I will answer this with a short story, a la Panchatantra. Once upon a time, in the bustling city of “Dhanapur”, there lived a witty and wise sage named “Vivekdhari”. He was famous for his quirky yet insightful advice on money matters. People from far and wide sought his wisdom on wealth management.
One bright sunny day, a young man named “Kunal” visited Vivekdhari. Kunal was a hardworking farmer who had just come into a sizeable inheritance. Unsure of how to protect and grow his newfound wealth, Kunal asked the sage, “Vivekdhariji, what is the safest way of investing money in India?”
Vivekdhari, known for his love of parables, began to tell a tale. He said, “Kunal, imagine you’ve just harvested three bags of seeds. You could sow all three bags in one field, but what if a swarm of locusts descends on that field? You would lose your entire crop.”
Kunal nodded thoughtfully, seeing the wisdom in Vivekdhari’s words.
But the sage wasn’t finished. “Now, suppose you divided your seeds among three different fields. If the locusts come, they might eat one field’s crops, but the other fields would still yield a harvest.”
Kunal started to understand and murmured, “So, different fields can help protect against total loss…”
Vivekdhari smiled, then said, “Exactly, Kunal! The fields represent different investment avenues – like stocks, bonds, real estate, and mutual funds, while your seeds are your money. By spreading your investments across different asset classes, you protect your wealth from any unexpected calamities, just as dividing the seeds protected the crops.”
And then, with a mischievous twinkle in his eyes, Vivekdhari concluded, “But remember, Kunal, don’t just scatter your seeds haphazardly. Do your research, understand the nature of each field, its fertility and suitability for your seeds. It’s about diversification, yes, but also about understanding your investments.”
Kunal thanked Vivekdhari, his mind buzzing with the sage’s wisdom. As the news of Kunal’s conversation with Vivekdhari spread throughout Dhanapur, the parable of the seeds became a popular way of explaining the safest way of investing money in India.
