Successful wealth creation needs sound strategies: Use these 6 military wisdoms to get the edge

As an army officer-turned-personal financial advisor, my journey from the battleground to the realm of investment planning has led me to uncover intriguing parallels between the strategies that drive military triumphs and those that underpin successful wealth creation for Indian investors. In this narrative, I'll weave together my experiences, incorporating Indian wisdom and military maxims, to illuminate a path toward prudent financial decision-making tailored for the Indian context.

In the pages of revered Indian texts like the 'Chanakya Neeti' and the 'Bhagavad Gita,' I've found remarkable wisdom that resonates deeply with both military tactics and investment strategies. Just as Chanakya's astute counsel guided emperors in their pursuits, his insights have profound relevance in our quest for financial prosperity. These ancient teachings offer timeless principles that not only shaped the Indian subcontinent but also hold the power to guide us through the complexities of wealth management.

• Sarvadosha Sammohan

Let's begin with the notion of coordination, which permeates both military campaigns and investment planning. Just as our historical kings engaged in 'Sarvadosha Sammohan' or all-encompassing strategies, where various aspects of governance were aligned, today's investors must harmonise the efforts of financial experts, accountants, and legal advisors. In doing so, they echo the synergy of combined arms operations, where every element contributes to an overarching success. Much like the challenge of uniting diverse branches of governance, aligning financial perspectives can be daunting. However, as in the art of statecraft, selecting the most trusted counsel and weaving their expertise into a cohesive financial plan is key to achieving the mutual goal: your financial well-being.

• The only constant is change

Indian history is replete with instances where strategies had to adapt to unexpected challenges. Just as Prithviraj Chauhan adjusted his tactics in the face of changing circumstances, investors must anticipate and manage unforeseen disruptions. The modern adage, "The only constant is change," is especially true in the world of finance. Economic downturns or personal crises can derail even the most meticulous plans. Here, the lesson of adaptability stands strong. Being prepared to recalibrate, maintain realistic expectations, and forge ahead in the face of uncertainty becomes imperative.

• Victory goes to him who has the last reserve

Drawing wisdom from Indian strategic thought, we encounter the principle of 'Sthitha-prajna', the composed mind that remains unswayed in adversity, as elucidated in the Bhagavad Gita. This equanimity mirrors the essence of "Victory goes to him who has the last reserve," attributed to Napoleon. Just as military leaders maintain a strategic reserve, Indian investors must safeguard their liquidity through assets like secure bonds or fixed deposits. These reserves are a financial bastion, essential for weathering unforeseen financial storms. Tempting as it may be to leap into instant investment opportunities, disciplined restraint is paramount, knowing that the critical juncture requiring reserves will inevitably arise.

• He who defends everything, defends nothing

Asset allocation, a core aspect of investment strategy, finds resonance in Indian wisdom. The 'Vasudhaiva Kutumbakam' philosophy, which translates to 'The world is one family,' underscores the importance of harmonious coexistence. Similarly, diversification should be balanced, avoiding overreach that dilutes potential gains. This mirrors Napoleon's maxim, "He who defends everything, defends nothing". Rather than scattering investments haphazardly, prudent investors heed the advice of Indian philosophers: "First reckon, then risk." By assessing risks and diversifying against the most probable outcomes, they strike the equilibrium between security and growth.

• Atmavan Manyate Jagat

Delving into the Indian concept of 'Karma', we uncover the relevance of focused equity positions within investment portfolios. Just as concentrated effort yields greater results, well-targeted investments can amplify returns. However, the principle of diminishing returns holds true in both warfare and finance. Investment strategies become less effective as their popularity rises. Hence, Indian investors must embrace innovative approaches while steering clear of herd behaviour. In this, they echo the ancient wisdom of 'Atmavan Manyate Jagat'-a man sees the world as he is.

• Nishkama Karma

Ultimately, the Indian philosophical outlook provides a holistic perspective on investments. The principle of 'Nishkama Karma', performing actions without attachment to outcomes, resonates powerfully. Just as investment portfolios are a means to financial ends, they gain purpose through the aspirations they fulfil. Wealth, in itself, is not the ultimate goal but a facilitator of life's objectives-be it education, retirement, or humanitarian endeavour.

In this journey from the annals of Indian history of warfare to the modern world of investments, I've shared insights garnered from both disciplines. Drawing upon my experiences as an army officer and a personal financial advisor, I invite Indian investors to embrace these strategic gems. Just as legendary kings navigated the challenges of governance with sagacity and vision, so too can you navigate the financial landscape with wisdom and prudence.

The battlefield of wealth creation is a realm where timeless wisdom and informed decisions pave the way to lasting prosperity.

(The author is Certified Financial Planner (CM), CEO, Hum Fauji Initiatives.)