Hey everyone. Welcome to this awesome channel where you will get all your finance related questions answered.
✨What is share market?
✨Why price of shares go up and down?
✨Can it be a career?
✨What is trading, investing and speculating?
✨How to make money out of it?
And many more questions I receive from 100s of students everyday.
So I am making a seperate channel for this purpose. This group will be free for 1st 1000 students, after that it will be chargeable.
Content will be published by tonight. Daily new learnings will be provided.
Join here 👉 https://t.me/FinancialMonk
✨What is share market?
✨Why price of shares go up and down?
✨Can it be a career?
✨What is trading, investing and speculating?
✨How to make money out of it?
And many more questions I receive from 100s of students everyday.
So I am making a seperate channel for this purpose. This group will be free for 1st 1000 students, after that it will be chargeable.
Content will be published by tonight. Daily new learnings will be provided.
Join here 👉 https://t.me/FinancialMonk
Why investing is important?
Let's say you have done your studies 🎓 and now you are doing a job which pays you a decent salary. The income that you earn while doing job is known as 'Active Income 💵'
This active income will only be earned only when you work. Let's say you retire at the age of 60, how will you manage the rest of your life?
One may think that 'FD kr lenge'.
But do you know the 'Real Return' from an FD is almost 0%.
Let me tell you how 😉
Say you have Rs100 today and we all know that money is used to buy goods. After 1 year goods which were worth Rs100 1 year back are now worth Rs105. This increase in prices of commodities is known as 'Inflation'.
The return from FD is around 5-5.25% now a days and inflation rate in India is about 3-5%. So, in real, your wealth or savings are not growing.
So, first thing we must understand that FD is not an investment vehicle. It just gives us Zero Real Return.
✨Now how can one earn positive return?
✨How can one make a passive income? (Income in which you don't have to work. I will be enjoying coconut 🥤 at Goa beach and i will still be earning)
✨How to retire early at the age of 40 and still make huge money.
Everything will be covered in the upcoming posts.
Till then, keep sharing this channel and keep supporting @FinancialMonk
Let's say you have done your studies 🎓 and now you are doing a job which pays you a decent salary. The income that you earn while doing job is known as 'Active Income 💵'
This active income will only be earned only when you work. Let's say you retire at the age of 60, how will you manage the rest of your life?
One may think that 'FD kr lenge'.
But do you know the 'Real Return' from an FD is almost 0%.
Let me tell you how 😉
Say you have Rs100 today and we all know that money is used to buy goods. After 1 year goods which were worth Rs100 1 year back are now worth Rs105. This increase in prices of commodities is known as 'Inflation'.
The return from FD is around 5-5.25% now a days and inflation rate in India is about 3-5%. So, in real, your wealth or savings are not growing.
So, first thing we must understand that FD is not an investment vehicle. It just gives us Zero Real Return.
✨Now how can one earn positive return?
✨How can one make a passive income? (Income in which you don't have to work. I will be enjoying coconut 🥤 at Goa beach and i will still be earning)
✨How to retire early at the age of 40 and still make huge money.
Everything will be covered in the upcoming posts.
Till then, keep sharing this channel and keep supporting @FinancialMonk
Stock markets are closed on every holidays, but on day i.e., on Diwali, stock market are opens. It is called as Muhurat trading.
It is an activity in the Indian stock market which is done on the auspicious occasion of Diwali. Muhurat is a Hindi word meaning ‘auspicious time’. In the Hindu calendar, a muhurat is said to occur when the planets are assigned to bring good fortune & prosperity.
It is celebrated on the occassion of Diwali i.e., 14th November this year.
Following is the market schedule of the day:
It is an activity in the Indian stock market which is done on the auspicious occasion of Diwali. Muhurat is a Hindi word meaning ‘auspicious time’. In the Hindu calendar, a muhurat is said to occur when the planets are assigned to bring good fortune & prosperity.
It is celebrated on the occassion of Diwali i.e., 14th November this year.
Following is the market schedule of the day:
One may say, ye to bolne vali baat ho gyi. India mein kaise lga skte hai?
To do it practically, we have Index.
Just imagine you want to eat KitKat, Dairy Milk, Munch, 5 Star, Bourbon, Gems, Sneekers, Milky Bar, Melody, Eclairs and the list goes on and on.
If you buy them individually, you will end up with huge cost plus you may pick some less sweet candies too.
So, what we do is ask the people of India which candy is best(3-4 candies) and make a combo pack of it. ❤️
So, you will end up paying less plus you will get quality candies.
The same thing is here in Markets. To invest in India, we have top 50 stocks which represent India's Growth and we bundle these 50 top brands. It's called NIFTY 50. So, if you invest in NIFTY, you are investing in India.
2 questions :
1. How do we know these are the best 50 stocks. How to say which comes in top 50?
2. How to practically invest in NIFTY 50?
All these questions will be answered in upcoming posts.
Also, last night as we discussed about inflation and real growth. If you invest in NIFTY, you get a return of 10-18%. So, you are well protected from Inflation and your wealth also grows.
To do it practically, we have Index.
Just imagine you want to eat KitKat, Dairy Milk, Munch, 5 Star, Bourbon, Gems, Sneekers, Milky Bar, Melody, Eclairs and the list goes on and on.
If you buy them individually, you will end up with huge cost plus you may pick some less sweet candies too.
So, what we do is ask the people of India which candy is best(3-4 candies) and make a combo pack of it. ❤️
So, you will end up paying less plus you will get quality candies.
The same thing is here in Markets. To invest in India, we have top 50 stocks which represent India's Growth and we bundle these 50 top brands. It's called NIFTY 50. So, if you invest in NIFTY, you are investing in India.
2 questions :
1. How do we know these are the best 50 stocks. How to say which comes in top 50?
2. How to practically invest in NIFTY 50?
All these questions will be answered in upcoming posts.
Also, last night as we discussed about inflation and real growth. If you invest in NIFTY, you get a return of 10-18%. So, you are well protected from Inflation and your wealth also grows.
Financial Monk
One may say, ye to bolne vali baat ho gyi. India mein kaise lga skte hai? To do it practically, we have Index. Just imagine you want to eat KitKat, Dairy Milk, Munch, 5 Star, Bourbon, Gems, Sneekers, Milky Bar, Melody, Eclairs and the list goes on and on.…
Answer to the above 2 questions :
1. The best 50 companies are chosen as the top 50 companies by 'Market Capitalization'
Market Capitalization refers to (total shares of a company issued ✖ Market Price per share)
So, the company with highest number of shares issued and with highest market price make up to the list of top 50.
When one company gets slow, the slower one goes to 51st rank and another efficient company reaches to the 50th rank.
It's like you are always invested in the best stocks always. The inefficient companies get removed automatically. Isn't that cool? 😎
2. To invest in NIFTY 50, you can do from various apps. I will be discussing about various apps in the next post. You can do an SIP.
Now the question is
Q1 Which app is best which charges lowest commission?
Q2 What is SIP and why it's better than investing a lump sum amount?
1. The best 50 companies are chosen as the top 50 companies by 'Market Capitalization'
Market Capitalization refers to (total shares of a company issued ✖ Market Price per share)
So, the company with highest number of shares issued and with highest market price make up to the list of top 50.
When one company gets slow, the slower one goes to 51st rank and another efficient company reaches to the 50th rank.
It's like you are always invested in the best stocks always. The inefficient companies get removed automatically. Isn't that cool? 😎
2. To invest in NIFTY 50, you can do from various apps. I will be discussing about various apps in the next post. You can do an SIP.
Now the question is
Q1 Which app is best which charges lowest commission?
Q2 What is SIP and why it's better than investing a lump sum amount?
Financial Monk
Answer to the above 2 questions : 1. The best 50 companies are chosen as the top 50 companies by 'Market Capitalization' Market Capitalization refers to (total shares of a company issued ✖ Market Price per share) So, the company with highest number of…
Answer to the above 2 questions :
1. The best app which charges lowest commission is....... Groww app, Paytm Money App, ET Money App.....
In these apps, there are various products from which some charges high fees, some low fees and some no fees.
So, where to invest?
For investing in best Mutual Funds, just look for 2 things
A. It should have the word 'Direct' in its name..... This ensures that there is zero commission on that product
B. Make sure it have 'Growth' word in it.... This ensures that you get a higher return so that you beat inflation plus earn some more return.
2. For investing, there are 2 options
A. Lumpsum investing - Here, one can invest one time and forget his fund for 3-5-10-12 years and then see what's the growth.
B. SIP Investing - Here, the person invests some amount every month which helps the investor to average put it's deposits resulting in a more probable better returns than Lumpsum.
Let's talk practical
Where do I invest? I invest in 2 funds and do SIP
The funds are
1. Mirae Asset Emerging Bluechip Fund Direct Plan Growth
2. SBI Smallcap Fund Direct Growth
You can start investing with just Rs500
The homework for you all is do research on the above 2 Funds and research on more funds.
If you do research, you will come up with various new terms like CAGR, Expense ratio, AMC, NAV, Entry and Exit Load.
We will discuss more in later posts.
Happy learning ❤️
1. The best app which charges lowest commission is....... Groww app, Paytm Money App, ET Money App.....
In these apps, there are various products from which some charges high fees, some low fees and some no fees.
So, where to invest?
For investing in best Mutual Funds, just look for 2 things
A. It should have the word 'Direct' in its name..... This ensures that there is zero commission on that product
B. Make sure it have 'Growth' word in it.... This ensures that you get a higher return so that you beat inflation plus earn some more return.
2. For investing, there are 2 options
A. Lumpsum investing - Here, one can invest one time and forget his fund for 3-5-10-12 years and then see what's the growth.
B. SIP Investing - Here, the person invests some amount every month which helps the investor to average put it's deposits resulting in a more probable better returns than Lumpsum.
Let's talk practical
Where do I invest? I invest in 2 funds and do SIP
The funds are
1. Mirae Asset Emerging Bluechip Fund Direct Plan Growth
2. SBI Smallcap Fund Direct Growth
You can start investing with just Rs500
The homework for you all is do research on the above 2 Funds and research on more funds.
If you do research, you will come up with various new terms like CAGR, Expense ratio, AMC, NAV, Entry and Exit Load.
We will discuss more in later posts.
Happy learning ❤️
FD Rate ~ 5%
Tax - 30%
Post Tax FD rate ~ 3.5%
Inflation ~ 7.5%
Real Return on FD ~ (-4%)
If u r thinking of investing in an FD right now, I suggest you use that amount to buy/consume something right now because the value of your Investment is going to be lower by 4% next year
Tax - 30%
Post Tax FD rate ~ 3.5%
Inflation ~ 7.5%
Real Return on FD ~ (-4%)
If u r thinking of investing in an FD right now, I suggest you use that amount to buy/consume something right now because the value of your Investment is going to be lower by 4% next year
We must understand that risk and reward go hand in hand. Also, you must know about risk profiling.
Before that let's understand the popular asset classes :
⚡️ Equity i.e Shares
⚡️ Fixed Income Securities i.e Bonds & Debentures
⚡️Alternate Investment like Gold & Real Estate
The highest risk is in Equity and so is the return, then comes Alternate Investment and then Fixed Income Securities.
One rule that one should follow is 100-Your Age
Let's say your age is 22, so you should invest 100-22=78% of your capital into risky asset class like Equity & AI and putting 22% of capital is safe asset class like Fixed Income instruments.
Risk taking ability decreases as one grows in age. So, this rule helps in diversification of wealth and helps grow slowly, steadily and safely.
Before that let's understand the popular asset classes :
⚡️ Equity i.e Shares
⚡️ Fixed Income Securities i.e Bonds & Debentures
⚡️Alternate Investment like Gold & Real Estate
The highest risk is in Equity and so is the return, then comes Alternate Investment and then Fixed Income Securities.
One rule that one should follow is 100-Your Age
Let's say your age is 22, so you should invest 100-22=78% of your capital into risky asset class like Equity & AI and putting 22% of capital is safe asset class like Fixed Income instruments.
Risk taking ability decreases as one grows in age. So, this rule helps in diversification of wealth and helps grow slowly, steadily and safely.