Investing Lessons from Cricket: Think Like a Captain

Cricket and investing may seem worlds apart-but they share a surprising number of parallels. A seasoned captain doesn’t just pick the eleven best players, he picks the right eleven for the pitch, opposition, and match situation. Even with Virat Kohli in the team, it took 18 long years for RCB to lift the trophy. Similarly, a smart investor or a good financial advisor builds a portfolio not just by chasing past winners but by understanding the market conditions, ensuring the right balance, and selecting schemes that work well together.

Let’s explore three key cricketing concepts and what they can teach us about investing wisely.

1. The Pitch = Market Conditions

In cricket, the pitch dictates strategy. A green, bouncy pitch demands fast bowlers. A dry, dusty surface? Time to unleash the spinners. You don’t take the same team to every ground and you shouldn’t take the same approach to every market.

In investing, the “pitch” is the market environment. Is the market overheated, with high valuations and stretched sentiment? That’s when you need funds with lower downside capture—schemes that preserve capital and resist sharp falls. On the other hand, when markets are recovering or in a strong bull phase, upside capture becomes critical - you want funds that can ride the rally and amplify gains.

Like a good captain, a smart investor adapts to the pitch. Understanding where we are in the market cycle can help adjust exposure, tilt toward safety or aggression, and position portfolios optimally.

2. Team Balance = Portfolio Construction

Even the greatest batsman can’t win matches alone. A good team has a mix—openers to weather the storm, middle-order batsmen to consolidate, finishers to score quick runs, and bowlers with varied styles. A team full of star players who don’t complement each other may still lose.

Portfolios work the same way. It’s not about picking the “best” funds - it’s about how they work together. For example:

• A portfolio filled with high-beta growth funds might do great in a bull market but suffer steeply in corrections.

• Conversely, a mix of value, quality, momentum, and income strategies can smooth out returns and manage risk better.

Your portfolio should reflect your investment horizon, risk appetite, and financial goals. A lineup full of “Dravids”, solid but cautious, may not generate enough thrust for short-term goals, while a team of “Sehwags” could be thrilling but risky.

3. The Players = Scheme Selection

Picking schemes is like selecting players: past records matter, but so do current form and context. A legend who’s past his peak may not serve the team well today. Likewise, a fund with great 10-year returns might be underperforming lately, or not aligned with current market themes.

Evaluating mutual fund schemes goes beyond just looking at returns. Advisors consider:

• Current positioning and sector bets

• Fund manager style and strategy

• Risk metrics (volatility, drawdown history)

• Consistency across time periods and conditions

Also, just like a captain may bench a good player out of form, you sometimes need to exit a once-great fund when it no longer fits the team or the pitch.

Summary: Captains Win Matches. Advisors Win Portfolios.

Cricket captains win matches not by picking the 11 best players—but by picking the right ones, in the right conditions, in the right combination. That’s also the role of a financial advisor.

A good advisor:

• Understands the “pitch” and adjusts your portfolio accordingly

• Ensures team balance - your investments aren’t all swinging in the same direction

• Tracks scheme “form,” helping you stay with winners and drop laggards

Like a great captain who brings out the best in his team, a great advisor brings clarity, confidence, and discipline to your investing journey.

Think like a captain. Invest like a pro. And if you’d rather focus on the match of life, let a financial advisor be the Dhoni to your team.