7 Investment Lessons We Can Learn from Lord Krishna This Janmashtami

The most renowned message of Krishna is delivered through the Bhagavad Gita - 'Karmanyevadhikarasthe maa paleshu katakana, Ma karma phalaheturbhuh matey sangha astu akarmani.'

This verse in Sanskrit is commonly translated as "Your right is only in Karma; you should believe in performing your duties, regardless of the results".

Lord Krishna, known for his wisdom, strategic thinking, and ability to remain calm amidst chaos, offers timeless teachings that can be applied to various aspects of life, including the complex world of investments. The current scenario in the Indian equity market, characterized by volatility and uncertainty, provides a perfect backdrop to explore how Krishna's wisdom can guide investors through turbulent times.

Market volatility is a term that often evokes anxiety among investors. It refers to the rapid and significant price movements in the financial markets, driven by factors such as economic data, geopolitical events, investor sentiment, and market speculation. Just as the waves in an ocean are never still, market volatility is an inherent part of investing, reflecting the dynamic and ever-changing nature of the financial landscape.

Similarly, Lord Krishna's life was filled with uncertainties and challenges right from his birth. Born in a prison cell under the tyrannical rule of King Kamsa, Krishna's journey was fraught with dangers and unpredictable events. Yet, Krishna navigated these challenges with grace, wisdom, and strategic thinking, emerging victorious time and again. Investors, too, can learn from Krishna's approach to uncertainty and apply these principles to manage market volatility effectively.

[Read: Learn 5 Financial Mantras from Lord Krishna]

Lord Krishna had played a decisive role in the battle of Kurukshetra, swinging the odds in favour of the righteous - the Pandavas. He is best known for providing strategic advisory to them at every stage of the Kurukshetra war. He prepared strategic allies and provided critical on-field counselling to a disheartened and diffident Arjuna.

Janmashtami is a good time to familiarise yourself with Krishna's divine philosophy and adopt some of these strategies in financial planning to meet your personal investment goals.

Notably, there are a lot of similarities between investment planning and Lord Krishna's war tactics. As the nation celebrates Janmashtami, we look at stories and teachings from Lord Krishna's life and learn some investment lessons from the wisdom and actions of the master planner and strategist.

1. Stay Calm and Composed: Krishna's Serenity Amidst Chaos

One of the most notable aspects of Krishna's character is his ability to remain calm and composed during times of chaos and uncertainty. Whether it was facing King Kamsa's threats or guiding Arjuna on the battlefield of Kurukshetra, Krishna maintained his serenity, providing clear and thoughtful guidance.

In the current volatile Indian equity market, investors often experience panic and anxiety, leading to impulsive decisions like selling off investments during market downturns. However, Krishna's calm demeanour teaches the importance of staying composed and not letting emotions dictate investment decisions. A calm and disciplined approach helps investors avoid knee-jerk reactions and instead focus on their long-term financial goals.

Investment Lesson: During periods of market volatility, maintain a calm and composed mindset. Avoid making impulsive decisions based on short-term market movements. Focus on your long-term investment strategy and goals.

2. Embrace Uncertainty and Adaptability: Krishna's Dynamic Nature

Krishna's life was marked by adaptability and resilience. From his playful yet strategic childhood in Vrindavan to his pivotal role as a charioteer and counsellor in the Mahabharata, Krishna adapted to various situations with grace and wisdom. His dynamic nature teaches us the importance of embracing uncertainty and being adaptable.

Market volatility is a natural part of the investment landscape, especially in emerging markets like India. Rather than fearing volatility, investors should embrace it as an opportunity to reassess and adapt their investment strategies. For example, market downturns can provide opportunities to buy quality stocks at lower valuations. Similarly, adapting to changing market conditions, such as shifting from growth stocks to defensive stocks, can help manage risk and optimize returns.

Investment Lesson: Embrace market volatility as an inherent aspect of investing. Be adaptable and flexible in your investment approach, adjusting your strategies to capitalize on opportunities during uncertain times.

3. Focus on Your Long-term Goals: The Bhagavad Gita's Wisdom

The Bhagavad Gita, a sacred dialogue between Krishna and Arjuna, offers profound insights into the importance of focusing on the bigger picture. Throughout the battle of Kurukshetra, Lord Krishna did not allow the Pandavas to lose sight of their goal, which was to conquer Adharma, represented by the Kauravas. Krishna advises Arjuna to rise above his immediate fears and doubts and concentrate on his broader duty (dharma) without attachment to the outcomes.

[Read: This Janmashtami Learn How to Reach Your Financial-Handi (goals)]

In investing, this wisdom translates to focusing on long-term financial goals rather than getting swayed by short-term market volatility. The current fluctuations in the Indian equity market should not deter investors from their long-term objectives. Historically, markets have recovered from downturns, and those who stay invested typically benefit from long-term growth and compounding returns.

Investment Lesson: Focus on your long-term financial goals and avoid being distracted by short-term market volatility. Stay committed to your investment strategy and maintain a disciplined approach.

4. Strategic Thinking and Risk Management: Krishna's Role as a Master Strategist

Krishna's role as a master strategist is evident throughout the Mahabharata, where he guided the Pandavas with astute strategies and tactical moves to navigate the complexities of the battlefield. His emphasis on planning and risk management can be directly applied to investing, particularly during volatile market phases.

Investors should adopt a strategic approach to investing by diversifying their portfolios across different asset classes-equity, debt, and gold-to manage risk effectively. Diversification helps reduce the impact of market volatility on the overall portfolio, ensuring a balanced risk-return profile. Investors may consider a 'core & satellite' investment strategy.

[Read: Navigating the 2024 Market Volatility: Key Investment Strategies for Your MF Portfolio]

Additionally, regular portfolio reviews and rebalancing can help investors stay aligned with their financial goals and adjust to changing market conditions.

Investment Lesson: Create a strategic investment plan that includes diversification and risk management. Regularly review and rebalance your portfolio to stay aligned with your financial goals and market conditions.

5. Have Control On Your Emotional Biases: Krishna's Skills In Dealing With Emotions

On the battlefield of Kurukshetra, Arjuna was overwhelmed with emotion about waging war against his brothers, elders, teachers, and friends. Like Arjuna, investors sometimes are attached to and emotional about their investments, even the ones that may be preventing them from achieving their financial goals.

Krishna helped his friend Arjuna understand why it was necessary to participate in the war and thus saved the Pandavas from a major setback. Similarly, to have better control of your portfolio and address key goals, it is important to leave emotions out of investments.

Don't get carried away by your emotions, particularly fear and greed. You need to make informed investment decisions based on an objective, rational view of the market conditions and your risk appetite. Stick to your budget and targets; many investors make decisions based on 'tips' in the hope of generating higher returns.

Do your due diligence and research to avoid such traps that evoke your greed to take over your investment decisions. It is equally vital to dodge the herd mentality and avoid decisions influenced by emotional biases.

Investment Lesson: Avoid making investment decisions based on emotions, especially when considering selling a long-held underperforming investment. Instead, evaluate how the investment fits into your overall portfolio and assess its performance using both qualitative and quantitative criteria. Make decisions based on analysis, not emotional bias.

6. The Importance of Balance: Krishna's Balance Between Material and Spiritual Life

Krishna's life was a perfect balance between the material and spiritual worlds. He enjoyed the pleasures of life but was also deeply spiritual and committed to his dharma. In the world of investing, maintaining a balance between different asset classes and investment strategies is crucial.

A balanced portfolio that includes a mix of equities, debt, and gold that may provide stability and growth. It is essential to balance between aggressive investments for growth and conservative investments for stability. This balanced approach can help achieve financial goals while minimizing risks, much like Krishna's balanced approach to life.

Investment Lesson: Maintain a balanced portfolio with a mix of asset classes to achieve growth and stability in your investments.

7. Knowledge and Continuous Learning: Krishna as the Eternal Teacher

Krishna is often regarded as the eternal teacher, imparting knowledge and wisdom to his followers. The Bhagavad Gita emphasizes the importance of understanding one's actions and their consequences, underscoring the value of knowledge and awareness.

In the context of investing, knowledge is a powerful tool. Investors must educate themselves about the markets, understand economic trends, and be aware of the factors driving market volatility. For instance, understanding the impact of interest rate changes or inflation on various sectors can help investors make informed decisions about asset allocation. Continuous learning and staying informed about market developments enable investors to adapt their strategies and make sound investment choices.

Investment Lesson: Invest in your financial education and stay informed about market trends and economic conditions. Knowledgeable investors are better equipped to navigate market volatility and make informed decisions.

To conclude...

Janmashtami is not just a festival of joy and celebration but also a source of profound life lessons. By drawing parallels between the divine wisdom of Janmashtami and investment strategies, we can cultivate a more thoughtful, disciplined, and effective approach to managing our wealth. Just as Lord Krishna guided his devotees through life's challenges, these lessons can guide investors towards achieving their financial goals with wisdom and resilience.

Incorporating these investment lessons from Janmashtami into our financial journey can help us navigate the complexities of the market. Remember, the path to financial prosperity is not a sprint but a marathon. It requires persistence, discipline, and a willingness to learn and adapt.

May Lord Krishna bless you, and may you reap the rewards of your Karma and Dharma accordingly.

Wishing you all a very Happy Janmashtami!

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.