I had attended a training programme of Mr. Kishan Sharma on 12t November at Pune. I got the idea of writing this article from that training session only.

NATURE means eternal truth and something which is not in control of human being. Example of NATURE are:

  1. There are 365 days in a year or 12 months in a year.
  2. It takes nine months for a baby to come out of mother’s womb.
  3. There are 4 seasons in a year namely summer, winter, autumn, spring.

CULTURE means something which might be right or wrong but is followed by people because of herd mentality or that’s the way how things are being done.

To further explain the difference between NATURE and CULTURE, I will give two scenarios.

Scenario 1: A tiger is chasing a dear and within a short period of time tiger pounced on the deer and killed him. By watching this scenario you will say “Bechara Deer”.

Scenario 2: A tiger is chasing a deer continuously for 5 days but unable to catch hold of him. Bcz of this two cubs of tiger died due to lack of food. Now by watching this scenario, you will say “Bechara Tiger”.

In scenario 1, you felt “Bechara” for deer but in the 2nd scenario, you felt “bechara” for TIGER. Because it’s a CULTURE in our society to feel “bechara” for the victim.

But in actuality, a tiger killing a deer is NATURE.

Similarly all the financial products have their NATURE but you have been investing in them on the basis of CULTURE. For Example:

1. Stock market by their very nature are quite volatile, risky and give excellent return in the long run. But you have been investing in it for a short term bcz that’s how the culture is.

2. Fixed Deposit are quite safe and a very good investment product for short term because in longer term it cannot beat inflation. But you have been putting money in fixed deposit for a longer term because that’s how the culture is.

3.  Endowment plans by their nature are long term savings product but you have been taking endownment plan assuming it to be a good long term investment product because that’s how the culture is.

The whole idea of writing this article is to make you aware that before investing in any financial product, try to understand it’s nature. Then only invest in it aligning it with your short term/long term financial goals. Never get carried away by the herd mentality or culture.