5 financial lessons to learn from Chandrayaan-3

Chandrayaan-3, India’s prestigious lunar mission, has captivated the world. It is a scientific endeavour and an opportunity to learn valuable financial lessons.

Santosh Joseph, Founder and Managing Partner of Refolio Investment said, “The financial lessons that we can learn from Chandrayan-3 is incredible. I use the term ‘incredible’ because you start planning your finances even when you do not see any material benefit right away. In today’s world, you call it instant gratification. In fact, this is a great example of how really long-term projects work. Likewise, there is no limit to how much you can gain financially if you really were to think long term.”

1. Staying updated: This vital aspect can't be ignored, especially in finance. With the ever-evolving finance industry, keeping up with the latest market trends is beneficial. Just as Indian Space Research Organisation (ISRO) scientists had to constantly upgrade their knowledge for Chandrayaan-3, so should any investor or business owner to gain a competitive advantage.

“Some of the great examples are one should know and understand are—Google was happy with its dominance of search engine market and one fine day Chat GPT came and shook Google out of slumber. There are examples abound, where companies couldn’t envisage the competition, new trends or technology and had to go out of business. Hotmail, blackberry, Nokia are all examples of great businesses which went extinct because they weren’t updated with latest trends or customer preferences. In life and in finance, if one is not abreast with latest events, news, technologies – one risks being extinct. Continuous investment in R&D, technology is the only way companies can stay ahead on the curve,” Mohit Gang, CEO of MoneyFront, a subsidiary of Niyogin Fintech Ltd

2. Mitigating risk: Chandrayaan-3 is a venture fraught with risk, its success hinging on several variables. In the same vein, financial investments carry a significant amount of risk. Identifying the potential risks, assessing them, and then developing a risk management strategy are essential. Like ISRO, where the Chandrayaan-3 mission was redesigned after the partial failure of Chandrayaan-2, investors should also be able to manage their investments and adjust their portfolios.

Gang said, “Risk is inherent in everything. Fair and timely assessment of risk is traits which differentiates a successful investor and ordinary investor. All successful investors have a knack of knowing the inherent risk of their portfolio and strategies. They tweak their asset allocations timely, safeguard their portfolios during market euphoria and inevitably enter when markets are dull and down. By buying at right price and right time and diversifying across asset classes, they greatly mitigate overall portfolio risk."

3. Persistence: Despite the unsuccessful landing of Chandrayaan-2, ISRO persisted with its lunar exploration program with Chandrayaan-3. In personal finance, setbacks, such as falling markets, non-performing investments, or economic recessions, can be faced. However, it is necessary to remain persistent, track the progress of investments, and stick to your financial goals.

4. Planning and budgeting: Recognized globally for astute planning and budgeting, ISRO's missions, including Chandrayaan-3, are executed on stringent budgets. This approach is crucial for personal finance as well. Maintaining a dedicated budget can help you save, invest wisely, and achieve financial goals.

5. Long-term orientation: Chandrayaan-3 is a part of India's long-term space exploration strategy. The outcome may not be immediate, and the benefits may accrue over the long run. Similarly, finance and investments should be approached with a long-term perspective. Understand that wealth creation is a slow process and needs disciplined and patient investing. Therefore, to reap benefits, investors should have a long term prospective when investing towards their financial goal.

Joseph explains, "As the saying goes, sky's the limit. Big missions like Chandrayaan-3 prove that if planned well, the sky is not just the limit; it's the beginning of greater things to come. Therefore, even with your finances, many people are worried about getting out of debt, saving money, and investing. But suppose you were to actually get back to the drawing board and work out the science for yourself. In that case, you will be able to aim for those missions on the Moon or Mars, where you will be able to meet the odds, rise against gravity, put up a phenomenal display for the world to know that it can work. Therefore Chandrayaan -3 is a great example of how indigenous efforts made things work. Similarly, if you were to take stock, be disciplined about it, day in and day out, whether you see results or not, whether you see the rocket flying or not and you were to make a plan it will work. To summarize, you have to get to the drawing board to figure out what you want, whether it's Chandrayaan or your financial goals. Your goal, that is, the end result has to be clear."

Chandrayaan-3 is more than a space mission. It is also a repository of financial lessons. Staying updated, mitigating risks, being persistent, planning and budgeting, and maintaining long-term orientation are essential ingredients for financial success.