Embark on your investment journey with a clear head, a steady hand and a calm heart

“Nivesh-Nivesh Tabhi Tak Hai, Jab Tak Dhairya Se Rakhte Hain;

Nivesh Karen Aur Prati Din Dekhen, Satta Isi Ko Kahate Hain.”

Translation: It’s an investment only till it is held with patience, devoid of any temptation.

If you invest and track it every single day, then it becomes speculation.

In the bustling marketplace of our lives, two paths diverge: investment and speculation. One, a steady climb guided by wisdom and patience, leads to lasting prosperity. The other, a treacherous rollercoaster fuelled by impulsiveness and greed, often ends in heartbreak. Today, we embark on a journey down the investment path, seeking the timeless wisdom offered by ancient texts and modern masters, all the while remembering the crucial ingredient: patience.

Let us first heed the whispers of the past.

The Rig Veda exhorts, "May we obtain wealth through righteous means, for wealth righteously gained prospers both giver and receiver." (Rig Veda 10.191.2).

This verse underscores the ethical foundation of true investment, reminding us that prosperity built on greed crumbles quickly.

The Yajur Veda chimes in, "May prosperity come to us through knowledge and steadfastness." (Yajur Veda 40.8)

Here, the emphasis shifts to knowledge and perseverance, highlighting the importance of understanding the market and holding firm through its inevitable ups and downs.

The echoes of these ancient truths resonate in the voices of modern masters.

Charlie Munger, known for his value investing approach, advises, "Invest in a basket of businesses you understand, with a future you believe in."

This isn't about chasing hot fads but about seeking diverse, well-established companies with strong fundamentals and long-term potential.

Peter Lynch, championing the power of time, reminds us, "Time in the market beats timing the market."

Resist the urge to jump in and out based on short-term fluctuations; trust the power of compounding and stay invested for the long run.

And finally, Warren Buffett, the oracle of Omaha, offers a paradoxical gem-Be fearful when others are greedy and greedy only when others are fearful.

Don't be swept away by market frenzy but capitalize on opportunities when fear drives down prices.

Let's illustrate these principles with a real-world example. Imagine investing in the broad-based Nifty 50 TRI index in 2003, based on a belief in the long-term potential of the Indian economy (Munger's advice). Over the next 20 years, you would have witnessed periods of market turbulence, tempting you to ‘sell’ because of fear or frustration. However, by holding onto your investment with patience (Rig and Yajur Veda's guidance), you would have reaped a staggering ~14% average annual return, significantly outperforming inflation and fixed deposits (Lynch's time in the market principle). This exemplifies the power of disciplined diversification and long-term investing, showcasing how patience unlocks wealth creation even amidst market volatility.

But mere knowledge is not enough. The Bhagavad Gita, offering invaluable advice on navigating life's uncertainties, resonates deeply with the investor's journey. Its central message - act without attachment to the outcome - applies perfectly to investment. Don't obsess over daily fluctuations; focus on your long-term strategy and trust the process. Remember, Karmanye Vadhikaraste Ma Phaleshu Kadachana: Your right is to action, never to the fruits of action.

However, the battlefield of the market can be a testing ground for our emotions. Kabir, the renowned poet-saint, adds another layer of wisdom: Wealth comes and goes, a fleeting friend; hold onto contentment that will never end.

This verse reminds us that true wealth lies not just in material possessions but in one’s inner peace and a balanced approach to life's ups and downs.

Investing involves calculated risks, not reckless gambles. Remember, while knowledge is power, patience is the key that unlocks the doors to true financial prosperity. Embrace the wisdom of the ancients, heed the advice of the masters and embark on your investment journey with a clear head, a steady hand and a calm heart. The rewards, built on patience and sound principles, will surely follow.

Remember, the path to financial well-being is not a sprint but a marathon. So, lace up your patience, invest wisely and hold tight for a journey fuelled by knowledge and ancient wisdom. It will be a journey filled with learning, growth and ultimately, the sweet taste of success.

(The writer is senior Vice-president, SBI Funds Management Ltd; Translation and text by Vatsal Ramaiya, deputy Vice-president SBI Funds Management Limited)