We’ve bought £50 of shares on Football Index to see how far it can take us

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How do you compile yours?

Much like eating a cream egg, putting together a Football Index portfolio is not a ‘one approach fits all’ exercise.

Dead certs, niche stars and up-and-comers. Scorers, assisters, clean-sheeters.

You could carry that on to the nth degree.

The basics

Ultimately though, making money on Football Index is done in four ways, and any strategy you take should have those outcomes in mind.

The four ways are:

Capital appreciation

This means: The shares you own in a player rise in price as other people buy shares in the same player

Media Dividends

This means: If a player ends the day as the most mentioned in the media, and you own shares in him, then you will receive a ‘dividend’ of up to 3p. As an example, if you own 100 shares in Marcus Rashford, then you could make up to £3.

Matchday dividends

This means: Similar to the media dividend, if a player performs the best on a matchday, and you own shares in him, then you will receive a ‘dividend’ of up to 3p. Once again the Rashford example would apply here.

In-play dividends

This means: A relatively new concept which gives you the chance to win matchday dividends in the first 30 days of owning a player. Typically the previous three methods will drive most of your trading, but if you think a player will face a number of leaky defences in the next month, then you could pick up some nice bonus winnings through this.

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READ: Forget accas and make the most of your knowledge on the football stockmarket

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Now let’s say you had a cash pot of £50, where would you start?

Well, as a seasoned Indexer, it’s an experiment I wanted to undertake.

So here goes – copy as little or as much of my guidance as you wish!

I’ve always got my eye on the long-term. Probably thanks to managers in my old Mergers & Acquisitions job yelling, “Always think about the exit!”, or a housing market where I don’t want to be left with an unsellable shack.

But it’s got reason behind it. High-potential, up-and-coming players have many years at the top ahead of them, which drives traders to buy them up. It’s something that will inform my portfolio strategy.

My picks

I’m going to start with Jadon Sancho (£6.48 at the time of purchase).

There’s a reason he’s one of the favourites to win FIFA’s Golden Boy Award this year.

Some players are media darlings, or on-pitch guns. But Sancho is the golden ticket, in that he can make you money from capital appreciation, as well as media and matchday dividends.

To expand on this, he has potentially 15 more years at the top level – a factor which will drive purchases of his shares for the foreseeable future.

His displays for Borussia Dortmund also mean he is a candidate to move to one of Europe’s very biggest clubs, which drives media dividends.

And lastly, his increasing goal involvements make him a regular candidate for matchday dividends.

Next up, I’ve picked up some Erling Braut Haaland (£3.25). Son of Alf-Inge, the Norwegian couldn’t have been much more prolific so far this season. Manchester United and Napoli are said to lead the race for his lethal boots, which have already slammed in an extraordinary 23 goals in just 17 appearances for RB Salzburg this season.

I believe more and more shares will be bought in him if he is linked with a move and continues scoring. His goals should net me matchday dividends too, and then when January rolls around he will hopefully bring in media dividends.

Like any football manager compiling their squad for an upcoming season though, I need a balance. I can’t just have high-potential players. I need some here-and-now-ers to get me guaranteed matchday dividends.

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READ: The 10 players whose values have risen most on Football Index so far in 2019

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Come in Kevin De Bruyne (£5.49).

After an injury-hit season last term, the Premier League’s assist extraordinaire seems determined to make up for lost time. As dead-eye bets go, he’s up there.

He’s incredibly fit, so he racks up the minutes. He also plays in arguably Europe’s most creative team. And he has the likes of Sergio Aguero finishing his chances. Boom.

In this category I’m also going to put Harry Kane (£5.37). His 174 goals in 266 appearances for Spurs tells you all you need to know about his goalscoring quality. I know banks say past performance is no indicator of future returns, but this is pretty incontrovertible evidence that matchday dividends are on the way to my account.

If this wasn’t enough, Real Madrid continue to sniff around him, making media dividends likely too.

I’m going to round off with two more picks, one a wildcard, and one an exception.

First the wildcard – Stefano Sensi (£3.07) of Inter Milan. The summer loanee from Sassuolo has started the season with a bang under Antonio Conte, with three goals and two assists to his name from just 456 minutes in Serie A.

Not just that, but there has been strong speculation lately of a swap deal with Barcelona, which would see Ivan Rakitic heading to the San Siro and Sensi to the Camp Nou. In the interest of bolstering my media dividend pot, I selfishly hope these rumours continue and that the move transpires.

Lastly the exception. You can probably guess. Who else but Lionel Messi (£6.69)?

No other 32-year-old would be close to the top of the Index, but Messi is Messi – and his mind-blowing, evergreen feats show no sign yet of stopping. Which is why he’s double the price of old foe Cristiano Ronaldo (£3.27).

He is a freak, and this translates into regular matchday dividend winnings.

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READ: How the most valuable players on the Football Index have changed since 2016

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So here’s how my portfolio shapes up:

Jadon Sancho – £6.48 – 1 share, £6.48

Erling Braut Haaland – £3.25 – 3 shares, £9.75

Kevin De Bruyne – £5.49 – 1 share, £5.49

Harry Kane – £5.37 – 1 share, £5.37

Stefano Sensi – £3.07 – 3 shares, £9.21

Lionel Messi – £6.69 – 2 shares, £13.38

Total – 11 shares – £49.68

At the moment it looks balanced and – like any good stock portfolio – fairly diversified, with a mix of nationalities, leagues, ages and positions.

But injuries and loss of form could hit at any time, so my picks today may not be the picks I want tomorrow, and as I monitor my portfolio, I will likely buy and sell as I see fit.

Selling will lose me money, as that’s where Football Index takes a commission. But that may be an acceptable loss if a player is ruled out for nine months and the likelihood of his big move evaporates.

But for now I’m positive – watch this space for how I do!

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By Rob Hemingway

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