RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Love cricket? Then you already know the basic lessons of investing

down-arrow
Love cricket? Then you already know the basic lessons of investing
November 27, 2020

Table of Content

 

Of the numerous things that are a remnant of colonial rule In India, the love for cricket is undoubtedly the best one. Though the British introduced the game in India, it has gained more popularity in the subcontinent than its home country. In India, cricket has transcended the boundary from being a sport to a festival. Billions follow the gentleman's game religiously in the country. A lot of life lessons can be learned from the game of cricket. Patience, teamwork, planning and clear communication are some. Besides the broader life lessons, cricket also teaches a number of basic lessons of investing.

Play patiently

The sudden rush of adrenaline has been the undoing for many greats of the game. It is not uncommon for a well-set batsman to give his wicket due to impatience. Building memorable innings requires patience and a long term horizon. Not all batsmen are alike, some may start scoring from the first ball and go on to score a century, but in most cases, gathering runs requires patience. Similarly, wealth is accumulated in the long run. Equity is one of the asset classes with proven returns in the long run. Just like the batsman who throws away his wicket for a quick run, many investors miss the golden opportunity to multiply wealth just for a small profit. To enjoy handsome returns, one has to stay invested in the equity markets for the long term.

Overreliance on a single player can be harmful

Over the years, cricket has produced scores of batting and bowling greats. At their peak, a star player may win a game or two single-handedly. However, to win consistently, one needs a balanced team with a mix of different types of players. Overreliance on a single player, irrespective of his/her abilities, may prove counterproductive in cricket. Investing is similar to the game of cricket. Banking on a single asset can have an adverse impact on your finances. Many investors commit the entire fund to a single asset in the hope of garnering market-beating returns but end up with negative or below-par returns. The key to avoiding the trap of overconcentration in a single asset is diversification. Distribute your investible corpus across asset classes according to your risk profile and financial goals.

Protective gear is a must

With deliveries speeds crossing hundreds of kilometres per hour, a miss can be fatal. Though cricket is called the gentleman's game, playing the sport does lead to severe injuries. The nature of the game makes protective gear mandatory. Without adequate protection, it is not advisable to step on the field. Having protection to face all adversities is not limited to cricket, but applies to personal finance also. Before you start investing, secure your finances, health and life. Health and life insurance are an important component of a good financial plan. In the event of an unforeseen event, a life cover will protect your family against financial difficulties. Similarly, health plan guards your hard-earned money against the adverse impact of rising medical expenses. Investors can also consider building an emergency corpus for emergency situations.

Keep eyes on the asking rate

Cricket fans know rising asking rate in a match is akin to a slow death. It often results in the excessive pressure which leads to costly mistakes. The key to keep the asking rate in check is to rotate the strike regularly and score runs from the first ball. Playing a slow game at the start and trying to slog it out towards the end often backfires. In the case of investing, many people start late and try to generate considerable returns in a short span. If the financial goal is not going to change, why not start early? Starting early provides a longer timeframe to achieve the financial goal.

Follow the rules of the game

Indiscipline and misbehaviour can lead to a penalty or even suspension from the game. Cricketing history is full of players penalised for not following the rules of the game. While investing, following the basic rules becomes important. Pay your credit card bills on time, service your loans within the tenure and make insurance premiums without fail. Small acts of discipline can be of immense help in wealth accumulation.

Conclusion

Just like a gritty performance in cricket wins laurels, investing with patience can help you accumulate wealth. To be financially successful, cricket lovers need to apply the lessons learnt from the game to personal finance. If you are a cricket lover, you already know the basic lessons of investing.

ARN:ED/10/20/20895

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Preserving Your Investment: How New Tax Rules Affect Real Estate Sales Before 2024

Discover how new tax rules affect real estate sales before 2024, impacting capital gains, deductions, and property transactions. Stay informed for smarter decisions.

Financial Freedom for Women Entrepreneurs: Unlocking Success with the 50-30-20 Strategy

Baby Steps to a Secure Future: Financial Planning and Wealth Management

Charting New Beginnings: Financial and Mental Well-being for Single Parents

Essential tips and strategies for enhancing both financial and mental well-being for single parents, empowering you to thrive and support your family.

Charting New Beginnings: Financial and Mental Well-being for Single Parents
Sibling love: Five must-have money discussions Previous
Features of Savings Insurance Plans that You Should Know Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches