K.S. Badrinarayanan badrinarayanan.ks@thehindu.co.in

I've been watching markets since the Harshad Mehta era. I've tracked three great bull and three of the worst bear markets since then. My prediction of a market crash in 2008 came true, which thrilled me. Everybody will be more happy if my prediction of a mother of all bull runs comes true by 2013-end or early 2014.

K S Badrinarayanan

Investment lessons from Rajnikanth

| Updated on January 07, 2014


Are you confused about how to build a portfolio in your life span? Help is at hand, from none other than superstar Rajnikanth.

Rajni’s remarkable career is an example of how investors can construct a healthy portfolio.

Thalaivar, as millions call him fondly, made his debut as an actor in 1975 in the National Film award-winning Tamil film Apoorva Raagangal, directed by K. Balachander at the age of 25. That is the age when young people embark on their careers and an ideal time to start saving and managing their investments to achieve their financial goals.

An age-old thumb-rule for investment is that you should focus more on equity when you are young as you are in a position to take more risks. Higher risks always provide higher returns too and that is what one can glean from the superstar’s life.

Take a look at Rajni’s cinema graph: in the initial years he used to be an aggressive actor. On an average, ‘Enthiran’ had acted in 12-14 movies a year between 1976 and 1980.

When you are in your 30s, your priorities change. Focus on children’s education, home loan and insurance is a must as they get you a tax deduction. Also, you must start planning for retirement at this age and include a pension plan in the portfolio. So, it is time to moderate your investments in equity. To draw a parallel, Rajni reduced his strike rate to 7-8 movies a year when he was between 30 and 40 years old.

When one is past 40, the risks should be limited and one must opt for risk-free investments such as bank fixed deposits and other safe debt instruments. Similarly, when one approaches 50, risks should be taken only if it is absolutely necessary, as indicated by Rajni.

He is 63 now and his movie releases have come down to one every three or four years. The only difference between a career and investing, and Rajni is that you retire at 60, but the superstar continues to rock and keep the tills ringing!

Lastly, to imbibe these learnings, sing the ‘Lungi dance’ song from Chennai Express: All the Rajini fans, Thalaiva/ Don't miss the chance, Thalaiva/ All the Rajini fans, Thalaiva/ Don't miss the chance!

Published on January 06, 2014

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