Namaste to all the readers,
Greetings to all of you on this festive season of Uttarayan.
Those who have ever seen the crazy mood of people in Ahmedabad will surely drop in to this city without any invitation. The vibrancy of growth is being felt at all level. I remember my childhood days, when I was collecting all the threads of caught kite and trying to retain it for next Uttarayan. These days, the torn kites are thrown and nobody cares to collect the thread. Oh, we are entered in to this consumption phenomenon. This phenomenon creates huge demand and today, this is the psychology of almost as many as 120 Crore Indians. They have led us to the consumption oriented country. We can see over consumption and waste almost everywhere and the effect on economy is Inflation.
The Inflation to a country is like a diabetic to an individual. Both create multilevel negative impact on the sufferer. The inflation puts its effect in following way.
The season of Growth also brings one message. If there is a growth, the growth will be almost everywhere. In some asset class, it is particularly very high. The most victimized investor due to this growth is the person who has invested his money in fixed deposits. The interest income is Taxable, so net income inflow is very low and not sufficient enough to surpass the inflation. As a result, the investor becomes poorer day by day even he has good money on his hand. I think this is high time for all investors to look in to diversification among asset class. All the investors should consider asset allocation before investment. The young investors are required to plan their investment first and then after remaining amount to be spent for their daily living. The day to day increase in expenses and effect of lifestyle improvement will eat out all surplus income if not planned properly.
I am happy that my all weekend is mostly successful to draw investment plan for youngsters. I have seen great enthusiasm in them and I am sure those who have gone through my advice of asset allocation will surely follow it in disciplined way in the years to come.
During the Vibrant Gujarat Summit days, I had British lawyer at my home as a guest to experience the kite flying. I was showing him tricks of controlling the kite in the sky, the control over direction of kite and to manage in low or high winds. There is a great similarity between kite flying (kite control) and control over our greed and fear in our financial decisions.
I can put this phenomenon like this way, when there is a high wind, the kite is rushing itself in the sky and you cannot allow it to go at high sky. You have to keep enough amount of the thread available with you. Also the kite becomes heavy, so you have to see that the fingers remain safe. Similarly in monetary decisions, we are required to take care of our psychological greed. We have to account for the investment surplus available and to see that there should be no extra leverage during this high time.
In case of low wind or no wind, one has to try hard. Constant attempts and balancing will keep kite in air. Similarly in recession, we are required to put our efforts sincerely, continue it constantly and to try hard to be in the air.
So, the learning of kite flying helps in Investing and in any business as well
