review our investment portfolio and check if it requires some rebalancing or not.
Re-examine the portfolio for stocks gives you the hint on the list of stocks that are underperforming and dragging your investment portfolio down. It is time to review those stocks and make decisions that benefit your long-term investment objectives. Check to see if the asset allocation is still aligned with your financial goals or not.
Like in Indian mythology, the evil Holika burnt while the devotee son Prahalad lived. Reviewing your portfolio will allow you to get rid of evil stocks that are a barrier in your life goals and continue with the stocks that are putting value to your investment portfolio.
Enjoy the Sweetness of your Hardwork
The sweets that are prepared for Holi festival are usually homemade, which require a lot of hard work, time, and patience. Similar to this, the stock investments that we made must enjoy time-to-time. So, to ensure the sweetness of your investments, look out for stocks that are performing well and book profits in the stock market to reap those gains. However, it would be recommendable if the profits are significant and not affecting your long-term investment goals.
With the profits made, you can utilize that gains in some good use like planning a vacation with your family or re-invest to make more profits in the future.
Say no to ‘Bura Na Mano Holi Hai’
Who does not know about – Bura Na Mano Holi Hai? From enjoying water balloons, colours, and wetting people, every action has a single excuse – Bura Na Mano Holi Hai!
In such happy times, you may let go and enjoy the festival of colours while coming out of your safe zones. But, when it comes to the stock investments, it would be recommendable to not get influenced by someone and stick to your strategies despite the volatility in the stock market. The benefit of wealth creation prevails if one takes adequate precautions. Whether it is a festival or investment, you shouldn’t get influenced by someone else.
Final Thoughts: –
Hope, these secrets will enlighten the secrets and lessons to learned from the festival of colours. If followed right, one can benefit a lot and see a bloom within the investment portfolio over time.
Wish you a happy Holi!