5 money lessons from Dilip Kumar: Personal Finance Ideas

Today, we pay tribute to Dilip Sahab and look a little deeper to derive crucial financial and investing lessons that we can adopt from his life, death, and body of work. Or, as Prince Saleem would say,

“ Investments jo timely, regular aur disciplined Nahi Hoti, vo long-term wealth creation Nahi, ayaashi hai, gunaah hai”.

– Dilip kumar
Dilip Kumar
  1. Strike a balance between Ram and Shyam: Arguably one of his most memorable films, in a departure from his usual tragic roles, Dilip Sahab essayed the dual characters of Ram and Shyam, twin brothers lost in a childhood fair who grow up as completely different individuals. While Ram is meek, timid, and is not a risk-taker by nature, Shyam is flamboyant, outspoken, brash, and aggressive. And together, they make for a great duo.
    Similarly, your portfolio deserves a balance of both high-risk-high return equity instruments, cushioned by the safety and stability of your debt investments. In the face of market volatility, while equity will ensure solid and competitive gains on the back of growing companies, your debt funds will make sure you do not lose significant money by investing it in safe, government-backed securities.
  2. Do not even let the king sway you, because investment kiya to Darna kya?: The rebellious Prince Saleem went against his father, the great king Akbar, to profess his love for Anarkali, who was a mere court-dancer. While the infuriated king did everything possible to separate the two, Salim and Anarkali still went down in history as classic examples of love and endurance. Market ups and downs can be scary, forcing you to reconsider your investment decisions. Seeing the Nifty and Sensex in red can discourage you to not put money in the market, or withdraw it after every downtrend. Do not. Wealth-creation is a long-term, gradual process that takes time, so do not let small market setbacks scare you. The stock market is bound to revive in the long run, and then, thanks to the power of compounding, which is simply the accumulation of interest over interest, you will be sitting on a comfortable corpus. In fact, the BSE Sensex has appreciated more than 9,000% since its inception and the NSE Nifty has grown by more than 1,000% since its start in 1992. Persistence pays off
  3. Kaun invest karta hai market chodne ke liye? Hum to invest Karte hai taaki future secure kar sake – The Bimal Roy directorial remains one of Dilip Kumar’s cult classics. His severe alcoholic mannerisms eventually lead to his death, but there is something else to learn here as well. Trading, as many people see it, offers a shortcut to make quick bucks and profits, without having to devote much time and energy as demanded by investing. That’s incorrect. Indeed, trading is exciting and thrilling, much like the rush of alcohol. But jumping into trading deep waters without having enough knowledge, sufficient prior investments, and high leverage are dangerous, akin to gambling. Set aside a comfortable amount of investments that guarantee your financial security, and then start trading in the market with caution and understanding.
  4. Embrace the Naya Daur: The fight between a bus and a tonga might seem weird, more so when we see Shankar’s tonga emerging as the winner. But the movie does have an important lesson to teach, to be more embracive and accepting of new, potentially successful small-cap and mid-cap companies. Though they are rife with risks, they are the future. Instead of banking only on bluechip and large-cap funds, you must allow at least 5-10 percent of your portfolio to such stocks. The S&P BSE Smallcap index (112.82 percent) has also managed to outperform Sensex (93.49 percent) over the last five years, so there’s some encouragement there! Do not be afraid to kill your kin Do not worry, it’s not as violent as it sounds. In Shakti, starring alongside Amitabh Bachchan in one of his last films, Kumar played a virtuous police officer who was willing to let his own son die in exchange for not letting a gangster loose and breaking the law. Similarly, our assessments about the market can go wrong. Do not hesitate to own up to your investing mistakes and in making prompt portfolio corrections as and when there is a need. With regular assessments and periodic check-ins with your investment plans, you can make sure you are on the right track to financial safety!

source: money control

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