It’s back! The fun, the action, the madness and the crazy atmosphere that engulfs each and every part of the country. It’s the game that is a sport second and a religion first. The game that makes millions of hearts skip a beat as the ball is hit high up in the air. Will it be caught? Or has it been hit hard enough to cross the boundary line? Yes, it’s cricket. As the Indian Premier League (IPL) is back with a smashing tenth season, there’s a lot of excitement in the air.
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We all have our favourite teams we swear by and players we closely admire and appreciate. Just like the quick 20-20 format of the game, there are a lot of swift investment lessons we can learn from the IPL. Does that sound impossible? Don’t worry. We’ll definitely change your opinion about it. Actually, there are a lot of similarities between the two. Ready at the crease? Here comes the first delivery:
Timing Is Key
Have you ever seen a poorly hit shot crossing the boundary line? There might be a rare chance of that happening only if the batsman is way too lucky or the fielder is way too clumsy to actually let the ball go past them. When it comes to the IPL format of the game, timing again plays a key role. It’s not just about timing your shots right, you also need to play aggressively, on your front foot from the very first ball. If you endlessly keep waiting for the ‘right’ delivery, you probably will never get it and will end up losing your wicket too.
Since it’s a 20-20 game, and you can actually take advantage of the field restrictions, you don’t really have an excuse to wait till the very end. The same concept applies to your investing habits as well. When you are in your 20s, just started working, it’s the best time to start exploring investment options. The reason it’s the best time to start investing is simple. You are young, with less burden of financial responsibilities. It makes you all the more capable of taking and handling more risks compared to when you turn older and have a lot of financial commitments to think about. You can’t just randomly opt for any other investment plan. You need to consider a lot of factors like your risk-taking abilities, current salary, other financial commitments, etc.
Additional Reading: The Beginner’s Guide To Creating An Investment Portfolio
Take A Risk And Get Rewarded In Return
An IPL game can’t be a nail-biting experience unless at least some of the players take some risks and make things happen. Ask yourself, if you want some highly entertaining cricket action, what would you prefer to watch? A test-cricket series or a quick 20-20? Of course, the latter! One of the most crucial qualities any IPL team owner looks for in their team members while bidding is their risk-taking ability.
The same rule applies to investments as well. You need to be willing to take at least some risks to make things happen and see your money grow. It might not sound too safe, but to help you with that, you can always talk to an expert. With their assistance, understanding the world of investments becomes a cakewalk. Instead of thinking whether it will be a four or a six, you must aim at placing the shot right and hitting it with everything you’ve got. That should do the trick.
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They say cricket is a game of uncertainties and it’s absolutely right. No matter how many pitch reports and game predictions you make (depending on the latest form of players from both teams), you can never really predict the outcome. A batsman who has been consistently failing in the previous matches might suddenly surprise you with a century. Or a bowler, who had a five-wicket haul in the previous match, might just get banged with fours and sixes. Basically, it’s all about surprises.
Investments are exactly the same. You always need to be equally prepared for the pleasant surprises and the bad shocks as well. Since it involves a fair bit of risk, there’s always some room for surprises creeping in.
Plan Before You Proceed
You love it when your favourite IPL team forms a huddle every now and then, don’t you? They don’t do that for fun. That’s when they strategise and chalk out a game plan. They discuss their fielding forms, batting orders and other plans. Basically, it’s more like a strategic timeout. The whole point behind doing this activity is to know what each of the players are doing and being on the same page as others.
Investments are no different. Every now and then, you need to take a pause and think about your investment strategy. With time, your requirements and needs are bound to change. Your investment plan needs to mutate and change to be in sync with them.
Achieve A State Of Equilibrium
How do you think the captain and selection experts choose a team? Do they randomly bid on the best players or do they have a strategy behind it? They form a strong team by bringing together a couple of best openers, few great bowlers, some great hitters and awesome fielders/all-rounders; basically they work towards establishing a balance. You can’t form a great team by just combining eleven great hitters. In that case your bowling will suffer. You need to ensure a strong bowling line-up as well. Similarly, you need a set of great fielders on the field who jump in all directions and save all those extra runs.
Investments are all about getting the balance right too. Your portfolio needs to be diversified enough to be able to handle a strong market blow. Diversification helps reduce risks. If one sectors isn’t performing well, you at least have your other investments to fall back on.
One Shock Can Change The Game
How many times has it happened that your favourite batsman came to the crease, played a couple of great signature shots and then suddenly got out? Happens quite a bit. You can’t always blame them; it’s how the game is. If you want to put some great numbers on the scoreboard, you have to take the leap of faith and hit some big shots. After losing a crucial wicket, it kind of becomes difficult to get your game back on track.
Life can throw a lot of lemons at you. You need to be tough enough to hit them so hard that they cross the boundary line. Apart from being financially prepared, you also need to be mentally ready to handle them well. Don’t let one bad innings destroy your chances of a bright financial future. If you need help with any of your investments, talk to an expert. Just don’t give up.
Additional Reading: Newbie Investor? Avoid These 8 Common Investment Mistakes!
Consistency Helps Win Matches
It feels great when your favourite player gets chosen as the man of the match, right? That’s a reward for their dedicated, awesome performance that helps their team win or put up a great show. Getting your investments right can be quite rewarding as well. You might not get a shiny trophy for taking some wise financial decisions, but all the monetary gains you make definitely make up for that.
Exactly like the career graph of your favourite player, you need to be consistent with your investments too. If your investments perform consistently over a long period of time, that sure means you will win the tournament!
No IPL team can perform well without a great coach. It is important to get the best and most balanced set of players in a team. But getting an equally good coach is crucial too. No matter how great all the players are, they always need a guide. Someone who knows the strengths and weaknesses of the entire team and helps them strategise accordingly. The coach also plays a crucial part in making a list of mistakes the team did on-field and the things that worked in their favour. This helps avoid the things that didn’t work out and repeat what worked.
Exactly like this, you also need to get some expert advice. It doesn’t necessarily have to be someone professional. Any friend or family member who happens to have an in-depth knowledge of the subject should be able to help you. There are chances that you are well-informed about the subject yourself. The only reason you need to consult an expert is to avoid the chances of committing a financial blunder that could possibly affect you in future.
Attitude Changes Everything
There are so many instances in the IPL where a poorly performing team suddenly surprises everyone by turning the game upside down. Most of the time, it happens only because of their constant faith in themselves and their winning attitude. Believe it or not, the right attitude has the power to turn the face of any cricket match.
When it comes to your investments, you need to focus on your attitude as well. You might not always be in a very comfortable spot while starting off, but you need to constantly believe in yourself and see things through. Keeping the right, winning attitude is the only way to get things done real quickly and also with maximum efficiency.
There’s no harm in learning some quick and great investing lessons from your favourite game, is there? Now that you have all the information that you need, you can go back to cheering for your team, painting your faces and screaming on top of your lungs and enjoying the games.
Psst…are you new to the world of investments? Don’t worry. You can go easy and start by investing in a Fixed Deposit.