Hit your investments for a six!
Game Plan for Success
The game of investing is just like a game of cricket, where the matches are won based on a well-planned strategy. Just as the captain of a cricket team strategizes his plays, based on a strategy, depending on the strengths and weaknesses of the opposite team, the game plan for success in investing requires a meticulously based strategy to ensure your investment game is strong and hits the right amount of fours and sixes in order to reach the investment goal, whether it is your retirement or the brand new SUV that you desire!
The Pitch – How to make the right choice
In cricket, every player on the pitch has a role to play, and and has to alter his or her strategy according to the condtions of the pitch. In the same manner, on the pitch of investing hitting the right ball for a six from more than 3,500 choices in mutual funds is what makes a difference!
Batting Averages
In every match that a player plays in, has to have a different strategy and has different averages in every match. No player has the same average in a match. His average may be low in a match where he has got out for a duck and may be high on a pitch where he has a century to his name!
Similarly, every mutual fund has past historical averages, and those with the highest averages in the past may not guarantee that selecting the one with the highest average is the right ball with which you can hit your investment goals for a six in the current match!
the right strike rate
A consistent player has a consistent averge and a high strike rate in a match often helps in deciding the winning margin both in terms of balls and runs.
On the investment front, making the right choice from from more than 3,500 options, makes a difference to the strike rate on your investments whether they shall underperform or outperform in different market conditions.
bowler's strike rate
In cricket, a player needs to analyze the style and the keep an eye on the ball and the bowler from the opposite team. This includes analyzing the bowler’s line, length, speed, etc before choosing the hit the ball for a four or a six!
On the investment pitch, one needs to understand the risks and the volatility that are associated with the type of investment and then choose those types of investments that the ace player can hit for a four, rather than choosing those that run him out by causing losses on his capital!
is your team strong enough to hit the maximum number? of sixes?
The Top Order: The seasonal opening batsmen, the mainstay of any game, whether setting a target for the oppposition or chasing a target down, are the backbone of your portfolio. Making the right choice leads the charge of your portfolio with innovation and growth in the right direction irrespective of the market conditions.
Strong Middle Order: steady performers in all types of market conditions that provide stability, much like dependable middle-order batsmen, who are able to turn around the match on a bad pitch.
Lower Order or Tail Enders: high-risk, high-reward players on certain types of pitches that can swing the momentum of your investments in varied market conditions.