Hello Everyone welcome to our website tech speaker’s.in, today I’m explaining how to invest your savings income into best sip & mutual funds, I’ll explain if your beginner this article very useful for you. for you so simply that you would be understanding this even with no knowledge of finances, which the Indian education system never provides for you. lastly I would want to say that every single investment it’s your own personal choice and you should not take anybody’s advice upfront and it’s all subject, to Market risk with that disclaimer out of the way let me start by telling you exactly.
How do you start investing from zero so my friends you might have just landed a job congratulations and your salary might be ranging from just 10,000 rupees which was in fact my first salary all the way to 2 lakh 3 la rupees per month so for the varied amount of people that going to be watching this video I’m going to be assuming a mean salary of 50,000 rupes per month it’s also going to keep the calculation simple so let us start the first thing before you start investing is to calculate how much of the money that you are actually saving, and how much of it are you spending so the easy way to do that is using the spreadsheet which I made for you guys by the way script little bit down you can see that..
download and calculate on your own the first thing that we spend money on are the fixed things for example the rent the tution fees of your college the food that you have to buy the groceries that you have to buy the emis that you have to pay the fuel for your different vehicles and this all comes out to be a fixed thing but apart from that there’s also the things which are optional so things like going out for parties hanging out with friends taking around the world all of these are optional things but still I’m going to Rupees then we’ve got our rent let’s say I’m paying a rent of 4,000 rupees I’m spending around 4,000 rupees on food petrol I’m spending maybe 1,000 rupees.
So in emis let’s say I have got an iPhone which I have purchased maybe I’ve got an Emi of ,000 rup for that then we have got our travel so travel may maybe you’re going out to your house maybe you’re going out with your friends all of these come under travel so let me just put in 4,000 rupe so the train tickets the stay and all 4,000 is good for party 2,000 Rupees that once a while in a Sunday your friends come over you order a lot of food and for yourself maybe you like to buy new accessories maybe you like the shoes the clothes all of that I’m putting it around 2,000 so we got 22,000 as our expenses this might vary from person to person this but this is generally the amount that I spend on myself.
When you subtract this from your salary you get around 28,000 rupees.which are left with you guys this is the 28,000 rupees that we’ll be investing in this article and I’ll be telling you exactly how and where do you invest but before we start investing. you should know that there is something called as an emergency fund what is this emergency fund let’s say that tomorrow your employer calls you and they tell you that you are fired from your job and let’s say that the new job opening starts 3 to 4 months down the line how do you survive in these 3 to 4 months the answer to that my friends is something called as an emergency fund a emergency fund is that amount of money that will tide you over some unexpected things that happen in your life so the usual way to calculate it is to calculate your total amount of spends in a month for our case it was 22,000 rupees and multiply that by 6 months so 22,000×6months ?
that you’re covered for let’s say the next 6 months so using our formula in our Excel sheet we’ve already got 132,000 rupees as your emergency fund now 6 months is the ideal time you can cover it for 3 months you can cover it for 4 months even for just 1 month if you feel like you’re confident with respect to that matter or if you’re living with your parents and you feel like they will help you out from time to time but for me I would say 132,000 is a very good emergency fund that I can take a 6 months break and I cannot rely on anything I can still live a good and decent life and not have to worry about where how am I going to pay the rent or how am I going to pay my loans so your first goal from your salary should be to save some amount of money for your emergency fund so out of the 28,000 Sa rupes that you were saving each month just remove 10,000 rupes from that and put it in your emergency fund because it will save you because it is very important once you have got your emergency fund made or at least 60% of it is made then you can start considering the investment options very rigorously you don’t have to remove 10,000 rupes each month from your saving just to put for your emergency.
You about various different parts where you can invest your money the first thing where I would like you all to invest your money is something called as mutual funds what exactly is a mutual fund well to understand mutual funds you first need to understand stocks what is a stock a stock is a small ownership of a company in exchange for some amount of money for example Apple let’s hypothetically imagine that one stock of Apple costs 5,000 rupees you will give 5,000 Rupees to Apple and they will get you one stock One stock is a part of the ownership of the entire Apple company on receiving that money the company will development they’re using it to build more products as the company grows the fraction of their company which you own also grows so maybe you bought it for 5,000 rupees next year it will grow to 6,000 rupes this is the absolute simple basic buying and selling of how stocks work now there’s a simple problem with this stocks are highly unpredictable what do I mean by that that means they vary on a day-to-day basis hour to hour basis and even a second to Second basis the valuation of the company and the stock price goes up and down a thousand.
Times over the course of a month and you don’t have the time effort or the energy to monitor what time do you have to buy and what time do I have to sell imagine if I hired somebody that I called as a fund manager and I asked him find me maybe 100 companies like apple which are growing each day and this fund manager is the one person who will be looking at which companies are going down which companies are going up and out of these fixed 100 companies which companies should receive what amount of money and I give that fund manager 5,000 rupees okay my friend this is 5,000 rupees now you go ahead and buy stocks or buy different asset classes from the different companies which you have selected and invest according to you now this my friend is called as a mutual fund and the person who manages a mutual fund is called as a fund manager so when you are investing in mutual funds you are not putting your money into just one company you are putting your money in several different companies now there’s an obvious benefit to that let’s say that you give 5,000 Rupees to so many.
Different companies out of 100 companies if 30 companies fail 70 companies will grow and since more companies are growing than they are failing your overall money asset will go up in price based on this there are several
different types of mutual funds one is a debt fund another is an Equity Fund and lastly one is called as the index fund Inde we’ll be talking about index funds as well as Equity Funds in this video let’s talk about index funds so Index Fund
basically a ranking system one of the common index funds that you might know is called as a nifty50 Index Fund in which the top 50 companies in India they are ranked from 1 to 50 and in these 50 FTY 23250 Call company whenever you give 5,000 rupes to the fund manager they will apply that 5,000 rupees in the top 50 companies the beauty of this is that when acompany let’s say at 46 or 47 number
goes down to 5657 some other company takes his place so you are investing
the company which are only in the top 50 not the 501st not the 52nd they might come back they might go down but you will be investing only in the top 50 so this investment will be only taking place in a ranked order so you are assured that only the companies who are consistently at the top are getting your money that’s called as an index fund.
Second is the Equity Fund in which the companies are decided so I’ve already decided 100 companies and in this 100 companies irrespective of whether they go up or go down I’ll be buying a piece of that company as a shareholder this is the asset class which is personally my favorite because in here we get high risk High reward and at a young age of around your 20s you are expected to take high risk High reward because in the older age you cannot those were the two types of mutual funds there is the third type also called as the debt fund which I’m not going to be talking about in this video like I told you about the index fund let me tell you a bit in detail about the Equity Fund that we were talking about depending on the number of companies that you have in one mutual fund that mutual fund is divided into three or four categories let’s talk about the small mutual fund in the first place these mutual funds my dear friends they are highrisk high reward and this
Place these mutual funds my dear friends they are high risk high reward and this is the place where I usually will put a lot of my money in because I like the high reward aspect of it similarly you’ve got midcap and multi cap will obviously have the lowest returns but it will have maximum safety it will not give you that much returns but your money will be assured that it is not going anywhere mid cap fund is somewhere in between of this so out of all of these mutual funds that you talked about ano where do you actually put your money the start investing in the in small cap funds a few midcap and a few multi cap small cap should always be on your Mutua portfolio it is absolutely essential that you have some small cap because at this point only you can take the risk how do you invest my friends.
how do you start investing you will need your AADHAR card you will need your pan card and a few other bank details necessary and you can start by downloading any application on the market we’ve got grow we’ve got
NJ all of these are different applications you can log in sign up for that and start investing in mutual funds there are better article than this one that will teach you an exact step-wise guide and how do you buy a mutual fund so now that I’ve talked about my mutual fund how do you make sure that you are putting consistent 5,000 rupes every month in mutual funds and that is where the concept of sip comes into place sip is something called a systemic investment plan it’s basically like an Emi that automatically gets deducted from your bank account but instead of going towards your loans it goes towards Investments what an sip does is that irrespective of how high or low the market is going if you’re averaging out your money spends over the course of an entire year the high and low of the market will be negated and you get a good deal almost every time one pro tip I’d like to give you over here is that whenever the market is going down that means whenever you feel.
Like the stock prices are going down the sensex is falling that is the best time to buy anything with respect to the stock market because essentially all the stocks you’re getting at a lower price and eventually Market does come up always always the market has to come up and when it does come up the same thing which you bought for a lot cheaper is now a lot bigger mutual funds are not something that are going to give you return in one or year or 2 year or even three or 4 years I myself have been investing in mutual fund points for over 3 years at this point and still my returns are humble they are not extremely good they’re not extremely bad but they are right where it should be if somebody’s promising you quick money they are actually lying to you but if somebody’s providing you an in detail guide about how do you invest you should
Definitely subscribe to that channel mutual funds will actually provide you very good returns when you invest in them for a lot of time so if you have an sip that is continuing for 10 years 20 years 30 years that’s when you’ll see exponential returns and that’s the magicof it how does exponential returns happen let’s say that you’ve got a corpus of 5 rupes and on that you making 7 lakh rupees that 2 lakh is already added to your Corpus and next time whenever the price goes up the 7 lakh will grow second thing I want to talk
about is fixed deposits fds they are one of the best kind of Investments for secure holding of money and they are very liquid that means if you have an FD with the bank you can go in the bank right now and by the evening you will have that money in your account there is nothing bad in doing fds the social media influencers are telling you you should put all your money in mutual funds and stocks but it is honestly okay if you’re doing your own FD as well usually NFD is a pretty low returninvestment but it is one of the ways in which you can keep your emergency fund you can keep a liquid asset that you can uh immediately use whenever you need it it’s a packet of money that you’re giving to your bank account and telling them to keep it for safekeeping however if you compare that to mutual funds the average returns that you should expect.
Per year on a mutual fund is more than 12% 12% is the minimum of course like i told you mutual funds are not to be taken on a year year-wise basis they are for a decade wise basis actually on a decade wise basis it is expon ential you can’t even put a percentage to it per anom I would say fds give you around 6.5 to 7% interest rate but there is no risk associated with FD and that’s one of the safest Investments that you can do how do you do NFD you go to the bank you tell them that you want to do NFD they’ll give you a form you sign that form and then you give them a check and that’s how n FD is done all right let’s talk about the next thing and that is individual stocks individual stocks like
I explained to you what stocks are are very very risky so if you don’t know what you’re doing I would say get well informed get well educated about the process and only then start start in it I personally have never invested a huge amount in any of the stocks because I find it to be too risky and not worth my time however as we grow older and we get more knowledge about the stocks I’ll definitely be making a dedicated video on it next investment is one of my favorite ones and it’s called Metals so metals like silver and gold I really really love them I’ve invested some of my money into buying them there are two or three direct benefits of having these Metals in the first place first of all I’d like to talk about silver because if you look at the graphs silver has given
you a more return in the last 3 4 years compared to gold gold definitely is always a good long-term asset especially for females who can actually make jewellry out of the gold let me tell you exactly how does gold work so I think around 2018 if you look at the price of gold it was around 33,000 rupees per 10G it’s 2024 now and the last price which I checked was 80,000 rup per TOA so if for 80,000 today it has definitely beat inflation it has definitely beat a lot of fds that you can do whenever you’re buying gold there are two ways you can actually buy it one is the physical gold gold which I really love I’ll tell you what that is the purity of the gold is calculated on the basis of carat so 24 Karat equals 100% Purity 22 karat is a little bit mixed with some other metals so that’s how we calculate it pure 24 karat gold is the gold that you should.
Be buying if you are looking for Investments and what exactly should you making charges the lower the making charge the more amount of return that you’ll get in the future of course when you start to buy fancy items with gold the making charges can go very very high they can reach up to 50% 60% sometimes you might be tempted to buy a gold jewelry you can do that if you have a think gold coins are the best way to go and they also look good in your collection if you have gold coins when you look at them you feel genuinely good the second way to buy gold is to buy gold bonds however I’m not that experienced to comment on that you can definitely read up on that on your own but from what I’ve heard is that the long-term capital gains tax and all of the different taxes involved actually make gold bonds it’s not that different from buying actual physical gold secondly the metal that you can invest, in is silver silver has given a better return compared to gold in the last few years and there is one beautiful aspect of silver is that when you are buying.
silver utensils no pan card no AAR card is required and when you’re selling those utensil there is literally no pan card AAR card required because they all come under personal belongings the same way that you buy let’s say parle biscuit you are not required to give your pan or Adar similarly for silver you are not asked for any of that last but the most important asset in which you should invest in is yourself so investing in yourself is one of the most underrated things you can do when you invest in yourself when you learn new things when you learn new skills that’s when you actually have exponential returns more returns than mutual funds thank you for visiting our website visit again…
