Its impossible that you have not heard about story of Rabbit & Tortoise..Today we will take revision of story with updated version and its compliance with any ones financial portfolio –
Part – I :
Rabbit was very much proud of its speed & one day challenged Tortoise for race.Tortoise agreed as it don’t have anything to loose about.They decided the target and start race.Rabbit was much overconfident & decided to have rest in between and finally tortoise win the race.
Part -II :
Now Rabbit understood its mistake and challenged tortoise once again ,,decided not to make same mistake again.Tortoise agreed but set the condition that it will set the path & target..Rabbit was much confident this time and agreed for it..Rabit though decided not to stop till target is reached,forced to stop as there was a river across the path…Tortoise slowly overtake Rabbit and win race again.
Part -III :
Now disgraced Rabbit understood that every individual have its own customized strengths & weaknesses.He understood its mistake and decided not to have a race..rather join hands with tortoise ..when there was a plain road ..Rabbit used to carry tortoise and across river tortoise used to carry Rabbit.
Rabbit – Tortoise story – Applicable to Portfolio :
Not only Rabbit [Equity] nor alone Tortoise [Debt] can help you to reach the target but one need to have combination of both.If any one understands when to switch over equity [Rabbit] & when to switch over debt [tortoise] – Goal can be easily reached.
If investors are unable to do it then financial planners should adopt this role.They should able to study the surrounding market conditions and help investors to optimise overall returns of the portfolio by re balancing portfolio time to time ..I don’t think -investors will refrain paying for the same ,isn’t it???
Note – Reconstructed story of Rabbit & Tortoise – Published few years back in Times Of India,The Speaking Tree Section.
