NEVER invest your SALARY in Large Cap Mutual Funds | 10 SALARY INVESTING MISTAKES to AVOID
Akshat Shrivastavaγ»29 minutes read
The speaker shares profitable mutual fund investments, emphasizing index funds and the technique of bulk buying for maximizing salary investment returns and the importance of health insurance. They caution against blindly investing, advocate for understanding risks and returns, and suggest diversifying investments beyond mutual funds.
Insights
- Bulk buying is a strategy mentioned by the speaker to maximize returns from salary investments, promising further explanation in a video. It involves investing a significant portion of funds at advantageous times in the market.
- The speaker advises against blindly following investment trends and emphasizes the importance of understanding different asset classes, recommending a diversified approach with 80% in Blue Chip categories and 20% in small and mid-cap mutual funds.
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Recent questions
What is the speaker's investment strategy?
Diversified portfolio with index funds, bulk buying, and caution.
What advice does the speaker give on mutual fund investments?
Caution against randomly investing, focus on Nifty50 for lower commissions.
What does the speaker recommend for managing investments?
Understand investments, avoid overleveraging, diversify beyond mutual funds.
What is the speaker's opinion on Portfolio Management Services (PMS)?
PMS may underperform, charge high commissions, not always best choice.
What is the speaker's advice on investing in the stock market?
Join YouTube Community for stock market fundamentals, experiment with small cap or midcap mutual funds.
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Summary
00:00
"Maximizing Returns Through Strategic Mutual Fund Investments"
- The speaker shares an update on their mutual fund investments, having made a profit of one year within less than 12 months, with a Kager of 17%.
- Approximately 70-75% of their money is in pure index funds, with 56.53% in an index and 15% in funds of funds.
- They utilize a technique called bulk buying, promising to explain it further in the video for maximizing returns from salary investments.
- The speaker emphasizes the importance of health insurance due to rising costs, recommending Ditto Insurance as a reliable platform.
- They recount their initial investment journey, guided by a mutual fund advisor friend, leading to losses due to high commissions in a regular mutual fund option.
- A breakdown of average returns across different asset classes is provided, ranging from 6% in fixed deposits to 18%+ with good fund managers.
- The speaker advises against seeking extreme safety in fixed deposits, highlighting the importance of understanding risk-free rates of return and inflation's impact.
- They caution against randomly investing in mutual funds, citing that 68% of active mutual fund managers do not beat Nifty50 returns, advocating for investing in Nifty50 for lower commissions.
- Shankar Sharma's tweet is referenced, discouraging paying mutual fund managers for investing in Blue Chip companies like HDFC Bank, Nestle, etc.
- Recommendations are made to allocate 80% of investments to Blue Chip categories and 20% to small and mid-cap mutual funds, with a caution against PMS schemes due to their performance compared to mutual funds.
13:50
"Smart Investing Tips for Financial Success"
- PMS (Portfolio Management Services) may not always be the best choice, as they often underperform in various categories over different time frames.
- PMS funds typically charge high commissions, around 2%, which can significantly impact profits.
- Avoid blindly investing in unfamiliar areas; understanding investments is crucial to making informed decisions.
- Consider simple rules for investing, like understanding popular market instruments such as REITs (Real Estate Investment Trusts).
- REITs allow fractionalized real estate investments, making it accessible with smaller amounts like 500 rupees.
- Be cautious of unrealistic returns; if an investment seems too good to be true, it likely is.
- Bulk buying opportunities in the market can be advantageous; consider investing more during such times.
- Avoid overleveraging yourself financially, especially if a significant portion of your income goes towards debt repayment.
- Do not follow investment trends blindly; trend chasing can lead to financial losses.
- Salary earners should diversify their investments beyond mutual funds, gradually moving towards managing their own stock portfolios for better control and understanding.
26:38
YouTube Community: Stock Market Fundamentals and Growth
- Join the YouTube Community for stock market fundamentals at a subscription cost of around 150-160 rupees per month; experiment for a month and add some risk to your portfolio by investing in small cap or midcap mutual funds, not individual stocks; focus on learning weekly to enhance your knowledge and portfolio growth.
