BackVirat Kohli’s 5 money mantras
Key investment lessons that every investor can pick from the Delhi-based cricketer
Premium
Virat Kohli comes across as a spirited and aggressive player on the field. He is equally disciplined and a planner when it comes to his finances. After speaking to Kohli, his partners and his management team, here are some key investment lessons that every investor can pick from the Delhi-based cricketer.
Start investing early
Kohli is 27 years old and already knows the importance of investing. Besides physical and financial assets, he has also ventured into various businesses aggressively in the past two years.
When it comes to growing your money, the earlier you start saving and investing, the easier it will be to build a corpus. If you want to reap the benefit of compounding, you have to start early. Remember that if you start early the amount you have to invest for your goals will also be lower. Say, your current annual expense is 10 lakh at the age of 25. If you want to sustain a similar lifestyle after factoring in inflation at 6%, you will need 77 lakh during your retirement. This means you have to build a corpus of close to 11 crore. If you start investing at age 25, you will have to invest 28,000 per month to reach your goal, assuming a growth rate of 10% per annum. But if you delay and start investing only when you turn 30, you would need to save 35,365 per month. Kohli is on the right track here.
Don’t put all eggs in same basket
Kohli has diversified his investments across real estate, equity, fixed deposits and business ventures. His business ventures include a sports teams (football, tennis and wrestling), a fitness chain (Chisel), a tech startup (Sports Convo) and a fashion brand (Wrogn).
Remember that investing is as much about returns as it is about managing risks. Where the risk of losing capital is high, you need to look at diversifying by investing in more than just one asset class. Hence, make use of all investment vehicles that are available depending on your risk appetite and time horizon.
Invest in what you understand
A careful look at Kohli’s businesses will show you that all the ventures have one thing in common—his passion. The cricketer says that since he is into fitness and fashion, this has been a natural progression for him. Even in the sports teams, he has chosen to be associated with sports that he closely tracks. Kohli has focused on areas that he understands and enjoys. This holds true for his investment instruments as well.
Many people want to invest but they go by what their friends or family advises. You need to understand the products you invest in. Make the product selection keeping in mind what you need from the funds and your time horizon. If you don’t understand an investment instrument, try to learn about it or seek professional advice.
Plan for your retirement
Kohli knows that his career as a cricketer will be over in 10-12 years. So, he is building a portfolio for his post-cricketing career. He is already planning for his retirement. The thought of building a retirement nest comes from his awareness that the income from his cricketing career will not last forever. It is always important to plan for your sunset years and the sooner you start, the less taxing it will get in the subsequent years. To begin with, you need to have a target corpus in mind and complement it with cash flow discipline. Your retirement corpus depends on retirement age, desired standard of living, inflation, taxation and your current investments. Keep these in mind to arrive at a potential future cash balance.
Seek professional advice
Just the way Kohli seeks advice from his coach to improve performance, he prefers professional help for personal investments as well. He says that every business venture and financial investment is undertaken only after taking professional advice and looking through the nitty-gritties. It’s important to remember that money has to be not only earned but also managed productively. If there are areas of financial planning that you are not able to manage on your own, then seek help. Your financial planner or adviser will not only help you make the appropriate investment decisions but also reset the financial discipline that you need to achieve your goals. A dedicated financial adviser whom you trust can bring clarity and stability to your money life.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
