Do Mutual Funds Really Give Compounding Returns?
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- Опубліковано 8 жов 2024
- Do Mutual Funds Really Give Compounding Returns?
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Please make Full details video bank compounding intrest and mutual fund compounding intrest
I still haven't yet got the convincing answer on this concept across the internet..
Still hopeful for that day😊
Me too bro... How compounding works in mutual funds😂.. Who is reinvesting the money.
@@nithinak9980 companies are reinvesting their profits otherwise they will start giving 100% profit as dividend
Agree. That same thought landed me into this video and then on your comment 😄
@@nithinak9980no one is reinvesting your money, you buy stocks and the price of the stock changes at every moment. The base changes moment to moment. And it is decided by demand and supply of the stock
If suppose you invest 1000 and it gives you 20% interest , now your total value is 1200 in year 1
( suppose you get 20% interest every year)
In year 2 you will get 20% on 1200 which will be 1440 and so on
suppose you buy an item today for rs 20 after 5years if you sell that item you might get rs100. That's all stocks and mutual funds, NPS etc. Chances of loss is greater in small time but in long run it can give better profit than fixed deposit.
Yes true MF, shares are Great but not for everyone
Because
In FD Fixed interest starts from day 1 which is very very postive thing. For people who is in need can withdraw after few months with INTEREST.
From grow to Lead 😮 proved that banglore is a city of vast opportunities
There is no compounding in mutual fund
You are reading the content without taking a breath. Good .
Hello mam So how to know which company offers compounding interest?
There's an easy way to calculate. Note down the original investment and the current value in INR of your MF. In the night, see what's the 1 day return %. Now you can add that % to both values you noted and match with the current value.
That means mutual fund also gives compounding return?
Nope, it is just to quantify only.....but technically compounding never happenes in stock market and mutual funds
@@Real_mutual_fund_guide Hindi me bataoge
@@Real_mutual_fund_guide hindi me bataoge?
Mf compounding nahi karta h.....wah sirf kehne ki baat h jese har insan ko identify karne k liye naam rakha jata h wese hi kehne k liye mf k return ko kabhi cagr kabhi xirr etc kehte h......
No
compounding effect and capital appreciation are two different things. What we see in mutual funds is capital appreciation and not compounding effect.
return pe bhi return milna is compounding but equity mutual funds mein capital appreciate hoti hai purely on the basis of what it was yesterday and what it is today purely based on the market sentiments and the amount of profits a company generates. Hence that can't be called as compound return.
It's compounding only, for eg today your investment value is 100 rs ,it's up by 10% today it becomes 110 next day another 10% up, now this 10% up will be reflected on 110,it will become 121 rs like this.
Compounding concept does not work in stocks and mutual fund in similar way as in fds where the returns are guaranteed so u should not confuse fds compounding with mutual fund and stocks.
Please don't spread the illusion... Compound interest is never negative .. neither business nor mutual enjoy this immunity. I fully agree that equity returns are good but please don't spread mis information. It is based on NAV and never compounding.😮😢
Sir please clarify, whether mutual fund benefits are through compounding or not??? If not what's its benefit??? How does our money increasing only through the growth of value of money?
suppose you buy an item today for rs 20 after 5years if you sell that item you might get rs100. That's all stocks and mutual funds, NPS etc. Chances of loss is greater in small time but in long run it can give better profit than fixed deposit.
If there's no compounding in MF then how did you get CAGR returns? "Compounded" annual growth rate.
Thank you🙏🌹
There is compounding but it is not linear ...apps fail... Only give an approximate compounding
Sick market me compounding nahi hota..cagr word me jo compounding word hai wo ek misnomer hai..
Hi Maam..
I want to know how compounding works in stock market for long term investment? Can you explain with an example with some past data.
Does that mean if you invest 1 lacs in 2020 and if that is appreciated by 1.5 lacs in 2021 then you take out 0.5 and invest back to same stock?
the amount invested directly in stocks can be redeemed in terms of number of stocks only and not in terms of money.
For eg- you invested 10 thousand and purchased 10 shares of a company where per share is 1 thousand rs.. Now per share price is 1500. So your investment has become 15 thousand. So now if you want to take out 5 thousand rupees out of it, you will have to sell your shares having total value of 5 thousand rs. So in our example, current price per share is 1500, means you will have to sell 3 shares at least and you will get 4500 rs. Now your investment remains is of 7 shares in that company. So it's not like FD where you can take out the interest and let the principle remain there to continuously earn interest as in shares investment, you will have to sell your shares to take our the return they have generated which will reduce your shares count as well.
I hope that helps. :)
Even I also think same thing. And it's 💯% correct. Mutual fund doesn't give power of compounding. 😂
Is there any compounding? When I am buying stocks individually?? And holding them?
If you don't know the answer to this. You probably should not invest in stocks at this point and yes they compound.
compounding basically means new returns on principle and accumulated return both. So in a way stocks do compound because stocks returns are nothing but a mixture of 2 things. The profits the company has generated and the market sentiments of that company. Company generates more and more profits with the help of the previously generated profits which led to the increased assets of that company. So yes, compounding happens in stocks.
To understand it even more clearly, see that 10 percent of 1 lac is only 10 thousand but 10 percent of 1 crore is 10 lacs. So the more capital you have, the more amount of money you generate. Same is with company. If company has big amount of assets, the company generates more profits which lead to increased capital of the company simultaneously increasing it's assets and those increased assets will help the company generate even more profits now.
That's how the share prices get compounded. Have you ever thought why most of the listed companies (the good companies) grow massively in just few years taking big amount of funding in their IPOs? because now they have more and more assets which help them in earning big amount of profits.
Please tell me best SIP mutual fund for long term 25 to 30 years
Nobody can't answer it.
icice prudential large & midcap
Don't Go With 30 Years, Break Down This In 5/10/20 Years
Bhai lele na direct...😂😂
@@sandipghoshdastidar3406 ryt
बिना split हुए stock मे compounding का कोई मतलब नहीं है... अगर एक stock 1 रूपये का हैं और 10 साल मे 10 रूपये का हुआ तो सिंपल 1 हजार % ही बढ़ेगा... पर यही stock split होता है 2 बार या इससे ज्यादा तो 10 साल मे यही 40 रूपये या ज्यादा भी हो सकता है... मतलब बिना split के stock compounding कोई वैल्यू नहीं...
Does compounding interest apply to every share?
Please give me reply
Lekin ye calculate daily hoti hai monthly
Nice
Compounding happens but not every year , your money gets doubled every 5-6 years
no compounding, mutual fund is based on nav
Bohut confused krti hai yr yeh kch smj ne ata
Still not clear 😕
Etf me compounding dete h kya
No compounding is a myth
She admits there's no compounding in equity mutual funds 😅
Mam simple one language m btaye❤❤❤❤
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Please stop manipulating people by misguiding them with twisted/ smart wrong information.
DI/CC proper nhi kiya hai..
❤👍
Isko lagta hai yeh bahut khoobsoorat hai...
Compounding daily hoti hai ya FIR monthly basis per
😂😂
Ohh gosh what's wrong😮😮
It is a big fraud with people, there is no compounding in Mutual funds. If yes, then explain with example
Toh kya madam deta hai ya nhi deta 😒
जिस दिन मार्केट क्रैश होता है उस दिन म्यूचुअल फंड का कंपाउंडिंग भी वर्क नहीं करता😂😂
bhai kar bhi nahi sakta kyuki agar equity mutual fund hai toh stock market ke sath us mutual fund ka girna bhi tey hai. Equity mutual fund kuch nahi, bas stock market ka hi mirror hai ek tarah se.
Not convincing
Compounding rule kaha invest karne par follow hota hai
fixed deposit in banks etc
@amritbonia330 😂😂😂
The why are these influencers likes Ankit wairakoo etc are telling us about compounding in MFs in long runs?
If mutual funds enjoy the power of compounding, how can a fund give a negative return? you can very easily give it a higher value and call it simple interest.. why the hell do you spread this misinformation..
FD. कहां बेहतर रहेगा
इसके बिषय मे बताए
🙏🙏
Mt karao fd
kisi bhi bade bank mein krwa lo. nas ye dekh lena ki woh bank DICGC insured ho. DICGC ka matlab hota hai ki bank mein aapka 5 lakh rs tak ka amount ka insurance hai. Agar kal ko bank diwaliya bhi ho jaye, toh bhi aapka 5 lakh tak ka amount safe hai aur aapko wapas zaroor mil jaega.
Kya bakwas bakauti kr rhw ho tumlog yaar compounding means jo aap invest krte ho uspr one day jo returns aaya wo next day invested amount mai add jo jayega automatically toh total pr hi rwturns fir se aayega na
Illiterates you tubers keep making videos on this nonsense topic
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