5 Ways to Invest your First 1 Lakh (Tamil) | Mutual Fund VS Index Fund VS ETF VS Stocks VS Smallcase

Smallcase Celebrating India @75 App Link:

After watching the video ” complete guide on sip” uploaded in the channel recently… many asked us the difference between mutual funds, stocks, and etfs through their comments and instagram dms further many asked us how to and when to use etfs too so, in this video… we are going to learn the differences between active mutual funds, index funds, etfs, stocks, and

Small-cases you should know the differences between them to use the appropriate stuff at the correct time/moment you won’t have to regret in future on the investment mistakes you made in past because, as you know the differences… you can take decisions according to your investing style i said about direct mutual funds, index funds, stocks, etfs, and smallcases in this

Video a common feature of these investment instruments is that they don’t have a guaranteed return also, your money will be in the share market regardless of the instrument used to invest simply there will be no guaranteed returns in the share market so, if there are no guaranteed returns… you may think why do most people invest in these… instead of investing in

Debt instruments like fd with 5%-6%, bonds or in guaranteed return plans given by insurance companies which are safer thus, you may think why most investors invest in the stock market instead of investing in things that give guaranteed returns many invest in the stock market instead of choosing guaranteed returns though the risk is high if you ask the reason for their

Mindset/point of view to be like this 2. you are saving for your retirement or for any future life requirements by now 3. you believe that the indian economy will grow in the long term 4. you know who is warren buffet and about compound interest as he did, if we started to invest from a young age… you know that this is the simplest way of becoming rich in the world

Through the power of compounding it is a simple formula used to calculate the time that’ll be taken for your investments to be doubled for example… consider that you have invested 1 lakh if your return% is 6%, you should divide the 1 lakh by 6 so, you may see that it will take 12 years for your invested amount to be doubled if your return% is 8%, then it’ll take 9 years

To be doubled to explain in detail, if 1 lakh grows with an annual return of 8% so, if we add it with the inflation… it will not be a return thus, money that is not needed for a long term or kept aside considering unwanted for any future purpose most people get satisfied with fixed return schemes because they do not know these 5 things if we give time for these types of

Long-term investments… it’ll build a portfolio in terms of crores that you cannot even imagine so, you may understand that these are the reasons for investing in the stock market as you understood the reason for investing in the stock market… you will have several options in front when you decide to invest as we saw at the beginning you should know the differences

Between these options to identify the correct time to invest in each stuff to gain benefits so, come let’s learn the differences between the investing instruments we saw at the beginning it will be very easy to take investment decisions if you know these differences there are 2 options namely index funds and etfs among the 5 options you see simply, if you want a particular

Amount to be automatically invested monthly you agree that you don’t have knowledge of the stock market… further, you say that you only know about investing in the top 50 companies in india… it’s market average return will keep fluctuating… and during your retirement stage… your money will be multiplied much time so, you are with a satisfied mindset considering

It enough for you thus, these 2 options (index funds, and etfs) are the best option for a person with a mindset like you because they not only give you the average return of the market but also has the lowest expense ratio moreover, etfs have the lowest expense ratio when compared to an index fund if index funds have an expense ratio of 0.18% or 0.20%… you don’t need a

Demat account to invest in index funds it is because you get the index mutual funds created as a folio number in an asset management company but in etfs, you should open the trading portal of your trading account… such as kite in zerodha, using the app or websites of angelone, upstocks, etc… you can buy these etfs via the trading portal of your broker these etfs can

Be traded only during market hours which from 9.15 a.m. – 3.30 p.m. on working days if you are satisfied with the average return of the market but confused about which one to use out of the two… let me give you an example of how i use these two to invest personally and you intend to invest monthly as you get the salary further, you don’t have knowledge of the market and

Also you don’t have an interest too and if you are satisfied with the market average return… you can simply do sip in an index fund but if you say that you’ll observe/ watch the market and its trend actively… and also, if you have the option to allocate time for the market between 9.15 – 3.30 thus, if you intend to invest a lump sum in the bottoms when the nifty is

Being traded in a high range because if you placed an order in a mutual fund or index fund when the market is down via an asset management company… you cannot invest in the exact place you intended to invest because it takes 1 or 2 days to process an order… so your order will be placed above or below the position you expected but during a market crash… if you intend

To invest by today as you won’t get an opportunity like this again… you can instantly place the buy order in the exact place you need only via etfs in order to gain an advantage during a market crash in case if you don’t have a demat account yet, i have given the links to the free and paid accounts that i personally use in the description of this video you can open an

Account if you need an account to invest as you know these details… you have learned the simple investment methods if you are satisfied with the market average returns… then the things you learned till now are enough but if you aren’t satisfied with average returns… instead, if you wish to outperform the market if you are in a mindset of outperforming the market by

Gaining return percentages such as 17%, 20%, or 25% then, you should consider the categories like mutual funds, smallcases, individual stocks in these 3 categories… you won’t need a demat account in mutual funds you can invest simply via an asset management company but if you want to invest in either in a smallcase or individually selected stocks, you need a demat account

The main difference between selecting individual stocks yourself and selecting mutual funds, index funds, etfs, and smallcases is… you’ll get a ready-made portfolio in these 4 options you’ll get the top 50 companies in india as a portfolio the fund managers would have built a profitable portfolio in which, you can invest if you wish in small cases, market experts would

Have built some stocks or etf portfolio based on a theme or an idea which are available ready-made you can buy and store them in your demat account with a simple click but when selecting individual stocks… you wish to outperform the market… but you select a stock with an assumption that it’ll give you a 20-25% cagr return and invest in it you come to these 3 options to

Outperform the market but when selecting mutual funds…you will be charged a high amount of expense ratio such as 1%, 1.5% not only this but also as you invest via an asset management company… dividends will not be credited and you won’t have a clear idea whether those dividends are being reinvested in those mutual funds so, when you are investing in these mutual funds

(Actively managed funds) for the long term… there is no guarantee whether the fund manager will consistently beat the market… but there is a guarantee that they’ll charge the expense ratio at the correct time so, when you build a big portfolio in the same mutual fund by lakhs in fact, even stock market experts like warren buffet, john c bogle has said that… any actively

Managed funds cannot beat the index in the long run so, why should you pay a high expense ratio for mutual funds which won’t beat the index in the long term? i personally feel that these actively managed funds are useful for investments done for 2-3 or 2-5 years because new types of better mutual funds keep on coming as days pass but to access this portfolio… they charge

A flat fee so, if you intend to invest based on a theme or an idea also, if you don’t have much investing expertise personally… you can try smallcase investing because, as these credit the stocks directly to your demat account… you’ll clearly know the stocks and their holdings unlike mutual funds also, if these companies declare dividends… you’ll get them directly

To your bank account they have built 10 small cases under the name celebrating india at 75, including industries that shape the growth of india in this, we have a smallcase called omni bharat defence under the defense sector… further, as many foreign businesses preferred and came to india instead of china after covid… there are small cases based on this theme/idea

With companies getting benefits from this some of them are; china plus one strategy, wright new india, etc… there are 10 types of small cases based on an idea like this if you want to explore these small cases… we have given the link in the description… you may have a look at them so, to outperform the market, you may try these smallcases after exploring their cagr,

You may use them for medium-term investments so, finally, if we have a look at individual stocks… you may think this is a hard deal because we don’t have a ready-made portfolio to invest in, stocks should we select by ourselves too as shares are directly credited to our demat account in these small cases and stocks… thus, we’ll get dividends and multi-bagger returns

Too if you ask me the meaning of multi-bagger returns… the amount we invested will be multiplied many times such as 200%, 300%, 400%, or even 1000% but at the same time, if we invested only in one company without diversifying our portfolio… if any problem occurs in the business in future… there are more chances for the company to get worse than before like vodafone

Idea, yes bank, suzlon energy though 2-3 companies failed in it and the rest grew and gave the growth you expected… at the same time, if you are a continuous investor of a company for 10-20 years… there are chances for you to get dividends in lakhs multiplied his wealth many times by a single share called titan out of his 40,000-crore portfolio… this company has

A major part so, if you want to be a part of a company’s growth as you use their products, like their business model… as you become an investor of that company from an early stage if the company grew as your expected in the future…. this single company can turn you into a millionaire by being a stockholder in a business like this for a long term… so, if you are a

Beginner in earning… you can simply invest in index funds and etfs only keep increasing your monthly investments as your salary increases after growing your knowledge and expertise slowly… start investing in individual stocks by investing a small amount use all the quadrants except the ”i” quadrant as said in the book rich dad… increase your knowledge on investing

At the same time too the experience you gained by trading and investing, the knowledge you gained from books and finance videos like this… acted favorable to you during a certain time and if you also had some luck… you may become a big investor by investing in a certain company so, i hope that this video answered many questions you had also, i hope that i’ve cleared

Many confusions you had as a beginner if you liked this video… please like, comment, and share it with your friends and family you may also check the small case ”celebrating india @ 75” from the link given in the description below you may also check the other finance friday videos in the channel by clicking here if you want to follow us on instagram and telegram… you

May do so by clicking the link given in the description thank you for watching

Transcribed from video
5 Ways to Invest your First 1 Lakh (Tamil) | Mutual Fund VS Index Fund VS ETF VS Stocks VS Smallcase By Almost Everything