Diwali lights It is called the festival of which is celebrated by the largest number of Indians. The center of Diwali celebrations is Lakshmi Puja, where we worship Goddess Lakshmi to bring wealth and prosperity to the home. When we worship Goddess Lakshmi, we understand the importance of karma. To achieve wealth, we must work hard and also invest wisely. Whenever we plan our investment portfolio, we can take inspiration from the puja thali of Goddess Lakshmi. A puja thali contains a variety of items, each of which plays an important role in the entire process of puja. Just as each item in a puja thali serves a different purpose in fulfilling a ritual, in a multi-asset fund different asset classes come together to form a strong portfolio for investment. Like different items in the puja thali, multi-asset funds also include different asset classes like equity, debt, gold along with cash. CEO of Baroda BNP Paribas AMC Suresh Soni We are telling how we can take the mantra of investment from the puja plate.
Diya (Deepak): Equity is like Deepak in the portfolio
The first and most important component of the puja thali is the lamp. A lamp symbolizes dispelling darkness and it brings hope and clarity to one's life. It is the guiding light that illuminates the entire ritual. In the context of multi-asset funds, equities also play their role like Deepak. Equity is generally the growth engine of a portfolio, known to deliver high returns in the long term.
Just as a lamp illuminates a room, equity helps illuminate the path to growth by offering high returns over the long term. Although they carry a certain level of risk due to market volatility, their potential for wealth creation makes them essential for a well-balanced portfolio. Many researches have shown that equities have always given investors a better experience with positive returns over the long term. Equity is the asset class with the highest long term returns.
Flowers: Debt asset class is like fragrance
Flowers are another important component of Goddess Lakshmi puja thali, which adds to its beauty and symbolizes purity. They add fragrance and color to the puja. It increases peace of mind in the process of worship and helps in making it more spiritual. In multi-asset funds, debt alternatives—such as bonds, debentures and government securities, play a similar role.
Roli/Tilak: Gold, protective cover
Roli or Tilak is applied on the forehead during puja as a symbol of auspiciousness and protection. This holy symbol protects the devotees from negative energy. In multi-asset funds, gold thus acts as a safety shield.
Gold is often considered a security or hedge against inflation and market downturns. Like Tilak, which protects as well as blesses, gold also safeguards your portfolio by acting as a safe asset class during times of economic turmoil. Its ability to preserve value makes it a must-have asset class for investors looking to protect their investments.
Coins/Money: Cash Equivalents
Finally, coins or money are placed on the puja thali as a symbol of wealth, prosperity and having adequate resources financially. They are meant to seek blessings from Goddess Lakshmi for financial growth and stability. In the investment world, cash or cash equivalents, such as TREPS (Treasury Bill Repurchase Agreements) and Treasury bills, are similar to these coins.
Cash creates a safety net within the portfolio, providing stability and flexibility to the portfolio during market volatility.
Result: better balance
Just as a puja thali is incomplete without all these items, a mix of asset classes is needed to balance a portfolio and achieve high returns in the long run. Multi-asset funds offer investors a diversification for wealth creation with a combination of equity, debt, gold and cash, thereby strengthening your mutual fund portfolio.
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