Inspiring Investment Tricks to Learn from Holi

Holi is one of the several Indian festivals that celebrate the obliteration of evil. However, the only thing that differentiates this festival from others is the joy of colours. Each year, people get together to dunk one another in varying colours, eat sweets, exchange gifts, and spend time with friends and family. However, if you observe it closely, this festival can teach a variety of investment tricks and lessons to those who wish to double their money and increase their wealth. With this post, let’s navigate through some inspiring investment tricks that you can learn from Holi.

Investing Lessons to Learn from Holi

1. Decorate your portfolio just like a colour plate

Holi is a festival that you cannot play with merely one colour. For it to be vibrant and enjoyable, you must have a collection of different colours, right? Just like that, when you are Investing in the Market, you must diversify and invest the money in different stocks. It is one of the best ways to balance profit and risk in the Portfolio. Through diversification, you can even expand the exposure in such a way that you don’t restrict yourself to one asset type. This practise majorly decreases the Volatility of the portfolio over a time period.

2. Get rid of high-risk assets to triumph over evil

As it is widely known, Holi celebrates triumph over evil. On the EVE of Holi, Hindus light Holika, which is symbolic of the evil sister of Hiranyakashyap, who perished in the fire. She sat in the fire with Hiranyakashyap’s son – Prahalad – who came out of the fire without a scratch. In a similar way, make sure you evaluate your portfolio and eradicate all the evils of it. Here, evil is symbolic of high-risk stocks and investments that don’t serve anything substantial to you and are only damaging your growth.

3. Practise caution to stay safe

Holi can be enjoyed at its best by ensuring that you are safe. Whether it is about selecting an organic colour that will be environment-friendly or staying away from ruckus-creating people. Even when relishing sweets and drinks, you must keep the intake moderate so as not to regret it later. Talking about the share market, make sure you exercise safety and caution. Think twice before putting your money into anything. Match your investments with your risk appetite. Keep a distance from stocks and investments that might bite you later in the long run.

4. Catch up the way you’d with your close ones

Whether you are running behind your friends and family to colour them well or catching up with old pals after years, this one is a good lesson for both Holi and investments. Experts recommend catching up with all the investments you have made so far. Review them periodically to see how they are performing. The way you will catch up on things happening in your close ones’ lives and ensure they are doing good; you must assess your investments in a way to see whether they are helping you meet your investment objectives or not.

5. Eradicate the major burden of your life

As mentioned above, the eve of Holi celebrates the victory of good over evil. Just like how demoness Holika was gotten rid of, you must make sure that you eradicate the burden from your life as well. Now, as an investor, debt could be a major drawback, holding you off from making better investment options. Monthly loan EMIs and credit card payments, if not handled efficiently, can wreak havoc on your entire financial planning. So, taking the inspiration from Holi, burn all the poor debt responsibilities you are walking around with. And the money you will ultimately save should be strategically invested in the market.

6. Keep the backup of colours for emergency

The enthusiasm and zeal of this festival prevail if you play and take accurate precautions as well. Ideally, you should avoid anything that can be hazardous and have a backup of all the colours in case you are short of them, and someone unexpectedly comes to colour you up. In a similar fashion, life continues to throw curveballs our way, which could be unexpected and hazardous to our financial health. Considering the uncertainties all around, it is essential to create an emergency fund. This backup should have sufficient funds to cover 12-24 months’ worth of monthly expenses, including EMIs. This will be a safety net during emergencies.

7. Use the stuff lying aside

If having a steady Income is good, saving an amount each month from it is even better. However, if you have savings lying idle in the account, it simply means you are not using the money to its utmost potential. You would have heard about the advice where experts ask you to - make money work for you, right? Unfortunately, not many people are competent enough to make it happen. So, if you have a significant amount lying just like that, use it to invest to ensure you get some return on the savings. You can start investing as low as Rs. 100 or Rs. 500 with Systematic Investment plan (SIP).

A systematic Investment plan is one of the best ways of Investing your money. SIP’s start the process of wealth creation where a small amount of money is invested over regular intervals of time and this investment being invested in the stock Market generates returns over time.

Conclusion

Believe it or not, you can learn something fundamental from things around you, especially Indian festivals. You just need a vigilant eye and look at the right places to learn better. In each part, Holi has share market investment tips to offer. Make sure you are observant enough to discover them and keep learning from them.