Financial Lessons from Holi

Holi is one of the most popular festivals of India being celebrated by people across the length

and breadth of the country. As all festivals in our country mark various occasions or past

happenings along with providing us several valuable lessons to learn from. Holi is also such a

festival which teaches us great lessons regarding financial and investing decisions and practices.

5 of the financial takeaways from Holi are listed below :

BY RATTANDEEP | 3 mins read

Diversification

We use different colours to enjoy playing holi as it would get very boring to play using a single

colour, Similarly we should diversify our investment portfolio into various asset classes. By

concentrating our investments into a few assets we run the risk of incurring huge losses, it is

better to invest in different assets and spread your risk over a varied portfolio. This helps to

incur good returns in the long run while reducing the inherent risk.

Destroy the evils from your portfolio

Holi is the festival of the victory of good over evil. It tells us to study our portfolio and remove

the bad assets and other evils such as high cost debt, from your portfolio to make the maximum

out of your investing strategy. This help achieve better benchmark beating and stable returns

from your investments.

Avoid hazards and play safe

As with any festival, we usually get too excited and forget about our own safety and may go

overboard while celebrating the festivities. Similarly while in the markets, one must take some

precautions to guard against going overboard with our own investing strategy which might

result in huge losses. One should objectively evaluate his strategy and should try to play safe

and keep in mind their risk appetite and invest accordingly.

Welcome new Beginnings

Holi festival celebrates new beginnings. All the negativity is left behind leaving room for positivity and prosperity only. In the case of investments, we say, it is important to burn down the ideas and thoughts that stop you from moving on. Allowing yourself to stay in a comfortable spot is a good idea but to never come out and look for better investment opportunities can make you lose quality returns.

Therefore, burning down and leaving behind the negative blocks for a progressive future is what you should consider and make new investments and enjoy higher earnings.

Reap the fruits of your good investments

Holi is not only a festival of colours, it’s known for its delicacies of Gujiya and Thandai. These

delicacies take some good time to be prepared , Similarly investors should also wait patiently

for their bets to payoff and then enjoy their investment by allowing the markets to work at

their own pace and allow wealth creation to take place . They may also book partial profits from

their earlier sweet investments which may be reallocated to other better avenues.