The month of August brought in bad tidings for Indian cricket fans as the Indian team was decimated in a humiliating 3-1 test series loss to England. While Alaistar Cook and his men seemed to be in the top of their form, nothing seemed to work for our boys in blue. To simply say that it was a stroke of luck does not exonerate the cricketers of their responsibility.
Story: Likewise, if you do not pay attention to your finances and make all your investments work together as a team you could face dire consequences later in life.
However, we are not here today to criticize Dhoni and analyse what he and his men did wrong. Like every cloud has a silver lining, we believe that there are lessons to be learnt from every failure, however severe it may be. If you are die hard cricket fan who is still smarting from the humiliating defeat and cant get yourself to look at another cricket match India plays of now, we suggest you apply some of the lessons learnt to your financial plan and it will surely benefit you in the long run.
Give careful thought to your selection: One of the major reasons why team India failed was the fact that the team seemed hastily arranged vis-a-vis team England that was selected carefully as per their skill set. Thus, they did exactly what the situation demanded of them. Similarly, if you do not give careful thought to your investments and just pick some assets based on some advertisements on television or by way of tips you may have heard from friends, they may not be the right match with your financial plan. As a result, you will never be able to meet your financial goals and are not likely to have the funds when you need it the most.
Do not depend overtly on one asset class: While team India put up a poor show on foreign shores, Captain Dhoni held his own, putting up a brave front for the most part of the series. But in the end, he too succumbed to the pressure that was inflicted upon Indian batsmen by the English bowlers. From this example, you can learn that over -dependence on one asset class may make your portfolio lopsided and may spell doom in adverse market conditions. You should therefore construct a well-diversified portfolio, so that even if one