The only reason you should invest in index funds!
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- Опубліковано 4 жов 2024
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I will be speaking on "Debt fund crisis + Investing beyond lockdown" in the Tamilnadu Investors' Association monthly meet.
Time: May 9th Sat (tomorrow) 10: 30 am. You can use this Microsoft Teams link to join.
bit.ly/3bdbetK
Sir, In which language...?
If the title is in English ....
Sir missed the session.. is there another session soon?
hahahahah
Very well said. One invests for well being, and investing itself should not become a cause for worry and tension. Active mutual funds are doing well enough, so what if fees are higher. But Index funds mean fewer decisions to make on active fund managers styles, etc. A kind of laziness is good for investing, provided one has educated oneself properly in the first place and made wise choices initially.
True sir, I started investing in index fund after seeing your videos and am continuing with it.. Best funds don't exist, choose the ones which suits yourself (as Ashal ji says personal finance personalize it) and stick to it until you truly decide to move out..
How do you invest in index fund? Are there index funds in India?
@@sunshinek7601 yes we have Index funds in India. Example: UTI Nifty Index Fund
@@sunshinek7601 yes there are quite few, I am using UTI twins( nifty 50 + nifty next 50) but you can choose others if you want.. For choosing index funds there is a very simple and nice video and post by pattu sir please check that.
@@nitish5924 hi so now, as of today. How much percentage it grows
Index funds also have a low expense ratio. You can invest in index funds every time the market dips. I think it’s best to have at least one index funds in your portfolio. And put money in it every time the market goes down.
Pattu Sir posted a video regarding diff between SIP in all time high market and SIP in market down. Pl. see that.
I back tested this buy the dip strategy and it doesn't work in the long run especially in Nifty 50 index. Most of the dips are higher than the previous rising slopes which you would have bought if done through SIPs. Buying in the dips could work for Mid caps and Small caps though as their falls are more extreme.
When you go for small caps, you need to constantly rebalancing when you get huge profit else profits will gone.
I invest in only index fund
3 reasons
1. I am investing for or long term 20 nd 30 yrs
2. Its difficult to manage many funds
for me especialy if goal is so long
And to keep track of all fund managers of respective funds
3. Whn rebalancing it's easy switching money from debt fund of one amc to index fund of same amc
E.g icici nifty index nd iciici all seasons bond
Started my investing journey with Nippon Tax Saver based on star rating. Got hurt.
Then started investing in ETF tracking nifty 50. Saw the price to NAV difference.
Now investing in Index fund. Waiting to get hurt from a newer way!!!
Nice sir. I like that way of speech. It look like my close relative speaking to me.
True sir based on your videos i have understood the easiness of investing in index funds
The only reason i have my entire equity allocation in nifty is because thats the only fund which can be hedged by writing options against the holding . its simple too just one fund for all equity needs
Should we invest in index fund when p/e ratio is more that means when overvalued?
@@xaviermathews2101 pe ratio is useless when seen in isolation... its a backward looking metrics... just keep investigating every month
@@otium005 thank u
4:37 I dont know why but this part was unintentionally funny, made me chuckle.
Very nice explanation sir 🙏
By the way your special expressions are very enjoyable and dramatic 👍
Thank you again,topic of my interest 🙏
Great video and I really like your confidence with a tinch of humour!
your videos are amazing! Thank you :D I appreciate that sometimes you voice out your biases as well, I think its alright to have biases as long as one acknowledges their presence and can afford the consequences.
Amaze on the whole youtube channel Prof :D
Cannot invest without bias! Thank you
Crystal clear explanation sir if possible please do it in tamil as well about index and passive investing
Thank you!! Something I needed to hear!
May i know what are the funds you have invested sir ? Especially for children education as u mentioned in video?
2:35 - starts with the headline
Sir ji, which is the Best multiasset fund & Aggressive hybrid fund !
The word "invest" is missing in the title sir..
Content.. As usual excellent👌
Thank you so much!
U r great sir......kindly recommend something for govt employees
Sir. What about downside protection factor. Please correct me if I am wrong, you have often mentioned in the past that a good aggressive hybrid or other funds will offer much better downside correction than Index funds. Does it hold true after the current market crash ? Thanks Krish
Plus those who would regularly rebalance. if left on autopilot index funds can end badly too.
Voice very low. Try to improve quality of sound
If I wanted to invest in 2 index funds (Rs. 10 Lac each) and then forget about them for 10 years, which ones should they be? Thank you!
Invest in yes bank
Regarding 2:05 to 2:24 ,
Sir, in my humble opinion, there is nothing wrong in trying to know which index fund one should invest in. For that - AUM, Expense Ratio and Lower Tracking Error are the factors that people usually consider.
It is unlikely that people will throw a dice to pick one index fund out of the lot, knowing nothing about it. What if one ends up picking an index fund with 4 times the expense ratio of UTI Nifty Index fund. In general sense, even with 5 crores of portfolio size, when someone needs to spread their portfolio across multiple funds, one will not choose such fund.
You are right that we should not try to pick index funds using star rating and performance, but AUM, Tracking Error and Expense Ratio - please make a video or explain why we should not do that and what we should do instead ?
Thanks
@Anand Agnihotri Nippon India Index Fund. 4x the expense ratio of UTI nifty index fund.
I won't comment on your 2nd point because mentioning that in 20-30 years in 20-30 years time, these factors don't matter is super dumb.
Pattu, After 0:55 ,there is no sound coming from the video. Is it for eveyone or my laptop speaker gone mad :-)
Seems okay
Could you please tell about advantages do index mutual funds provide over index ETFs?
Sir kindly share ur thoughts about foreign index funds...
How can I optimize my Income tax? Should I investment in my spouse name (non working), kids (minor), sr citizens name?
volume is very low
Volume is slightly low
will correct tomorrow
@@pattufreefincal thanks :)
Sir romba thanks, i keep coming back to this video to remind me. Nalla irrukinga le? Unga podcast pathen, it's very good.
In the end index fund wins for many reasons.
But pattu sir, I want point two of them.
1. Low expense ratio and independent of AMC - passive fund
2. We can do lumpsum when market is down by few percent. Because it doesn't have exit load. So never sip index fund. Buy only lumpsum when market is really down.
But sir I have a question pls clarify.
Since I have Demat account, I started buying Nippon nifty ETF bees.
Because we can capture intrday volatility to buy at low level.
What's your view on index ETF vs index fund?
You can't time the market to increase returns. Don't waste time trying that for long term goals its useless. After 20 years when Nifty is like 50000, do you think it will matter whether you purchased a small unit at Nifty 13000 instead of 13400?
If you want to trade and earn a living then its a different thing.
thanks as always for sensible talks
could you share the link of the meeting on twitter.
I have done it. See comment above also
you answered it at the end.
could you please increase volume...
Sir, this might be a stupid question🙋. Do index funds even have dividends concept? If yes, do they reinvest or pay the dividends? Thank you🙏
Yes. All mutual funds whether growth option or dividend option always reinvest their dividends
@@pattufreefincal thank you Pattu sir ❤🙏
Is this specific to Indian mkts? In the US, index funds perform better over the most active funds over a longer timeline. So you're saying that you are ok giving your fund manager extra commission for the same rate of return as index funds because you fear you might have a tax burden if you switch funds?
sir do you invest/trade directly in stocks?
Loved liked n shared.
So what if there are many decently performing funds in the same category with decent upside capture and good downside capture in one's portfolio?
Many funds are able to best it's underlying index only in a 7 year time period. After 7 years one can do this consolidation business. Imagine putting lot of money in a poorly performing fund and getting struck with it. Quantum Long Term Equity is an example. It is impossible to predict which funds will do well in the future. With tools like zerodha coin managing multiple funds becomes easier. Also I don't agree that just because we Invest in multiple mutual funds we own the market. Most of the fund managers will filter out the bad stocks. Just go and look at the disparity of returns in small cap segment for example. In fact if one wants to invest in small cap stocks I suggest one to invest in multiple funds since the returns are bit of a lottery in that segment.
There is no need to invest in small caps at all. By increasing the weight of N Next 50 you get small cap like risk reward. He has an entire video with backtests.
DEAR SIR - VIDEO VOLUME IS TOO LOW
Volume is low sir
will correct tomorrow
no sound
Hello sir .. can u share ur funds name in ur portfolio ??
Check his financial audit video.
Sir, those who cannot catch live session in team meeting, will u record and upload it later
will try health permitting
A bit underwhelming video.
I started investing this year & have SIPs in 5 funds with 15% overlap. I began investing in N50 (only after 10.5 K level) when the market began falling this year. Until the end of April my actively managed BC fund & N50 fund had equal investment but N50 beat the BC fund. I'll switch to N50+NN50+Parag Parekh LTEF after June this year. I'll monitor only 3 funds. Is this ok?
My idea is ...in 100 rupees.. u try N50( 30rs)..NN 50 (40RS)
REMAINING 20 RS IN PRAGA PARIG...10 RS IN MOTILAL NASDAQ FUND OF FUND..
do not ask people who make underwhelming videos!
@@pattufreefincal You seem take offence so easily. Your videos are good & informative, so I subscribe to your channel.
But if you don't like constructive criticism, my bad, good luck with your future projects.
You should google your question 🤣
Excellent 👌. I had this doubt from long time. But when do stocks move in and out of nifty 50. Based on market value? Say now active fund managers add pharma to portfolio which is an advantage that we may miss in passive fund. There is so much unknown. Can you please make video on how passive or active funds work?
Dear sir...can i invest in icici nifty low volatility 30 ETF instead of nifty 50 index fund. As return is reasonably high and also there is no fund manager risk.
Unfortunately, very poor liquidity with this ETF
The point is "i don't care".
Should be a line on a t-shirt 😅
In your last video u said u got only 2.75 % return in last 12 years and now ur saying we should invest in INDEX FUND how these two sentences are contradicting....
That is what I also want to know! " how these two sentences are contradicting." Clearly you have not understood both videos
"I want to invest 5000 in 5 funds"...LOL!!!
(y)