​10 investing lessons you can learn from the IPL​

Apr 3, 2023

By: Anagh Pal

Credit: BCCL

Investing lessons from IPL

The next 2 months many of us will be celebrating India’s biggest cricket festival- the Indian Premier League (IPL). And no wonder, because it brings with it a lot of adrenaline rush, nail biting moments and glamor. Interestingly, there are some investment lessons one can learn from this cricketing T20 spectacle.

Credit: BCCL

​Check the ground properly before a match

Teams check the ground conditions before devising a strategy. Similarly before you start investing, it is important to analyze your financial situation and the market conditions.

Credit: Quora

​Start your investments early​

The first 6 overs in the match during the powerplay, when only two players can be placed outside the 30 yard circle is the time when the batting team can score a lot of runs. Similarly, starting to invest early when you have fewer responsibilities is the key to creating wealth in the long run.

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​Learn about risk and reward​

In IPL, batsmen need to take a risk to build a big score. They need to hit through the air which increases their chances of getting out. Similarly, you need to take calculated risks and invest in equity so that your portfolio can beat inflation and create wealth.

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​Consistency is key

Players who contribute majorly to the team’s success are those who make small but significant contributions in almost every match. Similarly you need to be consistent with your investment to build wealth.

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​Cut out the noise

IPL comes with a lot of glamor- fame, money, celebrity endorsements and everything else. But just like the best players are not distracted by all of that, wise investors should not be distracted by advice or tips on social media when investing.

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​Make use of the strategic time-out

Both the batting and the bowling teams get one strategic timeout of 3 minutes. Here the captain can take feedback from the players and tweak the strategy if required. Similarly, when it comes to your investments, it important to take some time off to rethink and reevaluate.

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​Never rely on past performance

It has been seen that players who have played really well in one season and fetched a very high price in the next, fail to perform according to expectations. Similarly in investing , past performance is never a guarantee for future returns (mutual funds are a good case in point).

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​Diversify your portfolio​

Just good batsmen or bowlers cannot make a team win. A good team needs the right combination of batsmen, bowlers and all rounders to be successful. Similarly your portfolio needs to be adequately diversified for it to perform well over a long period of time.

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​You need a good coach

Ricky Ponting, Stephen Fleming and Tom Moody are among the most successful IPL coaches, having taken their teams to success. Similarly, you need a good financial advisor to guide you on your investments.

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​Review your investments regularly​

The IPL goes on for about two months and a team needs to constantly review their performance to see what is working for them and what is not. Similarly you need to review your investments regularly based on market conditions and your personal milestones.

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