India 
There Are Always Two Sides To Every Story
3 Minute Read
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Rohan and Sohan were quarreling in class. Both didn’t even want to listen to each other.
To solve this, the teacher asked Rohan to stand on one side of the desk and Sohan on the other side.
The teacher placed a ball in the center of the desk and asked, “What’s the color of the ball?”
Rohan said white and Sohan said black.
Both answers were different and they again started arguing.
The teacher then asked them to exchange their places and asked, “Now, what’s the color of the ball?”
This time, Rohan said black and Sohan said white.
They were surprised that both were right.
The teacher explained, “This ball has two colors. It looks white from one side and black from the other. Both answers are correct. The only difference is how you viewed it.”
The same analogy applies to investing as well. Just like a ball in the story, investing has two sides – Risk and Returns.
Generally, higher the risk, higher the returns. A prudent middle path between risk and returns is to choose hybrid funds. These funds invest across asset classes like equity, debt, gold, etc and help to balance between risk and returns. Such funds help to lower portfolio downside risk during an equity market fall. The right asset mix results in optimal risk-adjusted performance
About the author
Satish Prabhu is an avid blogger and has written close to 300 blogs on the basics of investing. He prefers the short story-telling format for his blogs and writes motivational life stories which are then weaved to give a message on investing. While content writing is his forte, financial literacy initiatives are close to his heart. He feels that investors can create wealth not by investing more money but by improving their behaviour with money. His stories give the message of patience, perseverance and resilience, the keys behavioral traits to be imbibed by investors. He is greatly inspired by the book ‘Psychology of Money’ by Morgan Housel. You can read all his blogs on his LinkedIn page.
On the professional front, Satish is the Vice President & Head of Content & Direct Customer Engagement at Franklin Templeton (FT) Asset Management (India) Pvt. Ltd since December 2013. Prior to FT, he worked for 8 years with CRISIL Ltd. (a Standard and Poor’s Company) and for over 7 years with the Stock Holding Corporation of India Ltd. (SHCIL).
He speaks at various investor education forums, conducts knowledge sharing sessions, webinars, podcasts for investors, advisors, relationship managers, corporates, among others.
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