Financial takeaways from the festival of Makar Sankranti

Each year, in the middle of the month of January, a wave of festive cheer reverberates through multiple states in the country. Makar Sankranti, the harvest festival marks an end as well as a new beginning and true to India’s plurality and diversity, different states celebrate this festival with their unique sets of customs and rituals.

Makar Sankranti heralds the change of season as from this day the Sun begins its movement from Dakshinayana (South) to Uttarayana (North) hemisphere. It is a celebration of the change from a harsher to a milder climate when agricultural production can start thriving and is thus seen as a cause of joy and cheer. Tamil Nadu celebrates Pongal, Punjab celebrates Lohri at this time, Assam observes Bhogali Bihu, West Bengal celebrates Poush Sankranti and Gujarat celebrates Uttarayan.

The significance of Makar Sankranti rituals and customs can also be seen through the lens of personal finance. Here are a few analogies that you can draw as an investor from this auspicious occasion:

The parallels between kite-flying and diversification

One of the most important aspects of Makar Sankranti celebration is kite flying especially in the states of Gujarat and Rajasthan. Kites of all shapes and sizes with eye-catching patterns and embellishments are prepared months in advance and people come together on the day of Makar Sankranti to show off their kites and their kite-flying skills too. It is a spectacle to behold with countless kites of every imaginable colour dotting the skyline.

The tradition of flying kites of innumerable varieties can be considered an analogy for the importance of diversification in the world of personal finance. Just as kite-flying enthusiasts prepare for this day by keeping a stash of kites of different colours, shapes and sizes, so that they can continue flying kites even if a few of them get damaged or their strings cut your portfolio too should have appropriate weightages of different asset classes. This will ensure that you sail through periods of volatility as shock waves through one asset class can be absorbed by another asset class and your capital would not be jeoparidised.

Assets like til and gur – harbingers of health

No Makar Sankranti celebration can be complete without gorging on delicacies made of til (sesame) and gur (jiggery). The inclusion of til and gur in the Makar Sankranti festive menu has its roots in a Maharashtrian culture, “'Til, gud ghya ni god god bola”. The saying is used in Maharashtrian households to greet loved ones during Sankranti celebrations and translates into, “Eat til and gur and speak sweet.”

Til and gur are not only packed with nutrients but goodies made out of til and gur have a long shelf life too. Sweets made of til and gur on Makar Sankranti can be gorged on later also because of the longevity of the core ingredients. In the gamut of personal finances too, star ingredients like til and gur can play a crucial role in maintaining your financial health. Asset classes that can generate stable returns in the long run and protect you from uncertain circumstances - just like til and gur protect your health in the harsh winter months are sacrosanct - for a fruitful financial journey.

Creating the perfect amalgamation just like the Khichdi cooked on Sankranti

The humble one-pot khichdi has a special place in Makar Sankranti celebrations. The classic combination of rice, lentils, vegetables and spices is a staple in Indian diet and is cooked in one pot. The dish has many variations depending on local culinary practices and is nutriotionally rich. Since khichdi incorporates a multitude of ingredients that are cooked in a single pot to create a beautiful meal in itself, the consumption of khichdi with loved ones on Makar Sankranti is considered symbolic of unity and harmony.

In the world of investments too, the goal should be to have a portfolio where the sum of the parts is much greater in value than the individual components. Your portfolio should be aligned with your goals and risk-taking abilities and should there be any changes in your circumstances, your portfolio should account for those too. Just like the ratio of spices, lentils, rice and vegetables can be adjusted to make the perfect khichdi of your choice, your investments should be spread across different asset classes in a way so that it can help you attain your goals and also ensure you sail through difficult situations.

As you celebrate Makar Sankranti with your near and dear ones, do not forget to implement the takeaways from this beautiful festival into your financial plans.