8 financial yogic asanas to manage your finances well

An asset allocation strategy that factors in age, goals, horizon and risk appetite will lend the right balance to your investment plan .

If you are looking for an effective remedy for all your money ailments, then you must try practising these asanas to achieve financial nirvana.

1. SIPasana With markets close to all-time highs, investing small sums systematically, rather than in a lump sum, is the way forward.

How it helps Sticking to goal-oriented SIPs in large and multi-cap equity funds will yield benefits over the long-term. Your systematic approach will help you  ..

2. Shed the flabhaati Diversification can mitigate risks, but a bloated portfolio of 15-20 funds will not help your cause. In all probability, several of the schemes will hold similar stocks, thus not adding any value.

How it helps

3. Asset allocationasana An asset allocation strategy that factors in age, goals, horizon and risk appetite will lend the right balance to your investment plan.

How it helps Meticulously following the strategy and rebalancing at regular intervals to ensure the mix is not altered will help prevent losses, book profits and keep you on track to achieve your goals.

4. Contraasana Retail investors often make the mistake of entering when markets are high and exiting in panic when they start tanking. Do not stop SIPs when markets totter or load up on equities when they head skywards.

How it helps Investing systematically as per your plans, long-term goals and risk appetite will yield better results than letting market movements and herd mentality misguide you.

5. Budgetasana Your requirements may be many, but devise a monthly budget, prioritise needs over wants and ensure savings. Set aside 50% of your post-tax monthly income towards basic needs, 30% towards savings and wants can account for 20%.

How it helps Adhering to a well-devised budget can rein in the tendency to overspend on discretionary items and keep the focus on important goals

6. Diversificationamaskar A well-rounded portfolio is your best bet for achieving all your long- and short-term financial goals.

How it helps When you put your eggs in more than one basket, you spread risks and cushion the adverse performance of one asset class or a few instruments.

7. Taxasana Wrong postures can harm, rather than help. Likewise, while filing returns, follow the rules meticulously and complete the process ahead of the deadline to avoid errors. Seek professional help if needed.

How it helps Filing income tax returns is an unavoidable activity, which is also complex in nature. Completing it well in time will reduce the hassles and scope for errors.

8. Relaxasana Don't stray from your financial plan, take risky short-cuts or bend rules. Prioritise your retirement over goals like children's higher education and marriage.

How it helps The sum total of these financial asanas, practised as required, can lead to attainment of all goals and thus a state of bliss at retirement.

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