What Lord Ganesha teaches us about SIPs, diversification, wealth building

From SIPs to diversification, here are 5 money lessons inspired by Ganesha's wisdom.

 

As India celebrates Ganesh Chaturthi, financial planners say the symbolism of Lord Ganesha offers timeless lessons for wealth creation. Anant Ladha, CFA, CA, CFP, LL.B. and founder of Invest Aaj For Kal, has drawn parallels between Ganesha’s attributes and good investing habits in a post on LinkedIn. Here’s how investors can apply these in real life:

 

1. Start Small, But Stay Consistent

Ganesha’s mouse, his small yet persistent companion, signifies that even modest investments can grow into something substantial.

 

 Example: Someone starting a SIP of just ₹2,000 per month in an equity mutual fund could build a corpus of nearly ₹20 lakh in 20 years, assuming a 12% annual return. That’s the power of consistency—small steps leading to big results.

 

"The mouse is a small creature, but it is also very persistent. It represents the importance of starting small and investing regularly. Even if you can invest only a small amount each month, it will add up over time. You can start small by investing in a Public Provident Fund (PPF) or mutual fund systematic investment plan (SIP). These instruments offer great returns and are a good way to build a robust corpus over time," said Ladha.

 

2. Do Your Homework Before Investing

Ganesha’s large head symbolizes wisdom and foresight. Ladha says investors must research risks and returns before committing money.

 

 Example: Before investing in a hot IPO or cryptocurrency, compare it with safer instruments like index funds. A 2021 IPO frenzy saw many first-time investors lose money because they followed hype instead of fundamentals. Consulting a SEBI-registered advisor or using SEBI’s Investor Charter could help avoid such mistakes.

 

3. Think Long-Term

Ganesha’s trunk, a symbol of patience, mirrors the need for long-term investing.

 

 Example: If you had invested ₹1 lakh in the Nifty 50 index in 2003, it would be worth over ₹20 lakh today, despite multiple crashes (2008, 2020). Investors who stayed invested reaped rewards through compounding and market recovery.

 

"The stock market can be volatile in the short term, but it has historically provided upward returns in the long term. Also, when you invest over the long-term, you can harness the power of compounding, which will help grow your wealth over time. Equity mutual funds invest in a basket of stocks, which helps in reducing risk. Also, over a long period, they can give returns that beat inflation," said Ladha.

 

4. Diversify Your Portfolio

With his four arms, Ganesha teaches balance and diversification. 

 

 Example: In 2020, during the COVID market crash, investors who had only equities saw their portfolios halve. But those who diversified with gold (which rose 25% that year) and debt funds cushioned their losses. A balanced mix across stocks, bonds, gold, and real estate lowers overall risk.

 

"This will help in reducing overall risk. Sometimes when the equity markets are performing very well, one may be tempted to invest all their money in equity. But this can be a mistake, as a sharp correction can lead to huge losses," said Ladha.

 

5. Be Patient, Don’t Panic-Sell

Known for patience, Ganesha inspires calmness in chaos.

 

"The stock market will go up and down over time, but it has historically provided upward returns over the long term. One may lose money by selling in duress during market downturns. It is important to remember that short-term volatility is normal, and that the market will recover over time," said Ladha. 

 

Example: During March 2020, when markets fell 35%, many investors exited in fear. But those who stayed invested in mutual funds saw markets recover within a year—delivering one of the fastest rallies in history. Selling in panic locks in losses; patience preserves wealth.

 

As families bring home Ganesha idols this festive season, Ladha says investors can also invite wisdom and discipline into their portfolios. “Ganesh Chaturthi is not just about rituals—it’s also a reminder that perseverance, balance, and patience lead to prosperity,” he adds.