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Be a winner in the game of investing just like Cricket

Here are the ways you could get the best from your investments just like the matches and play a strong innings
11 October 2023
    Articles

    Be a winner in the game of investing just like Cricket

    While watching Cricket, have we ever noticed that there are many similarities which exist between Cricket & Investing? The most important amongst them being strategy and a long term view. Strategy is key along with careful planning and patience. Here are the ways you could get the best from your investments just like the matches and play a strong innings.

    Physical Fitness = Investor Awareness

    Just as a player’s performance depends on his fitness, an investor’s awareness is what helps him decide what investments to make. An informed investor won’t follow the herd or be swayed by hearsay. It pays to do your research before making any decisions. And, when in doubt, always consult a professional on what course of action to take.

    Team Selection = Asset Allocation

    Like a cricket team is made up of diverse players like fast and spin bowlers, batsmen, wicket keepers, fielders, etc. your portfolio too needs the right mix of asset classes like equity, debt, cash and gold to name a few. A fast bowler is similar to an equity fund whereas an all-rounded like a hybrid fund. But the important thing is to get the right mix of asset classes to ensure that your portfolio won’t be affected by sudden fall in any one asset class.

    Game Plan = Risk Appetite

    Every batsman thinks before taking a single or slugging a six and every ball that’s bowled is carefully timed and dispatched to gain maximum advantage. Just as a player assesses his risk before playing, you too need to make the right preparations before investing. Determine your risk profile to decide how much to allocate in each asset class and whether the time is suitable to play hard or play safe.

    Winning the Toss = A Good Start

    The toss plays a significant role and ensures a good start. In investing, an early start is a good start because your money gets more time to grow and benefit from compounding. So seize the moment and start right away to give your money the benefit of time. You will realise that it could be your winning decision in the long term.

    Role of a Coach = Professional Management

    A coach brings a wealth of knowledge, experience and expertise to the field. Fund Managers play a similar role in investing. Using in-depth research and proprietary tools, they analyse every single stock or debt instrument before investing to help drive the performance of the scheme. Professional management is the hallmark of every mutual fund investment.

    Taking Singles = Systematic Investing

    Every run adds up. And that holds true for your investments as well through systematic investing. Monthly investments are like taking singles, they ensure your scoreboard keeps ticking. While intermediate lumpsum investments could be compared to the occasional boundary, the discipline of systematic investing could result in a great score over time.

    Powerplay = Maximising Returns

    In every match there are those overs where the batsman aims to maximize runs in powerplay by smashing fours and sixes. Similarly in investing, there are times when an investor could look to maximize the growth of his investment. It could be as simple as entering the market through equity funds in a bear phase to cash in for the long term. Think of it as hitting a four or even a six by making your investment at the right time.

    Wicket Falling = Time for Review

    There are times when even the best batsmen get out and even the best bowlers go wicket-less. A similar situation could occur with your investments. At such times, relook at your portfolio and seek professional help before making any changes to ensure long term growth.



    An Investor Education & Awareness Initiative by HSBC Mutual Fund

    Visit https://grp.hsbc/KYC w.r.t. one-time Know Your Customer (KYC) process, complaints redressal process including SEBI SCORES (https://www.scores.gov.in). Investors should only deal with Registered Mutual Funds, to be verified on SEBI website under Intermediaries/Market Infrastructure Institutions (https://www.sebi.gov.in/intermediaries.html). Investors may refer to the section on ‘Investor Education’ on the website of HSBC Mutual Fund for the details on all ‘Investor Education and Awareness Initiatives’ undertaken by HSBC Mutual Fund.

    Document intended for distribution in Indian jurisdiction only and not for outside India or to NRIs. HSBC MF will not be liable for any breach if accessed by anyone outside India. For more details, Click here / refer website.

    Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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