Chasing quick returns, investors sacrifice their own financial security

Subscribe to enjoy similar stories. I recently attended an investment conclave in Ayodhya where, in a keynote speech, Acharya Mithilesh Nandini Sharan Ji shared the story of Bhasmasura as a metaphor for what investors do. It was an unexpected connection, but it was the perfect metaphor for what I see happening to retail investors across India today.

For those unfamiliar with the tale, Bhasmasura was a demon who desperately wanted divine powers. Impatient with the slow path of righteous living, he sought a shortcut through Lord Shiva, known for granting boons quickly to devoted supplicants. To demonstrate his devotion, Bhasmasura performed severe penance.

The particularly gruesome detail that makes this story relevant to modern investing is this: he cut pieces of flesh from his own body and offered them into the sacred fire, progressively mutilating himself in pursuit of divine favour. Pleased by this extreme sacrifice, Shiva granted him a terrible boon--the power to turn anyone to ash by merely touching their head. What happened next is instructive.

Bhasmasura immediately attempted to test this power on Shiva himself. Lord Vishnu intervened by assuming the form of Mohini, who tricked the demon into placing his hand on his own head during a dance. The boon worked perfectly, and Bhasmasura was reduced to ashes by his own power.

Look around at the investment landscape today, and you'll see this ancient story playing out in modern dress. Retail investors, desperate for quick wealth, are progressively sacrificing pieces of their financial security. First goes the emergency fund, which is then invested in futures and options (F&O) trading.