scorecardresearchInternational Yoga Day: Risk management is a crucial aspect of yoga and

International Yoga Day: Risk management is a crucial aspect of yoga and investing, says Alok Agarwal of ICICI Lombard

Updated: 21 Jun 2023, 09:59 AM IST
TL;DR.

In an interview with MintGenie, Agarwal said that diversification is a risk-management strategy common to both yoga and investing.

Alok Agarwal, Executive Director, ICICI Lombard

Alok Agarwal, Executive Director, ICICI Lombard

Both yoga and investing foster a sense of responsibility towards oneself and one's future, setting a solid foundation for a fulfilling and prosperous life, says Alok Agarwal, Executive Director, ICICI Lombard.

In an interview with MintGenie, Agarwal said that both yoga and investing empower us to take control of our lives, promoting holistic well-being and a sense of fulfilment.

Edited Excerpts:

Q. What similarities do you find in practising the knowledge of yoga and personal finance?

The practice of yoga and the realm of personal finance may seem distinct at first glance, but they share some striking similarities. Both require a disciplined approach and a strong foundation of knowledge. Just as yoga involves understanding the body’s mechanics and alignment, personal finance necessitates understanding financial principles and strategies. Both areas also emphasize the importance of balance. In yoga, we seek physical and mental balance, while in personal finance, we strive for a balanced portfolio and financial stability. The principles of discipline, knowledge, and balance are fundamental to both yoga and personal finance, making them interconnected in unexpected ways.

Q. Yoga and investing both involve managing risk. What risk-management strategies are common to both?

Risk management is indeed a crucial aspect of both yoga and investing. In yoga, we learn to listen to our bodies and respect our limits to prevent injury. Similarly, in investing, we must assess and manage risks to protect our financial well-being. Diversification is a risk management strategy common to both. Just as we incorporate a variety of yoga poses to engage different muscles and avoid strain, diversifying investments across different asset classes helps mitigate risks and protect against market fluctuations. Additionally, maintaining a long-term perspective and avoiding impulsive decisions is essential in both yoga and investing to minimize the negative impact of short-term volatility.

Q. Yoga and investing both encourage a long-term perspective. What are the benefits of dabbling in both of them early in life?

Engaging in both yoga and investing early in life offers numerous benefits. Both practices promote discipline and patience, which are valuable qualities for long-term success. By starting early, we have more time to develop our skills and knowledge in both areas. In yoga, consistent practice over the years leads to increased flexibility, strength, and overall well-being. Similarly, starting to invest early allows for the power of compounding to work its magic, enabling wealth accumulation and financial security in the long run. Moreover, both yoga and investing foster a sense of responsibility towards oneself and one's future, setting a solid foundation for a fulfilling and prosperous life.

Q. Yoga is often seen as a tool for personal growth. Investments are seen to enhance financial strength. How do you corroborate the two?

Yoga and personal growth are closely intertwined, just as investments can enhance one's financial strength. Yoga provides a platform for self-reflection, self-discovery, and personal transformation. It helps us develop resilience, mental clarity, and emotional well-being. Similarly, investing strategically can lead to financial growth and stability. By making informed investment decisions, we can build wealth, create financial security, and achieve our long-term goals. Both yoga and investing empower us to take control of our lives, promoting holistic well-being and a sense of fulfilment.

Q. What are the approaches followed in yoga that can't work in managing personal finance?

While yoga offers valuable insights and practices, some approaches may not directly translate into managing personal finance. For example, in yoga, we learn to let go of attachment and detach from outcomes, embracing the present moment. However, when it comes to personal finance, it is essential to actively engage and make informed decisions based on our goals and financial objectives.

Additionally, yoga emphasizes self-care and finding inner peace, while personal finance requires objective analysis, risk assessment, and financial planning. While there may be overlapping principles, it is crucial to adapt and apply the appropriate approaches from yoga and personal finance to the respective areas for optimal results.

 

Article
A diversified portfolio neatly divides your assets into more than one asset class in order to reduce risk and maximize profits.
First Published: 21 Jun 2023, 09:59 AM IST