Besides the adrenaline rush and cheers that cricket is known for, it has got much more than just cricket fever! There are lot of things that one can learn from the game of bat and ball. When it comes to financial tips, the game does not fail to surprise us as we can draw parallels with investments and cricket.
1. Do the Ground Check first
- Before entering every game, the players carefully analyses the ground and understands the state of the pitch and what works for them.
- Noting down your investment goals- whether it is short- or long term will help you choose the right investment option. Starting investment all of a sudden without prior knowledge, will not work in favour of the investor.
- A successful investor is the one who does proper groundwork and understands which funds work and which does not before he put his funds out there.
- Awareness of the ground and the market is critical for a player and an investor. Understanding the risk appetite and then setting goals realistically will prepare the player and the investor for the uncertainties. You can always choose between high-risk, medium-risk and low-risk investments based on your needs.
2. Be the Early Bird, start with Singles
- When was the last time you saw a batsman missing a chance to score a run? In cricket, a single score is crucial enough to change the game.
- Scoring the maximum matters here. Just like winning the toss in cricket, starting early matters in investment to earn the maximum returns.
- Early investors are the ones who reap the real benefits as they get to enjoy the power of compounding when they near their retirement due to the longer tenure. And it’s not about how much you invest, it is always about how early you invest.
- Early investors always gets a hang of things by the time they start investing more.
- If you haven’t thought about investing, now is the time to open an RD/SIP and start building your savings.
3. The Magic of Teamwork
- A winning team in cricket is always made of the right mix of players. The selection of the team is very crucial to winning the game.
- It is not different when it comes to investments. One should have the right mix of portfolios to balance the ups and downs of the market. Piling up all money in one place will just put the investor in a high-risk zone.
- Multiple investments will always make the right portfolio.Investing your money in fixed deposits, recurring deposits, SIPs, mutual funds, stocks, bonds, gold and more will perform together to make the collective win. It is all about maintaining a perfect mix of high, medium and low-risk investments.
4. DRS during the Wicket Fall
- Learning is a continuous process and no matter where we are, it will always continue. The players, who play in the ground, practice for years, keep experimenting and keep building new strategies to make it their game. Whenever there is a doubt, careful observation needs to be done, before taking the next step. Successful investors spend their time experimenting and adapting to new skills to grow their money and similar to the DRS, decision-making is critical.
- Understanding the market can’t happen overnight. Constant analysis and tracking need to be done to know what works and what does not. If your funds are not working continuously for a period, just switch the stock and keep going; you will get back on track.
5. Do Power plays to Maximise Returns
- In every game, there are these overs where the player tries to attain the maximum score by smashing fours and sixes. Similarly, for investors, there are the points where the investor can earn more returns when invested at the right place at the right time.
- Systematic investments work slow and steady with low risks while stocks and mutual funds, help you scale up your returns based on your call.