In their quest for the Iron Throne, The Game of Thrones characters taught us a thing or two about investments. Here are 7 insights to help you in your investment journey.
The curtain’s down on The Game of Thrones, but the show and its characters continue to live in our memories. Some talked, some fought and some schemed. But in their quest for the Iron Throne, they taught us a thing or two about investments. Here are seven insights to help you in your investment journey:
Forget the fall(s)
From being broken to becoming King Bran the Broken, the youngest surviving Stark came all the way to the top, braving zombies, White Walkers and wildlings. The market also comes with its highs and lows and it is essential to not be troubled every time your investments take a fall. The only way out of the maze is to stagger your investments, study the patterns, gather all the knowledge needed before you make the big move, just like the first Stark King of the realm. Alternatively, just consult your investment advisor.
The patient rules
Most of us begin our investment journey just as naïve and full of dreams like Lady Stark, but she stays grounded through all her trials, grows gradually to become Queen in the North. The markets aren’t any different. For instance, you may sell off your MF investments if they give sharp negative returns over the year. However, persevering in the long run pays. An investment of Rs10,000 in a large-cap equity-oriented fund for a period of 10 years (assuming a return of 12%) can yield a corpus of Rs16.5 lakh. Lady Stark teaches how to play along with adverse events, volatility and market developments and not exit your investments in panic.
Take the crown
Like Mr. Snow, most of us know nothing when we start investing. Over the years, however, he is among the first to realise the dangers facing Westeros and acts accordingly to avert danger. However, when chaos truly arrives, he backs off. Chaos comes as volatility in the markets. You may be tempted to exit just like Mr. Snow, but use volatility as a ladder to make it big. Sample this – in the months leading to the election D-Day, volatility rose to record highs, prompting many investors to sell. Yet, after the event passed, the Sensex and the Nifty scaled new peaks. The key, therefore, is to rebalance your portfolio when times are wrong and take the crown, unlike Mr. Snow.
Emotions can burn ‘em all
From Maiden to Mad Queen, the Mother of Dragons came a long way toppling kingdoms and ruling new ones. All the way, she gained power, knowledge and the respect of the masses. In the markets, you grow with each experience, learn to be unburnt by losses and your moves grow mightier as your portfolio grows. But, in the end, remember that the markets humble us all. Not even the Khaleesi could rule with fire. Letting emotions rule your investments can just be the one wrong move that burns your painstakingly-built portfolio.
Analyse and commit
Call him the Imp or any other name, but the only surviving Lannister thinks and he knows things. Well, he makes mistakes like the next person, but manages to survive through courage and wit. The markets will throw you about with every wave and fall, but to stay afloat like l’il Lannister, you should analyse market situations and trends keeping the realm’s (portfolio’s) benefit in mind. Stay cool and beat the benchmark.
Stick to your oath
The Lady of Tarth is fierce, but also loyal to a fault. Each stock or mutual fund you invest in may not survive the ups and downs of the market like all the lords Lady Tarth served. In the end, she keeps her oaths. In the markets, all you must do is swear to stay invested for the long term, no matter which stocks or funds you pick through the years. Do this and you might end up as lord commander of a strong, well-built portfolio.
Do the dance
In one word, the Night King’s slayer is just fearless. Choosing swordplay over the comfort of dolls and gowns, the young Stark goes to any end to seek justice for those who harmed her. That’s exactly you must do in the markets – take every step with a pinch of risk. No matter volatility, uncertainty or doomsday predictions, the ability to understand risk and learn from it helps you break new frontiers in the market and find new opportunities to invest in…without fear.
Finally, every good King or Queen needs a Hand to serve them well. So ensure you appoint a suitable investment advisor to help you rule your kingdom of investments wisely. So, Seven Blessings…or rather Seven Insights to you.
All men (and women) must invest!
(By Gautam Kalia, Head–Investment Solutions, Sharekhan by BNP Paribas)
(Disclaimer: Use of names and terms is only to build context and not for any commercial purposes. Also, the views expressed herein are the author’s personal views.)