Lusail:Argentina’s Lionel Messi celebrates with the trophy after winning the World Cup final soccer match between Argentina and France at the Lusail Stadium in Lusail, Qatar, Sunday, Dec.18, 2022 .(Photo:Suman Chattopadhyay/IANS)
Photo : IANSHINDI
Set a goal
Whether it is football or money, you need to set a goal to win. Many of you may not know that the top teams in the world plan for at least 10-12 years to win the World Cup. What you saw yesterday was a mere execution of the plan Argentina put in place many years ago… So, why shouldn’t you? Whether you plan to buy a new car, a house, or are looking for early retirement, it’s important to list out your time frame, how much money you would need for these goals and invest in products that can beat inflation and help you realize your dream.
-Plan how much money you need for your dream car/home/retirement
-Asset allocation is key to realizing your goals
-Don’t forget to factor in inflation
Track the top performers
-Focus on blue-chips for long term wealth creation
-Diversify among the top performers in every sector
-Wait for them to outperform
Watch the benchmarks closely
More than 205 teams participate in FIFA in the hopes of winning the World Cup, but only 8 countries have managed to do it so far. In the world of business, thousands of companies try to be among the top in the country, but only a handful of them are able to sustain their position at the top. The Nifty 50 is an index that tracks 50 of the top companies by m-cap in India and is considered a benchmark to beat. If you don’t have the time to track individual stocks, you could invest in an index fund or an ETF that tracks the Sensex or Nifty for inflation beating returns in the long term.
-Track Nifty 50 & Sensex closely
-Warren Buffet suggests people invest in index funds
-Index funds provide diversification at a low cost
Don’t be complacent
Germany is one of the best performing countries at the World Cup. But they faced a humiliating defeat in the first round. One mistake cost them heavily and they failed to register themselves for the knockouts. Don’t make the mistake Germany made, look at your portfolio periodically. If your portfolio is not aligning to your goals, seek help from an advisor to tweek your risk profile and achieve your goal.
-Track your portfolio periodically
-Seek advice to alter portfolio
-Stay on course to achieve goals
Small but consistent
Morocco, a minnow among football giants was an outperformer and by a huge margin… How did they do it? consistency. They ignored the noise around them and worked on their team consistently. Morocco made the round of 16 in 1986 for the first time… They were unable to get a better result for more than 36 years. But their government invested more money to promote the game and promote the right talent and their support staff and players learnt from their mistakes to beat top teams like Spain and Portugal on their way to the semifinals.
-Start small and invest in SIPs first
-Invest regularly even if markets are down
-Don’t look for short term gains
You could also beat inflation and create a stellar portfolio by investing in SIPs, it doesn’t matter if your investment is small, stay on course, invest even when markets are not yielding great returns and over the long term, you are most likely to have a portfolio that has beaten inflation and created great returns.
