A testament of financial discipline over stock market investment.

As per the old school learning, we should have a diversified portfolio to create an enormous wealth. We grown up following and listening to this logic. People often chose different options to invest their money. A diversified portfolio minimizes the risk of losses. To create substantial wealth, a diversified portfolio including Fixed Deposits alongside other investments is usually recommended. However this logic does not stands true for one of the Indian economic reformer and our ex-Finance / Prime minister Late Sri. Manmohan Singh. He always preferred the traditional approach of investment to create wealth. It was insane to learn that he always avoided Stocks Market.

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While Fixed Deposits (FDz) can contribute to wealth creation by providing a safe and stable way to grow our savings, they are generally not considered the primary tool for building significant wealth on their own due to their relatively low returns compared to riskier investment options like equities. Ever since stock market started to boom I have seen huge amount flowing into the market. Stock market has been a money making play ground for many investors. But not for the one who looked after finace ministry of the largest democracy of the world. Dr. Manmohan singh served as the nation's Finance Minister and later as Prime Minister for two terms. He does not want to lose the sleep over the stock market. But he was the one who reforms Indian economy in 1991.

Yesterday, Dr. Manmohan Singh, the visionary behind India's 1991 economic reforms, has passed away at the age of 92. His policies opened the gates for India's financial growth, transforming the stock market and economy. A true legend whose legacy will inspire generations of investors.

Manmohan Singh's reforms as finance minister in 1991 helped India overcome an economic crisis. His policies reduced government control, liberalized the economy, and encouraged foreign investment. - Sourced.

While reading an article, I learned about his liking towards the traditional low-risk financial tools like fixed Deposits and post office schemes for investment. He has multiple Fixed deposits and Post office savings scheme in his name. The ability to sleep peacefully was a luxury he valued more than high-risk investments instrument. Often referred to as the "Sardar of the Indian Economy", Dr. Singh possessed an unparalleled understanding of finance. He belive in disciplined approach when it comes to investments.

as per the article, he invested INR 2 Cr in three FDs. Over three years, these grew to INR 2.62 Cr, which he reinvested. Within six years, his wealth grew by INR 4 Cr without venturing into the stock market his wealth increases significantly.

Compared to stocks or mutual funds, FDs typically provide lower interest rates, which may not keep pace with inflation over long periods, potentially hindering significant wealth accumulation. FDs offer a secure way to store our money with guaranteed returns, making them suitable for conservative investors seeking stability over high potential gains. Still Dr. Singh, ensured that his investments were secure and stress-free through a discipline investment schedule towards the traditional instruments.

Economists typically build wealth through their professional expertise, and seems he knows what could help him in creating wealth ensuring peace of mind.

Peace!!

Namaste @steemflow

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