No, we aren’t taking away the thrill of the T20 series by reminding you about the serious financial stuff.
Instead, we urge you to watch the matches because you will spot cryptocurrencies making appearances on Disney+ Hotstar through campaigns run by
CoinSwitch Kuber and because these matches by themselves are a goldmine for financial lessons.
Yes, Cricket is not just entertainment. It’s infotainment.
You can learn tons of financial lessons from the game while vouching for your favourite team and eating popcorn. Here are a few of them:
- Enter the field with proper planning
“Failing to Plan is Planning to Fail”
Before the players put on their armours and get on the field, they spend months planning. They understand their areas of improvement, research their opponent and set goals accordingly.
Just like a lot of planning is involved before the matches, investors would also benefit from planning before jumping to invest. They would benefit from identifying their risk appetite, investment potential and setting goals before investing. Failing this, they may end up making abrupt investment decisions that might not be in their best interest. However, awareness of these critical points shall help them make analytical choices.
While entering the playing field without planning could put players at risk of losing their long-standing reputation, an investor could be risking their hard-earned money.
- A single-player can’t lead you to victory.
Like how eleven players collectively make the team in cricket, multiple investment instruments make a portfolio.
When we think of a cricket team, we think of five batters, four bowlers, one wicketkeeper and one all-rounder because that is the right balance. A match cannot be pulled off if there is a disproportionate number of players and skill sets. Similarly, investors should also aim for the right balance of players (asset classes) in their team (portfolio). Considering their risk appetite, they could have their investment scattered across asset classes with varying strengths and weaknesses. It will help them balance the risks associated with returns on their investment.
A player or an asset class might, sometimes, be the man of the match, but one can not bank on them every time. Investors may look for the right mix of batters/crypto, bowlers/stocks, wicketkeeper/gold and all-rounder/ deposit schemes to set up a fantastic match and an incredible portfolio.
No matter how experienced the team players are, they are constantly learning and practising different playing styles.
For example, a spinner may also learn how to bat better and experiment with their playing styles on the field. Adopting new skills helps surprise the competition and acts as a safety net for their team when everything else fails.
The same applies to investing; an investor could also constantly learn and experiment with different strategies and adopt asset classes that benefit their whole portfolio. For example, somebody investing in stocks or mutual funds might also want to dip their toes into cryptocurrencies and benefit from a diverse portfolio, especially with apps like
CoinSwitch Kuber
making investing in crypto investments as simple as ordering food online.
Adopting new skills or new asset classes allows investors to broaden their horizon and grow.
Opportunities and uncertainties can knock on the door anytime, and players and investors alike need to be prepared for it.
For instance, just like fielders seize all opportunities to make seemingly impossible catches, investors also get such chances that they might want to grab. For example, people who bought Bitcoin or tasted cryptocurrencies early on benefitted from the asset’s double-digit growths all this while.
- New entrants may surprise you
Cricket is a lively sport, and we see new cricketers joining the league very frequently, and some of these players have turned out to be outstanding. Similarly, new entries of the investing landscape, like the lately-introduced asset class, cryptocurrencies, are emerging as the star asset for FY 2020-2021 with a growth of
800%. As a result, cryptocurrency platforms like
CoinSwitch Kuber
have experienced massive jumps in their user base.
ET Spotlight SpecialThe bonus tip:
Since you made it this far, here’s a bonus tip:
Overly defensive may not always be the right strategy
Sometimes players become overly defensive by just playing between the wickets and not smashing boundaries. These players end up scoring the bare minimum, while those who take calculated risks and hit boundaries earn more runs.
Investors who are overly defensive and invest only in risk-averse instruments or don’t invest at all get away with the bare minimum returns.
In comparison, those who take calculated risks and invest in high-risk, high-return options like stocks or crypto may end up doing comparatively well. But here, too, investors shall be aware of their risk appetite and take risks accordingly. They may want to combine high risk – high return with low-risk low return assets to balance the risk.
Disclaimer: The above content is non-editorial, and TIL hereby disclaims any and all warranties, express or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.
