Celebrating Gandhiji’s Principles: Importance of Discipline Wednesday, Jan 02, 2019
"There can be no room for selfishness, anger, lack of faith or impatience in a pure fast. Infinite patience, firm resolve, single-mindedness of purpose, perfect calm, and no anger must of necessity be there. But since it is impossible for a person to develop all these qualities all at once, no one who has not devoted himself to following the laws of ahimsa should undertake a Satyagrahi fast." One hundred and fifty years after his birth, the echo of the Mahatma's words may have dimmed. However, the impact on those who choose to follow his philosophy remains profound.
The philosophy of fasting calls upon people to look within themselves to become masters of self. To fast is to identify the dependencies within self and to free oneself from the shackles of these dependencies. Instead of looking outside of ourselves and counting potential enemies, fasting summons us to turn our glance inward, and to take the measure of our greatest challenge: the self, the ego, in our own eyes and as others see us. This is why fasting is not only a part of worship, but is also considered a great instrument for self-discipline. It is a training of the mind to endure hardships, weather all storms and to persevere under difficulties and not give up.
Modern Day Fasting in the Investment World
Fasting is in a way inculcating the discipline to abstain. An investor is regularly confronted with a melee news flows, analysis and “good faith” advise. An astute investor should maintain a safe distance from all this information overload. This is abstinence in another form. However, it is not easy to drown out the noise. It is only through discipline and an unwavering focus on portfolio goals that an investor can parse through market noise without reacting to each one of it. Fasting gives us the discipline to stick to our goals even at the time when the goal looks like a mammoth task.
Don’t succumb to temptation
In the stock markets, everyone has a “hot tip” and many recommendations come packaged as the next sure thing. Emulating stories of success often seem like the best way to “get rich quick”. However, a disciplined investor should turn away from the temptation of investing in fleeting stories and instead stay focused on her financial plan and assiduously stick to it. Much like fasting and avoiding food, ignoring temptation in the investment world is much easier said than done. Investors need to create a financial plan and make investment decisions that best adhere to this financial plan.
Curb emotional bias
Traditional finance theory postulates that equity markets are efficient and that all investors are rational. What this basically means is that all investors are capable of taking unbiased and rational decisions. However, this is far divorced from reality. Investors can infact be completely irrational while making investment decisions and are often unduly influenced by their experience and biases. It requires resolve and commitment to one’s goals to both recognise and then eliminate these biases.
Fasting requires a great deal of discipline and personal grit. Gandhiji used fasting as a tool to achieve his goals. For him, it was more of a means to an end. Similarly, for investors, discipline becomes a potent tool. One, which yielded persistently, can help investors achieve their goals. Another means to achieving the end goal of financial freedom.
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.