No Risk. No Rewards.

There is risk in every walk of life, may be small or big. However, you would agree that these risks are calculated or voluntary risks we take and not blind risks. For instance, we would not risk our life for anything unless it is a very desperate situation. Rather, risk here means doing something we have not done before, to derive a reward that justifies taking that risk. Say, taking a new route to work to save time. The reward here may be getting more time to spend with family or more time for hobbies and interests. Hence, it’s not just the risk but a calculated risk that makes the reward worthwhile.

For many, taking a risk around their health includes taking up workout routines that challenge them to improve their overall fitness. However, the risk here is that the body may break down as it pursues enhanced fitness activities. But, if one gets through the pain barrier without any health risks, it opens the door to enhanced fitness and well-being. That’s the reward one gets for their untiring efforts.

Someone who epitomises the spirit of taking calculated risks on one’s health is Praveen Kumar Teotia. A former Navy commando, Teotia served his country with honour and was part of the forces who defended the country against the perpetrators of the 26/11 attacks in Mumbai. During the shootout with terrorists, he was hit by many bullets, which damaged his lungs and impaired his hearing. After undergoing treatment, he was reassigned to desk duty from active deployment.

However, he did not let that deter him from challenging himself. He chose to start running and did that regularly in order to start competing in marathons. His ability to take calculated risks served him well as he was convinced that he had the will and the spirit to undergo the hardships that come through rigorous training, despite the injuries he had suffered while defending the country.

Teotia was awarded the Shaurya Chakra for his bravery and that gave him the courage and strength necessary to continue on the path he had chosen to keep himself physically active. After pulling off an Ironman race in 2018, he was convinced that he had what it takes to accept the challenge of finishing the All-continent Ironman, where he wants to finish in the time limit, he has set himself.

He says everyone should take calculated risks in line as per their responsibilities and abilities, so that they can reap higher benefits. In his case, the reward was finding a sense of purpose in life, after the injuries he suffered while defending the country that made him take up a different role.

Not just in life, risk is part and parcel of investing too. All investments carry some risk ranging from marginal to very high risk. Investments with higher risks also have the potential to provide higher returns. However, one must take calculated risks and can invest to earn potentially higher returns and create wealth. For example, investing in equity mutual funds via systematic investment plans (SIPs) for longer periods of 5 years and above to meet goals is a calculated risk one may take to earn potentially higher returns. One may choose from a variety of options offered by Mutual Funds for different risk appetites and different goal horizons.

Taking calculated risks helps you stay prepared for any eventuality and allows you to reap the rewards for your foresight. It is important to take these risks as only then can you stay a step ahead, be it in terms of your health, life or your investments.

An investor education and awareness initiative by Franklin Templeton Mutual Fund.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.