IPL Auction 2023 V/s Your Portfolio ???

In April, 2023 and we all know what time it was. Yes, it’s the time for Indian Premier League a.k.a. IPL. The time of the year when whole of our nation comes together and celebrate this festival together. But, in this article we are taking one step back and are going to discuss about  IPL Auction which were held few months ago in December and try to compare it with our market.

PORTFOLIO

IPL teams have the option of retaining their players and not letting them be a part of the auction bidding process. Similarly, when it comes to your own portfolio, spend enough time to understand why you want to retain some of your stocks or mutual funds. Studying their fundamentals, understanding the use case of these investments, doing thorough research are all important factors to consider.

OBSERVE THE SEASONAL TRENDS

In IPL 2023 auction, we saw a significant amount of money being spent on bowlers and it has been observed by many that on pitches with grass cover, fast bowlers get an edge whereas, on slower-loose tracks, spinners get an edge. In investments also you should be on the lookout for trends to keep yourself informed before you decide anything. For example, pharma stocks performed decently well during the first wave. That, along with the IT sector, was a few of the sectors which recovered the fastest after the waves receded. Studying the overall economic environment – where the GDP is heading, interest rate risks, inflation rate, and similar factors – becomes an important part to choose which company will be suitable for the time period you are investing in.

It’s a TEAM!

At each franchise table, a viewer watching the auction will also be able to see a group of people sitting behind their laptops – these are usually the analysts. These analysts have the data of all the players that are up for auction – how they have performed in the past, average run rate, average wickets per match. They suggest whether to bid for a player and also tell the price at which the bid could be made. Similarly, do not hesitate to take help if you require knowledge and information for your investments. Instead of making investments on facts that you are partially sure of, you can confirm the information through official sources. Taking qualified professional help rather than advice and tips can prove to be a significant difference in how investments play out.

QUALITY AND QUANTITY

In this year’s auction, Sam Curran received the highest bid when Punjab Kings spent Rs 18 crores for bagging him. On the other hand, Ben stokes was picked up byChennai Super Kings for a whopping Rs 16crores. Valuation is a tough task be it IPL auction, business or investments. Some teams, as seen in the cases above, spend a significant amount of their purse on one or two investments in the form of players. This is done after a lot of careful deliberation. In investments as well, some investors prefer to devote a significant amount of their portfolio to some stocks about which they have in-depth knowledge thanks to hours of research and information gathering. But as it happens, there is no guarantee that a player who bagged crores of rupees will play as expected during the testing times. So is the case with investments. Investors can be wrong about their judgment and may end up overpaying for certain investments which do not deliver returns in testing times. From the above mentioned points, we can conclude that whether it’s a game of IPL or a game of Market; knowledge and professionalism is the key. A wrong bid on a player or a share can give you a hefty amount of monetary pain. So, just be aware of your environment in which you are dealing with, try to get as much knowledge regarding the same and be ready for the time to hit a SIXERR!!!!! For getting more updates kindly follow us @ https://www.bjpassociates.com/category/blog/ In case of any queries you may reach out to us at – info@bjpassociates.com or bharat.poplani@gmail.com or call us at 01762-525520 or 9646380245