Why Investing is like an IPL season: Expect the highs and the lows, but stay in the game

Smart IPL captains and smart investors tune out the noise and focus on strategy.

If you’re an Indian cricket enthusiast  who’s ever stayed up late cheering for your favorite Indian Premier League (IPL) team, you know the drill: thrilling highs, gut-wrenching lows and the odd rain delay that throws everything off. Investing, especially in short time horizons, isn’t all that different.

As we step into 2025’s financial landscape, let’s explore why investing feels a lot like an IPL season and why those who stick to their gameplan and stay on course, despite the chaos, often emerge winners.

The opening overs: Setting the tone

Every IPL season kicks off with hype. Teams splurge on new talent at the auction, fans dream of the trophy and the first few matches set the tone. Investing starts similarly. You dive in—maybe with a hot small-cap stock or a buzzing mutual fund new fund offer—riding the excitement of early gains. The Nifty might climb 5 percent in a month, and you’re feeling like Rohit Sharma after a cracking cover drive. But just like those opening overs, it’s not all boundaries. A geopolitical development or interest rate hike or an erratic monsoon can stump your portfolio faster than a Jasprit Bumrah yorker.

The middle overs: Grit over glamour

Mid-season, the IPL gets tricky. Star players slump, injuries hit and teams scramble to stay in the playoff race. Investing has its middle overs too—those stretches where markets stagnate or dip. Inflation’s been hovering above the Reserve Bank of India's 4 percent target, and bond yields aren’t the safety net they once were. Your equity systematic investment plan (SIP) might flatline, tempting you to pull out. But here’s the thing: the best IPL teams don’t panic. They grind it out, banking on players like Virat Kohli to steady the ship. In investing, this is where patience pays—staying disciplined with your SIPs or holding that blue-chip stock through the noise.

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The powerplay and slump: Risk and reward

The powerplay in T20 cricket is all about calculated risks. When it works, you get a six-fest. When it doesn’t, wickets tumble. Investing has its own powerplays, like going all-in on small-cap funds, tech stocks or thematic investments such as green energy.

India’s push for net-zero emissions by 2070 has made renewable stocks a hot sector, but just like an aggressive T20 cameo, they can be volatile. Then comes the inevitable slump, triggered by a US recession scare, crude oil price spikes or unexpected regulatory changes.

In 2022, for instance, both stocks and bonds took a beating, leaving investors rattled. The lesson is simple. One bad over, or even a couple of rough quarters, does not end the game. The ones who survive market downturns are those who do not lose their cool.

The crowd factor: Noise vs strategy

IPL fans are loud—cheering every six, booing every dot ball. Investing’s got its own crowd: the WhatsApp forwards screaming “buy this stock” or the X posts predicting doom. After the dramatic swings in stocks in the recent past, it is easy to get caught up in the frenzy. But smart IPL captains and smart investors tune out the noise and focus on strategy. But just as IPL coaches tune out the stands to focus on strategy, smart investors stick to their gameplan. Diversifying equity portfolios across large-, mid- and small-caps and also into different asset classes like gold and real estate investment trusts can keep you steady when the crowd’s losing it.

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The final overs: Playing to win

The death overs in IPL decide everything. This is when teams chase improbable totals or defend narrow leads with ice-cool precision. In investing, the final overs are your approach to reaching financial goals.

As you near your goal, whether it is a down payment for a house, a child’s education or retirement, you need to tweak your strategy. Should you shift to safer bets such as debt funds or, if time is on your side, double down on equities?

MS Dhoni’s cool-headed finishes remind us: it’s not about flash but timing. In India, with a young workforce and a GDP growth rate envied globally, the long-term scoreboard often favours the bold who stay in.

Also read | March 31 deadline: A last-minute guide to reducing your tax outgo

Why stay in the game?

An IPL season isn’t won in a single match. Just ask Kolkata Knight Riders fans who have witnessed dramatic comebacks. Investing, too, rewards those who stick it out.

Despite crashes and corrections, the Sensex has climbed from 30,000 to over 80,000 in a decade. There will be googlies—geopolitical shocks, policy U-turns—but the data says staying invested beats sitting out. Like an IPL team tweaking its lineup mid-season, tweak your portfolio: add a thematic fund, trim a laggard, but don’t leave the field.

The next time your portfolio takes a hit, think of it as an IPL season. There will be ups (that dream run), downs (that unexpected loss) and plenty of drama, but the ones who stay in the game until the last ball are the ones who win.

The author is the founder & CEO of Scripbox.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.