Well, in this blog, I am going to give you a strategy for which you only need a minute of the day. But if you are ready to give a minute of your day, then you can make money from the stock market continuously. You may be new and you are very surprised and it may be that if you have a little experience, then you will like my talk today and you will understand that you can also make money by adopting this simple strategy.
Now you must have read that we are going to talk about ETF investing today and this strategy is on ETF investing, but I will tell you one thing first and give you a warning that you are going to learn this strategy. This is a very good strategy. This will also make money, but itis only for ETF investing. You do not have to use it for stock investing. If you use the same strategy for stock investing, then it will be the opposite.
Now you have understood stock investing in this series. You have also learned fundamental analysis. After that we talked about mutual funds. So you also understood mutual funds. Here EGFI’s written. What is ETF? ETF means Exchange Traded Funds. These are also funds. Mutual funds are also funds. What is the difference? When you buy mutual fund, you buy it frogman asset management company.
But ETFs are traded on exchange. Exchange traded means like you know the exchange in India. There is NSE, BSE. Sachets are traded on exchange. When they are traded on exchange and there is another difference in mutual funds. When you buy a mutual fund, you know there is NAV. NAV will go upend we will get the benefit, but the whole day’s NAV remains the same. But your ETFs fluctuate like stocks.
So if you are investing in ETF, then you will buy it from the exchange and sell it on the exchange and here you will see the price going up and down. So it is just like stock investing, but it is more like a mutual fund. Now what did I say? It means that it is like stock investing. Like you buy stocks in your Demit account, it is exactly the same, but it acts like a mutual fund.
Now I will explain to you what it means. When you buy an ETF, itis a fund, not a stock. Now what can an ETF be? When you searching your Demit account, you will see a lot of ETFs. You do not know where to invest. I am going to guide you in this blog that which ETFs you can consider and it is also necessary to tell for strategy, but for example, let’s take an example.
A very popular ETF is Nifty Bees. Now here we have added Bees, what does it mean? Nothing, Bees means Benchmark Exchange Traded Scheme. So people have just confused it. I will break one thing and explain to you that you understand everything. So benchmark, here we have taken a benchmark. So Nifty is a benchmark for us.
You all know that Nifty and Sensex are indexes. Nifty is made from the top 50 companies ones; Sensex is made from the top 30 companies of BSE. So what is the meaning of investment in Nifty? Investing in India’s top 50 companies. Investing in Sensex means investing in India ‘stop 30 companies, but can you buy Nifty? Can you buy Sensex?
The answer is no; you can’t buy Nifty. You will have to buy Nifty and Sensex Mutual Fund, which we also call Index Fund. I told you and you can buy both of these ETFs. So for example, Nifty’s EGFI’s very popular. Nifty Bees and you can buy Sensex ETF. Now when you search, it comes in your demand account. Now when you are investing in Nifty Bees, when will you benefit? Simple when Nifty goes up because ETF will follow its underlying. Setoff here was of Nifty, ETF can also be of gold. ETF can also be of your S&P 500.
Now what is this S&P 500? Like India’s, we are talking about the top 50 companies. If we talk about the top 500 companies of the US, then what will we call its index? S&P 500. Now someone says I want to invest ins 500. So what is the way? Either you will do it through mutual funds or you will do it through ETF.
So now to invest in ETF, first I will tell youth advantages. The advantages of investing in ETF is that you get the benefit of diversification. You are investing in stock, you feel that it is a very good stock, but even after that it is not growing. Butane thing is clear that the stock can be zero. ETF cannot be zero.
Why can’t ETF be zero? Because it is made up of many stocks. For example, if you investing S&P 500 or you investing Nifty Bees, then you invest in 50 companies, 500 companies, then one company can fail, two companies can fail, not all companies can fail. So that’s why in ETF, you will never hear that we invested money in ETF and we are ruined.
This does not happen. Why does it not happen? Because you have taken advantage of diversification. It can be in the stock. If you invest in a penny stock, your money is lost because the stock is lost. So one stock can be lost, but ETF will not be lost.
The first thing is that the strategy that I am going to tell you today, its point is the first baseline that you can be wronging a stock, you cannot be wrong in ETF and if you choose thief index, then there Isa very low probability of being wrong in ETF.
So you will not be zero. You will get diversification benefit. The second thing is that only professional managers manage ETF. So there are companies that issue ETF. So the first time a company issues, then it is trading on the exchange.
So here too you get professional management. Money is diversifying, you are getting professional management and if we had understood mutual funds, we had talked about it, there are fees that companies earn. The lowest cost is when you invest in ETF.
So you are investing insets at the lowest cost, very low, equal to zero and you are also getting diversification. So investing in ETF is one thing, but what is its strategy? Before the strategy, I would like to tell you here that we are talking about S&P 500. So you can invest internationally while sitting in India.
You can increase your horizon; you can take the benefit of diversification. For example, you can go to IND money, you must have heard that you can invest in US stocks, but above stocks, when I told you that you can investing ETF, then if you want to invest in US ETFs, then you go to IND money and go to IN money and open your account for free.
There is no account opening fees, you do not have to pay any charges there. So you opened an account on IND money, after that you can investing US stocks. You can invest in stocks and you can invest in US ETFs. What is the benefit? Fractional investing is not in India; it is in the US. People of stocks know that we can do fractional investing in US stocks.
Plus, you can do fractional investing in US ETFs. So if you see that there is an ETF of $380, so I do not have $380, so I say you have 100 rupees, you will say that yes, 100 rupees, 200 rupees, 500 rupees, so you can invest 500 rupees.
Thesis a benefit when you are investing in US stocks and ETFs. The second thing, why amid recommending the US more, see, our Indian currency is depreciating lot. Dollar, you see, in the last few times, it has gone from 75 to 83.
So the difference of 8 rupees here, if you understand that your investment is of 1 lakh rupees, then your stock’s ETF appreciations different at 1 lakh rupees, but the dollar is increasing, you get less benefit when your investing can be in S&P 500 ETF and Nasdaq.
So that is on you, but there is an example that if you are investing in Indian stocks, then you get the benefit of dollar appreciation. The third thing is again portfolio diversification, that if there is investment in Indian stocks, then a little bit of yours can be abroad. So if you are investing in the top 500 companies of the US, then you are getting the benefit of diversification.
Now here I give you are ward, first we talk about the giveaway, then we will go tithe strategy. Giveaway for all of you is that you can get a free share of Tesla company for 1000 rupees. How-to get it? You are opening an account on Indie money for free.
When you open your US stock account there and add funds for the first time, then you will get a share of Tesla up to 1000rupees from Indie money. So it is as simple as that. You have to download the Indie money app, open your US stock account and go there and fund. Your funding will be successful. You will get Tesla shares up to 1000 rupees. The reward you get; I have to tag on Instagram. I want to see how many people are getting the benefit.
Now let’s move forward. Now we have understood this. Now here comes the strategy because we are waiting for the strategy. So for the strategy, I told you that you have to give only one minute of the day. Now what will happen in a minute, how does this strategy work?
See, the first thing I tell you is that you are talking about investing. You should invest 10%of your income every month and this 10% is at the initial level.
I don’t know how much money you are thinking to invest, but ideally When you move a little ahead in life, your expenses should not increase much, your investing should increase more. I am telling you genuinely that I spend a fractional amount of my income on myself. In fact, I spend it on my family. Most of my money is invested every month. If I tell you the percentage, you will move, but I am telling you anyway.
The percentage is too much of investing, so even if I have to spend, it is fractional for me. The sooner you learn this thing, the more fun it will be, the sooner you will become wealthy. So what does the strategy say? I don’t know what is your amount. You may earn10,000 a month, earn 50,000, earn 1 lakh, earn 10 lakhs, earn 1 crore, but whatever you are earning, 10% you think you have to invest.
Now for example, I said you have to invest10% and you said that Yearn 50,000 every month. My 10% is 5000 rupees. I will say well and good, there is no problem. You said 5000 rupees. Now the first thing is that the markets closed for 2 days a week. It is closed on Saturday and Sunday. Now you have time from Monday to Friday for investing.
What do you have to do? You just have to see one thing every day. It will take a minute to see it. Today the index is up or down. You can see it on your Demit account or on Google. So you just have to put it once a day. Nifty was up today. S&P 500 was up or down. Depending on which ETF you want to invest in. If you want to invest in India, I gave you an example of Nifty Bees.
If you want to invest according to the US, I gave yuan example of S&P 500. Now I will tell you the ETF. Now what did you see in the market today in a minute? You saw that the market is down today. Today the market is down. Good, you saw a red candle and I am talking about the daily basis. Why? Because when we are talking about the US, you can do fractional investing. What does it mean? I have 5000rupees.
Someone will say that I have 2000 rupees. I will say everything is okay. How many days is the market open? You will say 20 days are open. If the market is open for you for 20 days, then how much money can you invest in a day? You will say that according to this, we can invest 250 rupees a day. I will say well and good. You invest 250 rupees, when do you want to invest 250 rupees? The day the market is down.
You saw that today Nifty has fallen by 1%, today S&P 500 has fallen by 1%, you have invested 250 rupees. Yesterday you thought that the market is half percent, 1% has increased. You are not investing. The day you see the market down, you think that the market has gone down by 1.5%. Very good, you have invested. Now you have invested 250 rupees. You will say no. Why? Because had invested 250 rupees on day 1.
On day 2, the market was green, so I did not invest. Because on day 3, we went and the market broke, so I have 250and 250. How much is it? It is500 rupees. I have invested 500 rupees. Now the market remained green for 4 days. Show you day 4, 5, 6, 7, the market is green. You are not investing. Show you that the market has broken. You have invested again. What is happening with you? Understand this concept here.
The day I see the market negative, broken, I am putting money that day and the day the market rallies, I am not putting money. When it breaks, my investments done. When it increases, my investment is not there. Then it will break, my investment is done. Theni increases, my investment is not there.
What do we all know? Let’s take a universal thing that we know that one company can fail. 50 companies, 500companies can fail. Overall, India’s top 50 companies and the top 500 companies of the US, because if no company performs within 6 months, it will come out of Nifty. You know that there will be only top 50 in Nifty. So the top 50 companies have to grow. This is what we know.
So when you’re investing in ETF, what is the chance of your failure? Almost zero and when are you investing? The day the market is broken. The day it is broken, you say that I have Rest 50,000to invest every month. Very good. You can invest Rest 2500 a day. Now if you can investors 2500 a day, the day the market broke, you put Rest 2500.
The market was green for 10 days. There is no problem. The day it comes red, your Rest 25,000 will be collected. You have invested Rest 25,000 on that day. Boom, because when the market will rise again, you will see Rest 25,000 in the account.
And now we are not talking about selling because mutual fund investing, stock investing, ETF investing, we do it for years. My brother, returns are going to be dangerous. This strategy will earn your money continuously and ETF, you see Nifty is also 190 rupees. There is nothing. You will get Sensex’s ETF at around 600 rupees.
So here you have to understand that we are continuously investing and if you are investing in US stocks, then I will put as much as my amount is coming. If it is being made according to 250, then it is fractional investing. Your money should look growing. This is important. How did you like the strategy? Tell us by commenting. It is simple strategy.
In this course, we have understood investing very well. Stock investing, Fundamental analysis, Mutual fund investing, SIP compounding and ETFs. You have understood so far and I tell you that thesis enough for investing. If you keep going ahead like this, then you will go ahead a lot and my best wishes are with you.