Moneycontrol
Last Updated : May 04, 2018 09:10 AM IST | Source: Moneycontrol.com

Watching IPL? Here are 10 financial planning lessons from T20 cricket

If you are one of the ardent fans of IPL, there are several financial planning lessons that you can draw from the way the shortest version of cricket is played. T20 cricket has several rules and regulation and the way it is played, which you can also apply to your investments to achieve your goals over a period of time:

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Aim to score high | The momentum of run scoring is important in T20. A regular run flow will make sure there is a high target for the opposition. Similarly, when it comes to investing, you should start your investments as early as possible because doing so will help you multiply your wealth. And by the time you retire, you will able to create a huge corpus due to the power of compounding.
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Aim to score high | The momentum of run scoring is important in T20. A regular run flow will make sure there is a high target for the opposition. Similarly, when it comes to investing, you should start your investments as early as possible because doing so will help you multiply your wealth. And by the time you retire, you will able to create a huge corpus due to the power of compounding.

Proper ground-check before investing | A team decides the strategy into the match only after reading the pitch and ground conditions. Similarly, before investing, investors should analyse the market scenario because market trends help to decide the right buying and selling options of stocks and funds at any given point in time.
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Proper ground-check before investing | A team decides the strategy into the match only after reading the pitch and ground conditions. Similarly, before investing, investors should analyse the market scenario because market trends help to decide the right buying and selling options of stocks and funds at any given point in time.

Diversify your investments | Building high score requires a team effort. Things which we should take from this cricketing strategy is that while savings and investing money towards a certain financial product, it’s always recommended to diversify it across the various categories of funds like (large-cap, mid-cap, infrastructure funds, etc.).
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Diversify your investments | Building high score requires a team effort. Things which we should take from this cricketing strategy is that while savings and investing money towards a certain financial product, it’s always recommended to diversify it across the various categories of funds like (large-cap, mid-cap, infrastructure funds, etc.).

Keep focus intact | While facing odds, team fights until the end. Similarly, despite facing the market volatility, correction and fluctuation in between the journey of your ongoing investment, you should keep yourself focused on achieving your desired financial goal.
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Keep focus intact | While facing odds, team fights until the end. Similarly, despite facing the market volatility, correction and fluctuation in between the journey of your ongoing investment, you should keep yourself focused on achieving your desired financial goal.

Make use of the strategic break | Every match has a strategic time break where the team discusses the next level strategy for the remaining overs. Similarly, in financial planning, one should take out time and discuss investment portfolio with their financial adviser. (Picture: iplt20.com)
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Make use of the strategic break | Every match has a strategic time break where the team discusses the next level strategy for the remaining overs. Similarly, in financial planning, one should take out time and discuss investment portfolio with their financial adviser. (Picture: iplt20.com)

Take a risk and win reward| In order to build a big score, batsmen take risks and hit shots through the air. Similarly, while investing your money, it necessary to take exposure in equities which is anyway a risky product. However, it helps in boosting your capital. Investing in equities helps in achieving your financial goal comfortably in future.
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Take a risk and win reward| In order to build a big score, batsmen take risks and hit shots through the air. Similarly, while investing your money, it necessary to take exposure in equities which is anyway a risky product. However, it helps in boosting your capital. Investing in equities helps in achieving your financial goal comfortably in future.

Right investment mix | A well-defined team consists of batsmen, bowlers and a wicketkeeper who help in achieving the overall target even if one of the team members do not perform better. Similarly, while constructing your portfolio, one should opt for a right mix of equity, debt and gold in the portfolio one can never accurately predict which asset class will perform better in future and which will not.
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Right investment mix | A well-defined team consists of batsmen, bowlers and a wicketkeeper who help in achieving the overall target even if one of the team members do not perform better. Similarly, while constructing your portfolio, one should opt for a right mix of equity, debt and gold in the portfolio one can never accurately predict which asset class will perform better in future and which will not.

Ignore the noise | Audience noise builds pressure on players but good cricketers never get distracted and are focused on their target. Similarly, as an investor you should also not get panic with short-term rise and fall of the market, hence, you should also ignore the noise and remain focused towards achieving your long-term financial goal.
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Ignore the noise | Audience noise builds pressure on players but good cricketers never get distracted and are focused on their target. Similarly, as an investor you should also not get panic with short-term rise and fall of the market, hence, you should also ignore the noise and remain focused towards achieving your long-term financial goal.

Identify the target person | Ever noticed how a batsman picks a bowler to hit or a captain uses specific bowler to tame a batsman! Similarly, while investing your monies, it is important to know your fund manager, who helps in identifying the portfolio strategy. And also, knowing the strategy will help you understand how your money is going to be invested in the several funds across sectors.
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Identify the target person | Ever noticed how a batsman picks a bowler to hit or a captain uses specific bowler to tame a batsman! Similarly, while investing your monies, it is important to know your fund manager, who helps in identifying the portfolio strategy. And also, knowing the strategy will help you understand how your money is going to be invested in the several funds across sectors.

Analyse the performance | IPL is all about scoring and being in a super form. If a player does not perform well over a few games either he is replaced. Similarly, if your scheme is making consistent losses and is not giving good returns then in such case, you may easily switch your scheme with a different scheme within the same fund house and get good returns. (Pictures: PTI/Text: Navneet Dubey )
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Analyse the performance | IPL is all about scoring and being in a super form. If a player does not perform well over a few games either he is replaced. Similarly, if your scheme is making consistent losses and is not giving good returns then in such case, you may easily switch your scheme with a different scheme within the same fund house and get good returns. (Pictures: PTI/Text: Navneet Dubey )

First Published on May 3, 2018 06:21 pm
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