Lord Ganesha Wisdom| Know why and how to begin investing at young age!

When the legendary Indian equity investor and billionaire business magnate RK (Rakesh Jhunjunwala) began investing in equities at the young age of 25 in 1985 with a capital of ₹5,000, the BSE Sensex was trading around 300 points. The economic crisis of 1991 was a blessing in disguise for budding investors with a solid vision, bold attitude and confidence like RK. Many hurdles were gone with the launch of a raft of economic reforms, including the dismantling of the licence Raj. Liberalisation emerged as the gateway of opportunities for Indians with the opening up of the private sector. Since then, the Indian economy and the stock markets have grown multi-fold.

 The BSE Sensex, the oldest stock index of 30 companies, has marched a long way since – through highs and lows – from about 1050 points in January 1991 to an all-time-high of 62,245 in January 2022. The contribution of BSE to the Indian Economy has made it the temple of wealth creation.  RK, who was full of life, self learner, witty and insightful, was passionate about equities, India’s progress and growth story and that’s how he left behind an indelible contribution to the financial world. He will be revered not less than a deity for nurturing an equity cult (that was started by RIL  founder Dhirubhai Ambani) that is spreading fast in India among investors, including retail.

 You as a young adult in your 20s or 30s may be facing a tough  job market and rising costs, debts etc, but you have one most important factor working in your favour at the moment where India is aiming to be a developed nation in the next 25 years. That is you have the most important asset and that is time. Time is a key factor in wealth building. It allows you to take advantage of compounded returns. The impact of compounded returns augments your wealth building capacity. Obviously, having more time for your money to grow is a distinct advantage.  Learn how to start investing early

A visit to India’s big bull office you will find a big portrait of Lord Balaji at the entrance and into his cabin an excellent view of the Arabian Sea and several idols of Lord Ganesha, which were gifted to RK by his well wishers. The Ganesha idols inspired him and he believed that God is the giver of all wealth. When RK was just 15 – and that was the time when he started reading the newspapers to understand more about stocks and the correlation between news and price movements. 

 Lord Ganesha, the epitome of wisdom, remover of obstacles (Vighnaharta), symbol of happiness, master of knowledge (Vidya) is giver of Subudhi and Riddhi-Siddhi. (Subudhi means Virtuous thinking and doing what is right, and avoiding what is wrong).  In India, religious ceremonies always begin with offerings to Lord Ganesha. Lord Ganesha holds the unique position of being the first lord to be worshipped. Whether it is any occasion or a religious ceremony, Ganesh puja is a must. In India, the 10 days of Ganesh Chaturthi are celebrated with fun, joy, and optimism for the future. Ganesh’s idol is adorned in every home and workplace, especially in Mumbai, the financial capital of India and home to BSE, one of the fastest growing stock exchanges in the world.

 A study of the daily market charts of Indian Equities during the 10 days long Ganapati Festival over the last 30 years points to a fact that the benchmark indices have closed nearly 60 percent times in green.  Since the Ganapati Festival in September 1991 the BSE Sensex would be having 209 trading sessions till 9^th September 2022, the Ananth Chaturdashi that marks the departure of Lord Ganesha idols for immersion in water. Out of this the Sensex has closed in green 121/202 times which is nearly sixty percent. Not only this, the investor wealth increased multi fold the following year more than 18 times out of these 30 years.   

 Therefore, it’s an auspicious time to begin investing during Ganpati Festival.  Lord Ganesha is called the Lord of new beginnings. This reminds us that the most important part of any journey is to first begin. This is the first lesson when it comes to making money: you must take the first step and invest your money.

Everything about Lord Ganesh, from the elephant's head, ears, and trunk to the small mouse at his feet, is a symbol of traits and virtues that investors can adopt for a happy and successful life. Here are the top 7 investment and wealth creation lessons to take away from Lord Ganesha.

1.     Gajanana - The large head symbolizes wisdom

Make wise decisions, consider an S.M.A.R.T. goal-based financial plan, and use the knowledge and understanding you gain to work toward your financial goals.

2.     Lambakarna - Develop effective listening skills

This feature encourages you to pay attention, be open to new ideas, inculcate information to help you achieve your financial objectives, and be responsive to the flow of new financial strategies.

3.     Chinteshwara - A sharp eye

When it comes to your investments, paying attention to the details means that you always take note of the investments' distinguishing characteristics as well as the benefits and drawbacks of each investment avenue.

4.     Lambodaraya - Capacity to tolerate risk

Ganesh advises us to only consume what we can afford, to assess our risk tolerance, and to make investments in accordance with it.

5.     Vakratundaya - The trunk of flexibility

Your financial strategy must be flexible and adaptable like Lord Ganesh’s trunk in order to survive market volatility.

6.     Ekadantaya - Toss away risky investments

It takes strength and foresight to let go of underperforming investments that limit the portfolio's potential

7.     The Mushaka - Vahana of Lord Ganesha

Similar to how Ganesha is carried by a tiny mouse, your long term financial goals can be achieved through small continuous investments through SIP’s.

 Remove all obstacles and let go the ego

Lord Ganesha’s relation with Lord Kubera, the God of wealth, is well known. Ganesha taught a lesson to Kubera – who was intoxicated by ego and money power - by eating up all the food that was available at Kubera’s palace. This incident opened the eyes of Kubera and he changed his perspective towards money.

 This story serves as a reminder to all of us as well. We must create wealth only to create value, and not to satisfy our ego. Further, our value system should define how we can add value to others' lives rather than just earning money. We need to build on that. Once we focus on a more evolved thinking, then money will follow.

 The author of the knowledge piece- Mr Anand Varadarajan is Director at Asit C. Mehta Financial Services Group (https://www.investmentz.com)