Posted On Tuesday, Apr 02, 2019
Gandhiji once said, "There is no God higher than truth". The two main pillars of his enduring philosophy were truth and non-violence. Gandhiji strictly maintained that the concept of truth is above and beyond all other considerations and that one must unfailingly pursue truth throughout one’s journey.
His approach to life and all of its myriad problems was simple - to handle every situation with truth and non-violence. He believed that it is not only important to be truthful and honest to society, but also to be true to self. In recognising one’s true self is victory. Gandhism is not necessarily about what Gandhiji considered to be true but rather about the spirit of Gandhiji’s journey to discover the truth. Gandhiji said: "The Truth is far more powerful than any weapon of mass destruction." Truth or 'Satya' was the governing principle of Mahatma Gandhi's life to which was tethered all his ideas and actions. Gandhiji's life was an eternal conquest to discover truth and his journey to that end was marked by experiments on himself and learning from his own mistakes. Fittingly his autobiography was titled 'My Experiments with Truth.'
Truth in the New Millennium
Gandhiji was easily "a man of the millennium". This is because his philosophy for life is not only relevant today but is applicable to many facets of one's life. The financial services industry is built on a bedrock of trust and honesty. When a contract is drawn or a product is sold, there is an implicit understanding that the two parties to the contract are honest or the product that is being sold is “true to label”.
The "True to Label" Philosophy
When it comes to your hard-earned money, you deserve financial products and services that are honest and deliver on the promised commitments. For example, when you invest in a mutual fund , you would expect the scheme to stay true to the promised style of investment. Any deviation from that which has been promised can derail your investment journey and have an impact on your ability to reach your investment goals. When you start your investment journey, the first thing that you do is determine your ability to take risk and the returns required to reach your goals. Thereafter, you create an asset allocation strategy that is designed to help you meet your investment objectives. As an investor, you can maintain your portfolio’s asset allocation only if your investment avenue remains true to its portfolio construction. A fund is selected for a portfolio based on its style and potential risk/return metrics.
In addition to being honest about portfolio construction, fund houses should also ensure that they are transparent and that they keep their communication simple and accurate. An honest communication is one in which there is no room for doubt and everything is simple and easy to understand. As we all know, honest and open communication is the thread that holds a healthy relationship together.
Investment firms need to respect their investors' choice and empower them to make the investment decisions that suit them the best. This is only possible if they create honest funds that remain true to label and communicate in a truthful and simple manner.
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.
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