Mythology to Money: Financial Wisdom from 5 Ancient Stories & Rebalancing Lessons (Asset Rebalancing – Part 2)

From Epics to Economics: Surprising Lessons Hidden in Ancient Stories

We often look to financial gurus and market experts for advice on investing. But India’s greatest teachers may not always sit in boardrooms. Sometimes, they speak to us through stories we grew up listening to stories that carry deep truths, not just about life, but about money too.

One of the most important lessons in personal finance is the idea of portfolio rebalancing, adjusting your investment mix regularly to stay aligned with your goals. And as you will see, our ancient stories have been teaching us this all along.

Let us reflect on five powerful tales from Indian traditions, each shedding light on the timeless importance of balance. Just like in life, too much tilt in one direction in your financial portfolio can lead to painful consequences. These stories show us why we must rebalance our investments just as we must rebalance ourselves, at the right time.

Missed Part 1? You can read it here: What My Mother’s Garden Taught Me About Smart Investing and Asset Rebalancing.

Mythology to Money: Money Vichara

1. Lakshmana Rekha: Don’t Run After Illusions, Don’t Step Out of Safety (From Ramayana)

In the Ramayana, Sita once saw a beautiful golden deer near the forest where they were staying. It looked magical and rare - something no one had ever seen. She asked Rama to catch it for her. But what Sita didn’t know was that it was not a real deer, it was a trick by Ravana. Rama went after it, and from there, things started going wrong.

This part of the story reminds us of something important: we should not run after things that just look good from the outside. Like the golden deer, some things are just illusions, unrealistic and risky.

After Rama left, Lakshmana was still there to protect Sita. Before he went looking for Rama (at Sita’s request), he drew a glowing line around their hut the Lakshmana Rekha. He told her clearly, “Don’t step outside this line, no matter what happens.” But when Ravana came in the form of a poor sadhu asking for help, Sita felt it was wrong to refuse. She stepped out to give him food and that one step changed everything.

This teaches us another lesson: never cross the limits that are meant to protect us. Whether in life, relationships, or money matters, some boundaries are there for our own safety. Breaking them even for a small reason can lead to big problems.

In investing, the Lakshmana Rekha is your planned asset allocation—say, fifty percent equity and fifty percent debt. It is your line of balance. But as equity markets rise, we get tempted. “Why not make it seventy percent equity?” we ask. We forget the risk. We ignore the warning.

Just like Sita’s one step had massive consequences, ignoring rebalancing for even a few years can undo years of savings. When markets fall sharply, an unbalanced portfolio offers little protection. Staying within your designed boundaries may feel boring, but it keeps you safe.

This story is a perfect metaphor for financial discipline. Every investor should have a planned asset allocation based on their goals and age. That plan is your Lakshmana Rekha. But when markets rise and your equity portion grows, the excitement tempts you to cross that line. You start believing the good times will last forever. You stop rebalancing. And when the market suddenly crashes, you find yourself vulnerable just like Sita. Rebalancing is your sacred line. Crossing it might bring short-term thrills, but long-term pain.

2. Abhimanyu and Chakravyuha: Know How to Enter and Exit (From Mahabharata)

Abhimanyu, the brave son of Arjuna in the Mahabharata, knew how to enter the deadly Chakravyuha war formation. But he had not learned how to exit it. Once inside, he fought valiantly, but without an exit strategy, he was surrounded and eventually killed

This story mirrors what happens when investors enter the stock market during good times when prices are rising, and confidence is high. Everyone knows how to enter. But very few know when and how to exit or adjust.

A portfolio that grows heavily in equity during a bull run may look successful. But if not rebalanced back to a safer mix, it may become dangerously exposed. When the market changes direction, the investor like Abhimanyu gets trapped.

Rebalancing is your exit strategy. It teaches you to pause, review, and reset. It is not about avoiding risk, but about not being overpowered by it.

3. Chanakya’s Wisdom: “Ati Sarvatra Varjayet” – Too Much of Anything is Dangerous

Chanakya, also known as Kautilya, was one of ancient India’s most brilliant minds. In his book Arthashastra, he advised kings on governance, economics, and diplomacy. He always emphasized strategic balance never putting all power or wealth in one place.

One of his most famous teachings is: "Ati sarvatra varjayet" which means, “Excess of anything should be avoided.”

This applies beautifully to investing. When equity performs well, we may feel like putting all our money there. But that is excess. It is tempting, but dangerous. Chanakya would call this an emotional mistake, not a strategic one.

He would advise you to diversify, and more importantly, to review that diversification regularly. Markets change, and your financial “kingdom” must be protected with timely adjustments. Rebalancing is your act of diplomacy with your own money it keeps power (returns) and peace (stability) coexisting.

4. Lord Ganesha and Kubera’s Feast: The Folly of Wealth Without Balance

Kubera, the god of wealth, once wanted to impress Lord Shiva with his grand riches. He invited Shiva and Parvati for a lavish feast. Shiva declined and sent his young son, Lord Ganesha, instead.

Ganesha arrived and began to eat. He ate and ate and ate—everything in sight. The palace food ran out. The storerooms were emptied. Finally, humbled and helpless, Kubera ran to Lord Shiva for help.

Lord Shiva told him, “You fed him to show off, not with love or humility. True wealth lies in balance, not excess.”

Many of us become like Kubera when the equity market performs well. We keep feeding our portfolio with more and more equity, believing it to be the ultimate wealth-builder. We forget moderation. We ignore debt and stability. But when a financial crisis strikes, we find our portfolio deeply unbalanced and our hunger for liquidity, for safety, unmet. Rebalancing helps you remain grounded. It teaches you not to feed your ego, but to nourish your long-term goals.

5. Purusha and Prakriti: The Cosmic Balance of Growth and Stability (From the Vedas)

In the ancient Vedas and Upanishads, the universe is described as a dance between two forces: Purusha, the cosmic consciousness, and Prakriti, the natural world or energy. Neither is complete without the other. When in balance, they create life and harmony. When out of balance, they create chaos.

Your investments too, need this balance. Equity represents Purusha - energy, growth, creation. Debt represents Prakriti grounding, discipline, continuity. If you tilt too much toward growth without stability, your portfolio becomes volatile. If you play too safe, you miss out on life’s opportunities.

Just as nature rebalances itself through seasons, you must rebalance your financial life. Equity and debt, ambition and patience, should not fight but dance together.

Ancient Wisdom for Today’s Wallet

In our daily life, we often think managing money is only about numbers, returns, or following some expert advice. But over time, we realise it is also about how we think, how we stay calm during ups and downs, and how we avoid getting carried away. Just like nature has seasons, markets also go through their own highs and lows. What matters is how balanced we are during all this.

These mythological tales we grew up listening to have so much hidden meaning. They are not only for entertainment or tradition. If we look a little deeper, they quietly teach us about discipline, boundaries, and not running behind illusions.

Balance is not just a strategy. It is wisdom.

These are not just bedtime tales. They are timeless lessons about discipline, balance, humility, and timing qualities every good investor must develop.

Rebalancing may not feel exciting. It does not make headlines. But it is what protects your journey. It is what helps your goals survive market storms and emotional distractions. Each of these stories carries a simple message: do not chase too much, do not freeze in fear, and above all, do not forget balance.

Just as Sita needed her boundaries, and Abhimanyu needed a path out, your portfolio needs its own structure. Just as Chanakya warned against excess, and Lord Ganesha reminded Kubera of humility, your money needs your maturity. And just like the cosmos, your finances too must stay in rhythm.

Next time when we hear these stories again maybe during a festival or from our elders we might smile and think, "This also applies to my money choices." Because in between those ancient words are lessons that are still useful today.

Think twice before chasing the golden deer. Sometimes, the oldest stories carry the most modern lessons. Let us carry these simple but strong lessons with us. May they help us stay steady, make better decisions, and keep our financial life in balance.

In my next posts, we will dive deeper into the different strategies of portfolio rebalancing calendar-based, threshold-based, tactical rebalancing, and more. But before we go there, let these stories sit with you.

From my mother’s garden to mythology...

If you are wondering where this started, go back to Part 1—What My Mother’s Garden Taught Me About Smart Investing and Asset Rebalancing. Who knew tulsi plants and tomatoes could teach portfolio lessons?