On a Saturday morning, as you unroll your yoga mat and ease into your first asana, your mind and body harmonise. This mirrors the delicate balance of risk and reward in investing. Yoga, the ancient Indian discipline, offers lessons as applicable to your investment portfolio as they are to your physical well-being.
In reality, yoga and investing are not as divergent as they seem. The flexibility in yoga is akin to the financial flexibility obtained through investing. The principles of balance, patience, and long-term commitment prevalent in yoga also apply to investing, particularly in the case of Mutual Funds.
Balance: the art of diversification
Achieving and maintaining balance is essential in yoga. Whether you do a tree pose or attempt a headstand, evenly distributing your weight is the key to avoiding toppling over. This very principle is the cornerstone of investing - diversification.
The concept is to avoid putting all of your money into a single basket but to diversify and spread it across multiple investment options like Mutual Funds, Fixed Deposits (FDs), Recurring Deposits (RDs), the National Pension Scheme (NPS) or a Public Provident Fund (PPF) Account.
Spread your investments across multiple avenues to assist in achieving the right balance between risk and returns, akin to achieving that perfect yoga pose.
Patience: your best friend in yoga and investing
A yoga session isn't about racing through various poses but about embracing each moment. Patience, likewise, plays an indispensable role in the investing realm. The magic of compound interest in Mutual Funds and FDs, much like the slowly unfolding benefits of a yoga routine, come to fruition over time. For example, if you were to invest Rs 1 lakh in a mutual fund for 15 years, with an assumed annual growth rate of 12%, your investment would increase to Rs 5.5 lakh. Nevertheless, if you decide to remain invested for an additional 5 years, your investment could grow to nearly Rs 10 lakh – that’s the power of compounding.
Long-term commitment: the path to growth
Yoga is not a one-time deal. Its benefits manifest with consistent practice. In the same way, investing is not a means to get rich quickly; it's a long-term commitment and journey, akin to a marathon rather than a sprint.
Just as you wouldn't expect to effortlessly master a challenging yoga pose in a single day, having unrealistic expectations of achieving high returns overnight from a SIP would be impractical. The potential of SIPs gets unleashed when you view them as a long-term goal.
The power of regular practice
Yoga encourages regular practice for steady progression. Recurring Deposits and SIPs work on the same premise. By investing a fixed amount at regular intervals, you can potentially generate substantial returns over time, much like your flexibility and strength improve with regular yoga sessions.
Many young investors often delay their investment plans, claiming that they lack sufficient funds to begin. However, it's important to note that even if you initiate investments with as little as Rs 2000 each month, your portfolio could potentially reach Rs 38 lakhs over a 25-year period, assuming a 12% annual growth rate.
Investment breathing techniques: your strategy matters
Every person who does yoga knows the importance of controlled breathing in yoga, it enhances focus and endurance. In the same vein, having a strategic approach towards investment is essential.
Whether you are leaning towards an FD, investing in a PPF Account or choosing a Mutual Fund SIP, each avenue requires a well-thought-out strategy tailored to your financial goals, much like each yoga pose is tailored to the individual's capabilities.
Bending but not breaking: flexibility in investment choices
Just as a person practicing yoga bends and flexes their body, an investor must be flexible in their choices. Given the dynamic nature of the investing world, rigid strategies may not always yield the desired results.
You should cultivate adaptability and remain open to new opportunities. This may involve exploring diverse Mutual Funds or utilising a Fixed Deposit Calculator to assess the potential earnings from an FD.
[Also Read: 5 benefits of investing for the long term]
Conclusion
Incorporating the principles of yoga into your investment strategies can bring about a sense of financial zen. Whether you plan to invest in mutual funds, FDs, digital gold, sovereign gold bonds, or a PPF account, remember to maintain balance, exercise patience, commit for the long term, and remain flexible.
Embrace the lessons learnt on your yoga mat and apply them to your investment strategy. For the ultimate integration of discipline and recurring investment, consider starting your investment journey through the bouquet of investment products offered by Axis Bank.
Just as yoga is a journey of the self, to the self and through the self, your investment journey is a path towards financial self-discovery. Let the discipline and wisdom of yoga illuminate your investment journey.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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
Mutual Fund investments are subject to market risk, read all scheme related documents carefully. Axis Bank Ltd is acting as an AMFI registered MF Distributor (ARN code: ARN-0019). Purchase of Mutual Funds by Axis Bank’s customer is purely voluntary and not linked to availment of any other facility from the Bank. *T&C apply
