This Guru Purnima Learn Financial Lessons from Best Mentors

No matter how old you become, at one point in time, everyone feels the desire for a guru since no one is born with absolute enlightenment. A guru is someone who fills this void within with the extensive knowledge and skills they have accumulated through the years.

Guru Purnima is the perfect day to express gratitude to gurus or mentors. After all, their blessings usher in the light of knowledge and drive out the darkness of ignorance. Every Industry has a mentor, and the Investing industry is no different. In addition to serving as a source of all types of wisdom, they illuminate trends and point the way forward in a favourable direction or warn of the grave repercussions of particular acts.

They essentially instruct and even educate. Such "Guru Gyan" can be extremely lucrative for beginners. So, if you are trying to find reliable mentors in the investment industry, you've stepped on the right post. This article takes you through the importance of wealth creation, top investors to follow, and some useful investing tips to follow.

The Importance of Wealth Management

Do you have any long-term objectives, like preparing for retirement, purchasing your ideal home, or paying for your child's further education? Or do you have short-term objectives, such as purchasing a car?

Having a wealth-building strategy might help you get closer to accomplishing whatever goals you have. Building money using various financial instruments to experience high growth is referred to as wealth creation.

It is important for the following reasons:

• For methodical financial accumulation
• To guarantee a consistent Income stream
• To be independent even after retirement

A person is capable of having several wealth-building goals with various time horizons. You can choose an appropriate approach, such as investing in online Mutual Funds, gold, or fixed deposits, based on these variables. However, most individuals don't know where to begin when it comes to the realm of investment. Fortunately, wise veteran investors and the leading investment influencers can offer advice.

Best Investment Mentors in India

On the auspicious occasion of Guru Purnima - a day devoted to honouring and appreciating mentors and their teachings - here is a list of the best financial investment gurus to help you choose the best.

1. Rakesh Jhunjhunwala

A renowned trader and investor, Rakesh Jhunjhunwala has underlined the need for maintaining discipline in one's trading tactics and the skill of taking controlled risks. He is often known as 'The Warren Buffet of India".

Rakesh Jhunjhunwala, the son of an income tax officer, began trading stocks after completing his Chartered Accountant degree. He made his first investment of just Rs 5,000 in 1985, and as of 2021, he has a significant Net worth of over INR 41,000 crores. He has made substantial wealth via stock trading and investment, which serves as motivation for everyone who aspires to succeed on the Indian Stock Market.

Why should you follow him?

• If you are an active trader
• Searching for better opportunities to gain profit
• You believe in India's consistent growth

"Mistakes are your learning companions; the idea is to not repeat these mistakes." - Rakesh Jhunjhunwala

2. Vijay Kedia

Indian investor Vijay Kedia, based in Mumbai, has been trading since he was 19 years old. He was mentored by Rakesh Jhunjhunwala. There are 15 stocks in his Portfolio, which has a current value of INR 532 crores.

Vijay Kedia has given some wise words from "Rocky." Cash in hand is always important. liquidity is the capacity to fulfill commitments when they become due without suffering unacceptable losses. All traders need to know how to predict market trends if they haven't already mastered it. Trends act as your friends. It is totally up to the trader to take advantage of particular market movements and devise a strategy to make the most of them.

The next lesson is to avoid getting attached to your investment. To be realistic is the goal. It may not be a good idea to stick with a firm just because you feel an emotional connection to it or because it was your first successful investment. Always persevere with a venture that has the potential to succeed and increase your financial fortune.

Why should you follow him?

• Believe in unique investing strategy - SMILE (Small in size, Medium in experience, Large in aspiration and Extra-large in market potential) principle
• To understand the trial and error method
• Learn from observations

"Investing is a business, investment is a project and investor is a promoter.” – Vijay Kedia

3. Radhakishan Damani

The biggest stock market investor in India and the proprietor of D-mart is Radhakishan Damani, popularly known as "Mr White and White" due to his subtle attire. He also happens to be the mentor of Rakesh Jhunjhunwala.

RK Damani's strategy is simple and clear: Invest in reputable businesses for the long term. Prior to making an investment, consider the company's future possibilities, and only do so if you believe that the product has great promise for the future. As of September 2021, his portfolio net worth is around INR 23100 crores.

Why should you follow him?

• To learn how to make your own judgements
• Always understand the future prospects of the company
• To learn product potential

"Trading will help you to obtain the Capital and investment will help you to grow it.” – Radhakishan Damani

4. Raamdeo Agrawal

Another prominent stock market investor in India is the co-founder of the Motilal Oswal Group. His current net worth is around INR 1200 cr. Raamdeo Aggrawal's investing strategy for the past 30 years has been focused on QGLB: quality, growth, longevity, and bargain value of a firm.

After 30 years, I finally realized that the Economic Moat is the investment tenet, said Raamdeo Agrawal. He advises investors to conduct thorough research on the stock before investing and advises them not to base their decisions simply on market trends.

Why should you follow him?

• For a unique investing strategy
• To learn about researching market trends
• Understanding investing mantra, i.e. economic moat

"It is not necessary to do extraordinary things to get extraordinary results.” – Raamdeo Agrawal

5. Ramesh Damani

Ramesh Damani is an investment guru and one of India's top stock market investors. Ramesh initially intended to pursue a profession as a stockbroker. Later on, he realized how much he enjoyed selecting profitable stocks and changed to investing for the long term. His current portfolio is worth INR 590 crores.

His approach to investing is clear-cut and straightforward to comprehend. He advises against investing for short-term gain since he is a long-term investor. Additionally, he advises everyone to clearly define their exit strategy before investing in any stock. Further, he says, the market's Economy is difficult to anticipate, but if you have done your homework on the stock and have a solid plan in place, you can easily make profits.

Why should you follow him?

• For long-term investment strategy
• To understand exit strategy
• Better market research

"One iron rule of finance that I have learnt: you always regress to the mean. Theoretically, the bull market is still intact. And there are bargains in the mid- and small cap end of the market.” – Ramesh Damani

Tips for Better Savings

Savings are a crucial part of existence. Often, your short-term enjoyment takes precedence over your long-term aim of saving. If you are stuck with the same, here are some tips to stop periodic withdrawals from your Savings Account and keep a substantial amount away for rainy days.

1. Re-create Your Budget

Saving money each month can greatly increase if you take the time to track your expenditures each month and modify your budget accordingly. It will help you understand your expenses as well.

2. Create Emergency Fund

Making an emergency fund will enable you to tackle unforeseen costs that your savings account had previously handled, such as car repairs or medical expenses.

3. Separate Savings Account

Opening a separate savings account with a different Bank can slow down your access to money. When you are required to transfer the money manually and wait for the transfer, your access to money will slow down. This can help reduce impulsive purchases, but you can still access the funds if necessary.

4. Say No to Online Payment

No doubt, online payment mode has made lives easier, but it has also increased spending habits. The best solution is to switch to cash-only transactions so as to monitor the expenses. You can also set up auto-debit for bills and saving contributions.

5. Reward Yourself

Rewarding yourself when you achieve a financial goal is another method to resist dipping into your money. To get going, start with tiny prizes that help you gain momentum. As you get momentum, spread them out and reward yourself with bigger gifts.

6. Additional Income Source

If your basic monthly costs require you to delve into savings, you need to find additional sources of income. It could be simpler to save if your salary increases. Getting a second job that pays well might also help you with cash flow for any little situations that might arise.

Takeaway

Any investor trying to carve out a place in the trading sector would find it quite beneficial to learn from the principles of well-established names in the industry. So, absorb all of their deep knowledge, and apply it to your own situation. However, one thing to keep in mind is that what worked out for them may not necessarily make you rich as well. So, instead of blindly following their tips, study and conduct in-depth research to determine which mantras are most effective for you. Start learning, express gratitude to everyone who has illuminated your path, and don't forget to be your own guru.