Your Investment Premier League team needs multiple players to win

As published in The Telegraph on 19 April, 2017

When you watch IPL what do you see? There are 8 teams. 11 players from two teams on the ground.

But when the camera pans, you see there are 10–15 more people on the bench.

They are the experts and professionals who ensure the team is prepared for a win.

There is:

- The mentor and head coach

- The batting coach

- The bowling coach

- The fielding coach

- The physio

- The game analyst

Your investments need such a mix too. Here’s why:

- Different goals, different players:

The batting coach helps improve batsmen’s ability to score, but not the bowler’s ability to take wickets. You need specific expertise. Similarly, an Equity fund that helps you create wealth over a span of 15 years cannot help you protect your money over a period of 2 years. Those are two different goals. Ensure you invest differently for each goal.

- You need a mentor and head coach:

A captain is a must to lead a team to victory. But off the field, it is the coach that directs the team well. In the case of your investments, it is a financial advisor. Otherwise, you could invest in a haphazard manner. This could hurt your money more often that it helps. In the case of your investments, the coach also plays the role of a game analyst. He looks at every single ball and analyses the performance.

- You need special coaches too:

Yes, a head coach is good. But you need more than that. This is where fund managers play a great role. Each fund manager ensures you get access to the right set of assets, be it stocks, debt instruments or even a mix of both. The fund manager knows what your end goal is. And he helps you be win.

- You need a physio:

Injuries are inevitable. There’s no single player in any game who has never been injured. The physio nurses you back to good health. Similarly, emergencies are bound to happen in life. And in this case, it is an emergency fund that can help you bounce back. Make sure you have a mix of Liquid Funds and Insurance in your emergency fund.

A strategy is of no use if you do not have the right support. We are not just talking about the playing 11, but also those on the bench and the support staff. The same goes for your investments too!

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