5 MinsSep 28, 2022
Navratri, the nine-day festival is celebrated in honour of Goddess Durga who incarnated various avatars while battling the demon Mahishasura. Each day of Navratri has its own significance and a colour code. This year, along with
getting outfits in the nine colours of Navratri, why don’t you also take a look at nine financial lessons you can follow? Here’s a list of the nine colours and what you can learn from them:
Yellow is the colour of brightness, action and vigour and it symbolises awakening. You ought to have an awareness of your income, expenses and savings. It makes sense to engage in prudent budgeting because
it will result in a larger investible surplus that can be wisely deployed in various investment avenues (earning you decent returns) and your desired financial goals can be met. . The financial goals you set must be S.M.A.R.T (Specific, Measurable,
Adjustable, Realistic and Time-bound).
This colour symbolises the power of mind over matter and rising above ephemeral wants. To grow financially, a calm temperament, discipline and dedication are necessary. Chart out an effective strategy to match your
risk profile, investment objective, the goal/s you are addressing, and the time on hand to achieve those envisioned goals and then accordingly make productive investments that may help your hard-earned money grow and perhaps beat inflation.
This is a neutral colour -- neither black nor white. It signifies neutrality and balance. When you are evaluating the performance of your investment portfolio, an impartial or unbiased approach is necessary.
You need not frequently change your portfolio based on the noise in the market or look at what your neighbour, friend, relative, colleague, etc. has done as long as you own appropriate investment avenues in your portfolio. If the performance
of the portfolio is not on the expected lines, vigilance and course correction are necessary to limit losses and maximise wealth.
This colour represents luminosity, positivity and energy. To come out of darkness and ignorance, gaining knowledge on how to manage your hard-earned money smartly, learning about the outlook for each asset
class, asset allocation and promising investment avenues, etc. is vital.
White symbolises purity, brilliance and the union of wisdom and execution. Just like mixing the colour white with another colour creates another shade, your investment portfolio also needs a mix of all asset
classes and investment avenues therein. Diversification adds colour to your portfolio and in turn, helps reduce the risk and improve risk-adjusted returns. Thus own a well-diversified and fairly sized portfolio rather than overtly skewing
it to one particular asset class. That said, be mindful of the tax implications of every asset class and investment avenue therein.
[Also Read: Five financial lessons to learn from Lord Ganesha]
The colour red represents action and vigour. At times, when the opportunity is right it is important to be fearless and invest in risky asset classes. For example, when the equity markets have corrected significantly
since the peak, it would be wise to take a plunge and invest in ‘value-buys’ that may generate exponential profits for you in the long term. That being said, red also represents danger. Hence, if you see an abnormally high risk,
then avoid investing. Also, if your portfolio is deep in red, you ought to review it by culling out the duds and replacing them with better and suitable avenues.
7. Royal Blue
The colour blue is usually looked up to as dependable. It signifies health and wealth. To make your portfolio look more dependable and robust, reach out to an investment expert who can help you build it. Furthermore,
so that you don’t have to depend on savings and investments (assigned for vital financial goals) in the case of any exigency, have an emergency fund (also known as a rainy-day fund). This should ideally be 12 to 18 months of regular
monthly expenses, including the EMIs on your loans. Moreover, have optimal life insurance and health insurance coverage, whereby it may offer financial security to your family in case of an untoward event.
The colour pink exudes hope, optimism and freshness of perspective. For a bright future, add a fresh and positive perspective to the way you manage your hard-earned money. If you have any vices, such as being
a spendthrift and recklessly using credit cards to shop, then make a conscious decision to shop using a debit card instead or pay off your credit card outstanding by availing of a personal loan at a lower rate of interest.
This will help you keep your financial health in the pink.
This colour represents achievement, accomplishment and power. If you have taken measures to save and invest enough and rightly as per your financial plan, invest in suitable avenues, keep your debts to a minimum
and hold insurance.
On the tenth day of Navratri, which is Dussehra or Vijayadashami, Ravana’s effigy is burnt to commemorate the triumph of good over evil. Take a lesson from Navratri and start planning for a prosperous financial future.
Disclaimer: This article has been authored by PersonalFN, a Mumbai-based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.