Investments are to achieve life’s financial goals. In any sport, the prime objective is to attain victory. Investing in mutual funds and sportsmanship has notable similarities such as the ability to strike a balance,attitude to play fair, perseverance, strategy and sundry. These qualities areas important to an investor, as much as they are for any athlete or a sportsman in general. Read to know 5 key investing lessons that are offered by different sports;
Like a football team, be diverse and achieve your goals
A football team consists of 11 players who are vested with different responsibilities, with one common objective, to score as many goals to win a match, and to stop goals from the opponent team, etc. The numbers of players in the team are suited for a match, neither too many nor too few. Thus, a football team is diverse and maintains a balance. This is because the football team consists of forwards, midfielders, and goalkeeper. In investment parlance, a good portfolio consists of a mix of asset classes, i.e. a good blend of equity and debt. More often than not, equity is often said to be risky, but if invested for long is known to perform well in most market conditions, whereas debt is considered to be stable and safe during market correction. Therefore, a good portfolio should have a balanced structure of equity and debt to stabilize and grow your investments.
Like a gymnast, maintain your balance and flexibility
Gymnastics is a sport which requires balance, flexibility, strength and composure. Not only is it said to be known as the most challenging sport, it is also known to be extremely risky. However, a principle rule in gymnastics is to have control, on the mind and body. Very similarly, the anatomy of the human body is akin to finances and financial assets. An investor must have a command over his or her investments and should be aware of every penny that is being spent. Also, a gymnast is very careful about balance and flexibility. In the investment space too, allocating asset should be done on the basis of your investment objective, as each asset class is meant to serve a specific purpose in the portfolio. It is paramount to have a balanced investment strategy for asset allocation so your strategy remains unaffected by the changing market conditions and make our goals achievable.
Like an archer, focus on your target and ace it
Archery is a sport of practice and skill. In a game of archery, the archer takes time to spot his target, focuses on how to aim and then adroitly aims at his target. The game is centric to hold the bow, predominantly over eye dominance and correct stance. In investments too, it doesn’t matter if you’re a new investor or an experienced one, it is crucial for the investor to know about his goals and how he wants to begin investing. Investing in mutual funds require the investor to identify his goals that he wishes to achieve, and chose a fitting mutual fund scheme and then plan accordingly to achieve his financial target just like the bowman who waits for long to focus on set an aim. Then he focuses on his aim well before releasing the arrow, to eventually hit bulls’ eye.
Like an athlete, run with endurance to emerge victorious
In a marathon, the athlete runs a long race with endurance and patience to emerge victorious. Investors too, invest to fund their long-term financial goals, and achieve them. Factually, the investment portfolio should have the potential to build wealth and help fulfill ones goals, and also address short term necessities. For instance, a mutual fund scheme that helps you accomplish your financial missions but a short-term contingency fund that aids you during hardships and also helps fuel your long-term financial goals. Also, being able to finish a race is more about the ability to strike a chord between the enormous energy the athlete exerts and to build stamina to sustain till the end, with colossal amount of perseverance. In the same manner, individuals should be able to identify the snappy expenditure and distinguish between saving and investing for the longer run.
Like a canoer, don’t panic and paddle on with composure
The canoe sport is a competitive, strenuous physical activity. The canoer, before embarking on a sprint prepares himself with determination to succeed, and to succeed in the sprint, one has to be strong-willed, patient and attentive. While canoeing, the sportsmen have to navigate through very rough waters, rocky and uneven surfaces. The paddler should be able to withstand the turbulent atmosphere with composure and not panic. This is possible because of ores and paddles that don’t allow the canoe to capsize. In investments too, an investor shall go through tricky market conditions or face a bearish market for long. By investing in Systematic Investment Plan, the investments remain unaffected of market situations because of Rupee Cost Averaging. The key is to not panic, but cautiously and consciously power through to surpass the dip and to keep going smoothly.
