This Janmastami, Let Lord Krishna inspire your investment management.

Lord Krishna is one of the most interesting characters of the Epic Mahabarata. His role and machinations in the various aspects of Mahabarata is well known. All his actions were intended to bring the good to prevail on this earth.

In the final battle of Mahabarata at the Kurukshetra, when Arjuna faces all his kith and kin in the enemy camp and is confused and steps down from his chariot, lacking the conviction to fight. It is Lord Krishna who provides the advice, which is contained in the doctrine of Bhagavath Gita.

While the advice given to Arjuna by Lord Krishna is the subject of the entire Bhagvad gita. My favourite among them is

II कर्मण्येवाधिकारस्ते मा फलेषु कदाचन,

मा कर्मफलहेतुर्भूर्मा ते सङ्गोऽस्त्वकर्मणि II

“You have a right to perform your prescribed duty,

but you are not entitled to the fruits of action.

Never consider yourself the cause of the results of your activities,

and never be attached to not doing your duty."

What this implies is that focus all your energies on the work at hand and how to do a brilliant job of it. You do not have control of the outcome and stressing too much on the outcome and foregoing the task of acting is counterproductive. We rarely control all the factors relating to the outcome of our life/ activity. We may attempt to predict using normal tools, but the reality is unpredictable. However the effort and diligence that we apply to the task at hand is entirely ours and we must devote 100% of our energies and focus to that work, without being worried about the outcome.

From a Portfolio Management standpoint, this alludes to the following logic :

  1. You can never always predict or control the outcome of your portfolio, what you can do is to create the portfolio as per your design. However most often than not most of us are so focused on the outcome that we do not give enough attention to ensure that the portfolio is sufficiently constructed to reflect our needs/ aspirations as well as our risk temperament.

  2. Also because the end result isn’t in your hands, you are not excused from doing all that is in your means to ensure that the investment you are making is the best one in the given situation. So it implies that you have done 100 % due diligence on the investment option with respect to safety, returns, risks, time horizon, liquidity among the many and also ensure that it matches with your needs and aspirations. This is thus an unsaid duty of every investor.

  3. On an ongoing basis , instead of just looking at the results and reacting thereto negatively / positively. Periodically one must find ways to rebalance their portfolios as per the plan. This will ensure that the investments are always aligned to the needs of the investor.

This JANMASTAMI, let us bring a little bit of Krishna‘ism to our portfolio management.. tell me what you think at

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