You may be the biggest football fan ever and we’re pretty sure, there’s nothing that you don’t know about the game. Also, is it true that you can give the name of almost each and every football player in every club? If the answer is yes! You’re on just the right spot.
Have you ever wondered that your favorite sport, Football has a lot of things in common with investing your money? Maybe some of you might be aware of that fact while some are not. So, keeping in mind all your needs, we at Arihant keep pushing forward & bring to you the best that we can ion the field of investing.
As the Football World Cup season is already running, why not introduce you to the titbits of Investing by a great comparison with this game? That’ll be fun. right? Then, let’s begin.
We’ve summed up 5 interesting things that are common between Football and Investing:
#1 Initiate as early as possible
You remember when Wayne Rooney playing from Everton scored that rumbling goal against Everton, he was just of the age 16 years and so. And what is he now? 12 years later, he’s standing as the one highest paid footballer in England scoring about 232 goals in his playing career. Thus, investing is the same as football, you must start as early as possible to get higher returns. And how that happens? Only when the magic of Power of compounding comes into play.
#2 Are you ready to take calculative risks?
In football, converting penalty is an art. And this is just like selecting the right investment to grow your money. Thus choosing the right funds is equal to choosing the right shooter. The one similarity between Football and investing is that you always need to take the calculative risk, without which there is no greater gain.
In investing, the riskier your investment gets, the greater the reward. While we humans try to minimize risks at all times, a smart investor should look at minimizing risks while maximizing returns. While traditional investment channels like bank FDs and real estate are safer ways to invest, the returns are too low. Invest smartly in assets like equity mutual funds which has higher risks and better rewards.
#3 Reviewing your progress and making changes
While you keep reviewing your team in Football, it is very important to substitute a right player when necessary. Likewise, goes into the field of investing, it is equally important to keep reviewing the portfolio and keep making changes when necessary.
Rebalancing your portfolio should be a compulsory process while you review it in addition to replacing of lower performing assets with better ones.
#4 Ups and Downs are a part of life so don’t get worried
In a game like Football, there is always an uncertainty of the team winning and losing the match at any moment of the game. We never know which one would hit the rock bottom and when. Somewhat in the market, same follows. In the equity markets, despite the fact that it gives long-term returns, people usually defer their investing decisions when it comes to a highly volatile market.
#5 Don’t hesitate to get professional help
While it is true that raw talent alone can take you to the top yet there is something else which is needed to bring out the best in football players. As far as I’ve seen, Cristiano Ronaldo is possibly the fastest runners today along with other football players. Yet to learn the tactics of running, he was coached by the world’s fastest man, Usain Bolt on his running style and posture. To this, Ronaldo agrees has made a huge impact on his speed and helped to avoid several injuries.
While investing, it’s not too much complicated yet people sometimes make wrong investment decisions due to the fact that they don’t have sufficient time to apply their brains in investment options. Thus, it’s sometimes better to go for PMS (Portfolio management service) through a well-researched company.
With this above information, we’d say that good things generally comes to those who wait and investing is same as the saying goes. You just have to be patient and control over the buy/sell thing while you are seeing market conditions.