By: Neerja Caprihan
The United Nations declared 2024 the International Year of Camelids (IYC 2024) .This unassuming creature has been overlooked for too long, despite the quiet difference it has been making to arid hinterlands for centuries. So the Year 2024 will highlight how camelids are key to the livelihoods of millions of households in hostile environments across over 90 countries. 1
Camelids play an important role in advancing the Sustainable Development Goals (SDGs) related to the fight against hunger, the eradication of extreme poverty, and the sustainable use of terrestrial ecosystems. 1
Now, what can investors learn from this?
Plan when the going is good: Camels are known to drink a large volume of water that gets stored in their bloodstream. As a result, they can go several months without water. When food is in surplus, they store it in their humps as a source of future nourishment when there is scarcity.2 It’s a simple and timeless nugget of wisdom – save regularly and put it away wisely. This enables you to plan for the future and meet your financial goals. IA can help you practice this financial discipline with its low fees, low minimums and more importantly, a nifty goal tracker.
Adapt when it isn’t: Camels are known to survive harsh climatic conditions and terrains. And how. They are tough animals that are naturally capable of handling adverse conditions and making the most of the challenges of nature. The markets will not always be in favor. The vagaries of the economic world will never cease. The news and advisories will always sound conflicting. Be ready to think-and-do investments differently. Choose an advisor that enables you to be flexible and empowers you to choose wisely amongst a plethora of options at any given time with minimal fuss or fees.
Diversify at all times: Camelids are community helpers that offer significant livelihood support to several communities. They do this in more ways than one and across the diverse family, be it a Bactrian, or a dromedary camel, or a llama or an alpaca. While the concern for world poverty as highlighted by SDG 1 is significantly profound and plays out at a much bigger global stage, financial security is important for all. But as the old adage goes, never put all your eggs in one basket towards achieving that. A mindful diversification strategy has the ability to not only reduce the overarching portfolio risk but also increase the potential of the portfolio to offer substantial returns. An Asset Allocation portfolio is a product that can be explored towards this end.
Think SRI: The United Nations is collaborating with partners to highlight the important role camelids play in building resilience to climate change – particularly in mountains, deserts and highlands. However, if a time comes that calls for the survival of human species in similar conditions, we are unlikely to be equally adept at it. So let’s do our bit for climate change now. As per UN’s key findings, transitioning to a green macroeconomy could yield significant economic gains compared with business-as-usual.3 As it rightly says, climate action then is neither a budget buster nor an economy-wrecker. Camels may survive the consequences of our actions, we won’t. We have done our bit; check out our exceptional range of SRI portfolios.
Let’s celebrate this remarkable species. After all, inspiration can come from anywhere.
Happy International Year of Camelids.
PHOTO CREDIT https://www.shutterstock.com/g/Rita+Kochmarjova
Via SHUTTERSTOCK
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Footnotes:
- International Year of Camelids (IYC 2024) , https://www.fao.org/camelids-2024/about/en
- Camel, https://www.britannica.com/animal/camel
- UN’s key findings, https://www.un.org/en/climatechange/science/key-findings
