Aditya Birla Sun Life AMC Limited

How Cricket teaches you to be a Smart Investor?

Jun 21, 2019
5 mins | Views 9991

The nation is in the midst of a cricket frenzy, and rightfully so considering the powerful start that Team India has made in the ongoing Cricket World Cup 2019. The country has been among the top teams in the world consistently since the last one decade or so. This success and pride have come courtesy some incredible performances, great potential, and of course, a thorough understanding of the game. If we look at it closely, the elements of this great sport greatly reflect the elements of the financial investment world. We tell you how.

  1. Getting a batsman out (caught, LBW, Bowled, Run Out) – Getting the rival team’s batsmen out is always a good thing. Similarly, it is always the right time to start investing in mutual funds. The early you start, the better it is.

  2. Hat trick, Sixes – Just how a strike bowler keeps bowling even after taking a wicket or a batsman keeps consistently hitting big shots, a smart investor also needs to be consistent in investing. You can aim to achieve your goals by consistently investing through Systematic Investment Plans (SIPs).

  3. Batting: half-century or century – Great batsmen score half-centuries or centuries by consistently focusing and hitting the ball for a six or blocking it, as needed. Likewise, mutual fund schemes focus and work as per different market conditions with an aim to help you achieve your goals.

  4. Batting Partnership – Teams often win matches based on batting partnerships. A good partnership between the fund manager & his team can help get returns on your investments. A fund manager’s consistent handling of the market scenario is key to a successful investment inning.

  5. Winning Team Strategy – To win in Cricket, it is important to get the strategy right. Which players to pick in the final 11, batting order, bowling decisions, etc are all crucial strategy points that can make a team win or lose. In the same way, choosing an appropriate mix of investment products based on your goals, risk appetite, time horizon etc., is very important for winning the financial game.

  6. Best Bowling – A bowler must have control over his line, length, speed, variations etc throughout the match, in order to deliver best bowling performance. Like each ball counts to take the team closer to the win, for every investor, each SIP instalment counts for taking him closer to his goals. Investing consistently is the key here.

  7. Team Consistency – To win a tournament like the World Cup, the team must consistently play their top game, assess each match strategically and make smart moves throughout the tournament. In the investing world, the fund managers also consistently keep working towards making your investments win throughout your investment journey.

  8. Pitch Condition – A player can’t control the pitch condition, the pace and bounce etc. However, great players assess the conditions and devise their game-plan accordingly. In the same way, you can’t control the market conditions but you can understand them and stay invested for long term to achieve your financial goals.

  9. Third Umpire Help – There are times when there is confusion about the scenario, and you want to make the right decision. That’s when a third-umpire is approached to provide his expert opinion and enable correct decision-making. Hence, when you are unsure about your next step in investing, you should call the experts who review the problem for you and help in correct decision making.

  10. Last Mile Chase – In cricket the game can change quickly courtesy of brilliant shots or quick wickets, especially in the last few overs of the match. In such situations, good players assess the situation and adjust their approach to make their team win. In the same way, fund managers constantly keep an eye on the changing circumstances and make strategic changes that can get you closer to your investment goals.

In conclusion

The fact is, most cricketing principles are perfectly in sync with the investment strategies. What you need to do is to apply the strategy that makes you win the game, on the cricket field as well as on the investment pitch!

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

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