Can football make you a smart investor?
Look at the best football teams in the world and you will see one characteristic dominating everything else- teamwork amongst players.
In this article, we take a look at how a football team’s structure could help you develop a sound investment strategy.
Different parts of the team – Defenders, Midfielders, Forwards – play together to achieve victory. Getting the right mix as per the situation of the game could turn the tide of the game.
Defenders are the backbone of the game. They have the grit to tackle opposing players. They also protect the goalpost against corners and free kicks. Similarly, a debt fund might give you the required stability by endeavouring to reduce the risk to your portfolio and providing the freedom of liquidity.
Midfielders disrupt the opposing team’s advances and create opportunities for Forwards to score. Depending on the situation, a Midfielder transforms himself from shielding the goal (playing defense) to helping score goals (playing offense). Similarly, a hybrid fund category might give you stability while equity portion might help you beat inflation and grow potential wealth in the long term.
While Midfielders and Defenders are crucial to winning, football matches are won by scoring goals and not merely defending against the opposite team. Forward play an important role by scoring the most goals. Can you imagine footballers lined up without Forwards; Portugal sans Cristiano Ronaldo or Argentina without Lionel Messi? Without the goal scorers, can a team win a football match? Most likely, the answer is “No”. In the world of investments, equity funds could be said to play the role of Forwards. Just as Forward beats a goal keeper on the field to score a goal, equity funds could help beat inflation and could help you to attain all your important long-term goals.
Finally, in deciding which strategy suits you best, remember the key could be not timing but how much time you spend in the market – especially when you are dealing with equity funds. So when you are watch an interesting football match, think how you could apply the strategy to your investments.
Happy Investing!
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