Investment lessons one can learn from choosing players of an IPL team

The Indian Premier League (IPL) is a two-month long entertainment bonanza for cricket lovers across the world. However, this entertainment does not come cheap, at least for the team owners. They pay crores of rupees in order to bag the best players for their respective teams.

Have their investments paid off? Only time will tell. But from an investment point of view, the selection process can offer great lessons.

  • Unique role of each player

There are 11 players in a cricket team. And each player has a unique role to play. For example, a player may be recruited specifically for his stability in crunch time. This is immensely beneficial in a T20 match. Similarly, as an investor, you have different investment goals. These can be short-, medium- or long-term goals. By having different kinds of funds, you can meet your goals at the right time.

  • Future potential

Many times, you see that teams invest in relatively unknown players. As a fan, you might wonder what the team owners see in these players. The answer is: future potential. These young players show promise to deliver good performances. Similarly, as an investor, it is important to identify those funds that can help you earn good returns. This way, you can attain these investments at a good price and achieve robust profits over a period of time.

  • Monitor the performance

When a player consistently underperforms, the team replaces him with another player. This is to ensure that the best 11 players are on the field representing the team. In the same manner, you should constantly monitor your investments. In case a fund doesn’t perform as per your expectations, it might be necessary to remove it and select a better alternative. In the end, your goal should be to maximize the returns on your portfolio. And to achieve this, you need to review your funds from time to time.

  • Have the right mix

In the shortest format game, big-hitting is a tremendous weapon. However, no team consists of just big hitters. Each team has a good mix of big hitters, fast bowlers, spinners, young blood, matured players and all-rounders. In the same way, your portfolio should consist of the right mix of assets like equity funds, debt funds and hybrid funds. Diversifying your portfolio can help you meet your different investment goals.

To sum up, the ‘Mutual Funds Sahi Hai’ campaign offers investment advice during commercial breaks of an IPL game. This time, for a change, how about taking investment lessons directly from the IPL game itself!

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Author: Guest

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