Investment lessons from CSK, Do you want to learn and apply ?
One of the best IPL team from the time of its start is Chennai Super Kings or CSK. Though they had won only 3 titles, but they had went into the playoffs more than any other team. IPL or Indian premier league consist of various players across the world playing for one team and that too for little less than 2 months.
It is easy to form a team from one nation with the mission of winning that tournament. When it comes to playing in IPL, there are players across the world with different backgrounds. Apart from cricket and “playing for CSK” there is no other relatedness among them.
From my observation below are the lessons for their success in IPL and this can also be applied into your investment life for maximum returns,
- Sticking to basics
They always believe that they can win at any moment. This can be attributed to the captaincy of Dhoni. Either bowling or batting, he plays to his strengths and also to the team strengths. In the last 2 years many players had turned older and in fact the only team with average age is above 30. Many questioned the move as T20 requires lots of energetic young men. Still CSK believed in their selection and they had won the title last year.
In Investing also if you are investing in equity, you should believe in equities. If you are getting into panic mode and sell your stocks or mutual fund then loss will be yours. Take time to select your investment product, then let the product takes its time to settle down and multiple for you. You need to have belief in money compounding effect. For that you should have patience.
2) Diversify your investment
One team which effectively selects its players is CSK. Faf du pleases played a major role in last year semi final and Bravo plays a major role in death overs of every match. Shane Watson fired up during the final and sealed the match for CSK. Everyone in the team has a role to play and they do it.
When it comes to investing, you should diversify your investments. “ Don’t put all your eggs in one basket”, as per this saying you should diversify. You should invest in debt mutual funds, NCD’s, emergency fund in liquid fund category, stock investments & equity mutual funds for long term etc
3) Sticking to investment basics
When it comes to snatching a win from no where, CSK stands out. Most of them stick to the basics and they look out for opportunities to get into the game. There were times when the opponents play efficiently and you need to respect them and stick to the basics. Dhoni has guided them in most of the situations as the captain, wicket keeper in saying the bowler a much better line to snatch a wicket. Play the game till the end and do what you can, outcome will happen based on the level with which you play.
When it comes to investing, you should follow the basics. Equity mutual funds is for long term investments and you should invest for a minimum period of 4+ years to see good returns. At times when markets are going down, your 2 years investments might show as negative. Validate the fund which you are investing and stick with it for better returns in the long run.
Follow these investment lessons in your life for better life. If you are finding it difficult neverthless approach a financial advisor.