Investing Lessons from Cricket!

Cricket World Cup fever is on. Was watching the recent high scoring India vs Australia ODI match. Had a passing thought, there are so many things about investing that we can understand from cricket, Sharing the same.

Equity Mutual Funds

To score more, the batsman has to hit fours & sixes. It does involve risks, but not reckless batting. A good batsman will always watch out for opportunity to score big on loose balls.

Similarly to create Wealth Via Mutual Funds in long term, its necessary to take calculated risks and invest in volatile equity mutual funds. As and when you have surplus cash in hand or get a bonus, you can invest it into your existing investments. These lump sum (one-time) investments will act as your big shots – bumping up your total investments and bringing you closer to your financial goal.

Systematic Investment Plans

Big shots help build up a big score. However, it’s not possible to hit a six or a four on every ball. That’s why it’s important to keep an eye out for the singles and doubles. Best batsman are smart and always good at accumulating runs.

Similarly in mutual funds investments, your SIP installments are the ones and twos that keep your score ticking. In a disciplined way, it steadily builds up your investment corpus. Small and regular investments will get you closer to your financial goals. SIP is the easiest and smartest way to accumulate wealth.

Patience is Key

To win a match, it is important to stay in the game. Most batsman first get set, understand the conditions. Only then they look to score freely. Batsman who start hitting from ball one, without understanding the conditions, usually fail to score big.

Similarly equity mutual funds too require patience. Understand how things work. In the earlier stage, an investor may feel the portfolio to be hardly making any progress. Impatience could compel you to question your investments and opt for an alternative route that could lead to a drastic loss in the value of your assets. Stick to your investments and avoid too much churn.

Power of Compounding

So often it happens while watching a cricket match. Half way through the match, it seems things are moving slow, good score is highly unlikely. But gradually the momentum starts picking up, things start falling in place and you end up with a pretty decent score. With wickets in hands, and a strong foundation, a batting team is most often successful in accelerating in later stages.

Similarly in equity mutual funds, make a good foundation of investments. Give money ample time to start working for you. Once you have created a good portfolio of mutual funds and given it sufficient time, power of compounding would come into play and surprise you positively.

Advisor Zaroori Hai

Most cricketing teams have bowling, batting and fielding coaches. These coaches help the team and players in analyzing and planning for the game. Players involved in the game may often miss something which is out of place. When things go wrong or not as planned, coach is often able to see it more clearly from outside. He can provide corrective suggestions to the player.

Investment Advisor is similar to a coach. He helps in understanding, analyzing and planning mutual fund investments. He monitors and reviews the progress. If things don't go according to plans, he is most likely to see it more clearly from outside. He can provide remedial action. Investment advisor is a guide, who walks alongside the investor, educating and guiding him along the way towards his financial goals.

If you interested in Investing in Equity Markets via Mutual Funds we can assist and guide your Investments, get in touch with us. Click Here to get our Contact Details

Disclaimer Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the equity mutual funds schemes may go up or down depending upon the factors and forces affecting the securities market.

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