5 Best Money Management Lessons From Narendra Modi
#2. Do away with the clutter
When Modi took charge as Prime Minister, he made it clear that he hated clutter of any sort and thus began the “cleaning drive” beginning with the government officials. The Prime Minister even made it clear that presentations had to be clear to the point to bring out the important issues to light. Likewise, when it comes to financial portfolios, there shouldn’t be heavy investments which will cause confusion. If possible, there should not be as many as 12 to15 stocks in your portfolio. If the portfolio is too large, a thorough check has to be done to see if a diversification is required and by all means, the investments should be distributed among various asset classes.
#3.Underperformers should go
The Prime Minister claims that he has no tolerance for a slack attitude. Each member of his Cabinet and the government officials should be up to date regarding the office schedule. Otherwise, heads will roll, as he has clearly communicated. When the economy is weak and taxes shrink then it is the perfect time to get rid of the underperformers. It is not a good idea to hold back the underperforming stocks in your portfolio forever, and also the mutual fund schemes. If a scheme is frequently underperforming as per the set target, it is time to sell out and set out the funds away.
