As the festival of Holi is upon us, it is time to look forward to another season of colour, sprinklers and joy. This season, let us focus on the colours of Holi. Typically, you are greeted with a plate of colours and the prayer “Bura na mano Holi hai”. It essentially is an exhortation to people to celebrate the festival of Holi with the right spirit of friendship and forgiveness.
Have you ever wondered what the various colours of Holi depict? Obviously, each colour has a certain unique significance. As financial advisors, we go one step further. When adding colour to your life, let us also see how the various colours and the significance of these colours can add a new robustness to your investment portfolios.
Blue is the colour of equanimity under stress
What does blue in Indian mythology symbolize? It is the colour of Lord Krishna whose body turns blue because the demoness Putana tried to poison him. Then there is the story of Lord Shiva in the Amrit Manthan. Lord Shiva drinks the poison emitted by the snake and thus earns the name Neelakantha (blue neck). Both Lord Krishna and Lord Shiva absorbed the venom with equanimity to protect the people of this world.
What does this mean for your investment portfolio. You need stocks in your portfolio that can maintain the balance and the stability through tough times. Markets by default are volatile and the equanimity and stability of blue can come from pedigreed stocks or other asset classes. The importance of blue in your portfolio is that the primary focus of your investment portfolio must be to hold itself above water in touch times.
Red symbolizes vibrancy in what you do
Among the various colours used in Holi, what does red symbolize? It is the colour of passion and vibrancy. That inner force that make things happen. In India, young brides wear red because they symbolize vibrancy and hope in their new households. It is a reminder that where there is passion and commitment, anything is actually possible.
What the colour red mean for your investment portfolio? These are your core multi-baggers. They may not be many in number but they are kind of stocks or asset classes that drive growth of the portfolio and the growth in wealth. These are the long term wealth creators that ensure that your corpus grows substantially over time. Red represents that vibrancy in your portfolio which makes the eventual difference to performance.
Yellow is your defence against all ills; a prophylactic approach
When we talk of yellow, in the Indian context, the best representation is turmeric. The speciality of turmeric is that it has a plethora of medicinal properties. Turmeric can be a natural defence mechanism against almost all kind of minor and major ailments. It is prophylactic in the sense that it prevents problems rather than curing them. That is exactly what the colour yellow signifies in Indian mythology.
What does this mean for your portfolio? A portfolio defence is more of an idea that can help you manage uncertain times. You may be surprised by the market by sudden falls, bankruptcy of companies, stocks going out of fashion etc. You build a prophylactic defence against such uncertainties by methods like hedging risk, diversifying your holdings, having a financial plan in place etc.
Green symbolizes hope and new beginnings
What is the first thing that comes to mind when you think of green as a colour. It is verdant fields, lush vegetation and dense forests. Green is about fertility; it is about hope of a new tomorrow and about new beginnings. Quite often, we find ourselves at the end of the road or in a tight spot. Under these circumstances, it is the hope and the optimism of a new tomorrow or a better future that keeps us going.
That is exactly what green symbolizes in your portfolio. It is about rethinking and reinventing your strategy continuously. The world is continuously changing from thermal power to renewable power; from offline stores to online retail and from diesel cars to electric vehicles. For your portfolio to be robust on a continuous basis, it must build on the eternal hope that it is possible to change for the better. That is the key.
Orange is the colour that is constantly energizing
The colour orange symbolizes the sun, which is called the giver of life. The energy of the sun is relentless. When the sun sets, it looks like everything has come to a halt. But next day morning, the sun is back to energizing life in its routine way. The world has survived for eons only because each morning the sun rises to energize this earth and the people living here. Orange, is the colour of continuous flow of new energy.
How do you juxtapose this to your investment portfolio? Your investment plan is work in progress. It continuously needs to be refreshed with new ideas, new themes and new ways of better your portfolio performance. It also means leaving the previous night of outdated ideas and old thoughts behind. Unless you are able to continuously energize your portfolio with a generous dose of fresh energy, you will eventually lose your way.
Black and white are colours too
We normally tend to equate black and white with the absence of colour, but that is not correct. They are colours too. Not everything that is black is bad. In fact, in Indian mythology black is the colour that is used to ward off evil. Black also denotes uniqueness and the ability to stand apart. What does white represent? It is about peace and sobriety. It is like the still waters of the ocean; deep and mysterious.
What do these colours mean for your investments? What are the evil forces that you need to guard your portfolio against? It is greed, arrogance, complacence etc. You need to ward off these evils and that is what black symbolizes. White, here, symbolizes the ability to think clearly without being affected by the noise all around you.
As we prepare for the Festival of Colours, spend a moment to ruminate on how these colours are not just the colours of celebration but also the colour of life and the colours of your secure financial future.
Here is wishing you and your families, a safe and happy Holi!