As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
I will suggest You , If You Are Risk Taker Than Invest Your Money Account To Allocation Wise. Like High risk Than 40% In Equities , 20% In Commodity Like Gold And Silver Or Crude , 20% Real Estate , 20% Debt Fund Or F.D. Secondly If You Want Low Risk and Moderatr Returns Than , 25% Equity , 15% RealEstate , 40% Debt Fund Or F.D , 20% In Commodities Like Gold , Silver , Or Crude Oil. In Equities Need To Select Only Large Cap Stocks At Prices Down At 35%- 45% From Last High
He is talking about the stock based SIP or compounding which might be very risky as it's difficult to predict specific stock or theme based mutual fund.Yes it's true that people are expecting too much returns but at least 12% returns for longer horizon can be expected from the disciplined SIP.
why? 12% is from older data. Do you think the India from 1990-2000, 2000-2010, 2010-2020 were the same? And the coming India with brutal inequality of income, slow spending by general masses and punitive taxes allow for 12% each year as CAGR?
Yes. You can think your money has compounded and it will be all swept away by some black swan event like covid, or market crashing due to high valuation corrections or due to some scam unbeknownst to SEBI. That's why have Goal based investing... and when you're closer to your goal shift the corpus from Stocks to Fixed Instruments (FD,RD, Savings, Govt/AAA Bonds) to protect your principal and the interest
Compounding always will FAIL in stocks . It only works when Company invest at 1 year and waits for 5 years for good returns . Meanwhile the company MD makes roadmap for success . Retails investors invest and wait for good returns How will it work ?
When the market is up videos that show insane growth and compounding are made, with commentators urging people to put their hard earned money in speculative assets. When the market is down, videos like this are plenty available. Makes me distrust any financial advisors/commentators.
I disagree .. only stock exchange will give you very good returns... Of course you will hv to go through sleepless nights... No pain no gain.... Invest in mutual funds some surplus funds... Remain invested for next 20 years and see it grow... Property will give returns ... But cumbersome... Maitain, lease out....
What's the most effective strategy during this period of volatility with the rate cut? Most of my portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) I want to explore different strategies to benefit from a potential bubble.
Adding META and NVDA are smart additions in my opinion. it's all about balancing your risk tolerance with your long-term goals. Partnering with a financial advisor can help streamline your strategy.
Absolutely! Wealth is made in bear markets. We aren’t in a bear market, but nibbling heavy red days has proven to be fruitful for me over 9 years of investing. I am at $2.25 mil. Biggest positions PLTR, TSLA, SCHD, NVDA, and now looking to build up DRGO alongside finding quality value/growth stocks to buy like TORM. I got $48k divs last year in taxable divs. Q2 taxable divs this year was $17,388 this year. Don't sell when the market is down. Having a skilled Financial counsellor that puts the time in to do in-depth research can be valuable in strategizing your portfolio.
Oh I've heard similar things about hiring an advisor. It's hard to choose one that's very good though. Could you make some useful recommendations? Enthused about investing for my eventual retirement.
@@KnottEdwin The advisor I’m currently working with is Eva Diane Herald , came across her in a Bloomberg interview, we've worked for about five years now, and her performance has been consistently impressive, She’s quite known in her field, look her up.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
Thank you for providing a clear and realistic explanation of the market. In a world full of overhyped promises and misleading information, your approach is refreshing and greatly appreciated. 🙏 Your honest insights and straightforward guidance are truly valuable. 💡 Keep up the great work in educating and empowering us with the truth!❤
I thought karthik would finally answer this question. But if a stock at T1 Trade at 100 and T2 at 500 but at T3 it again trades at 100. Then where is compounding. Only thing which compounds is dividend money which you receive and eventually that increases the base value or NAV in mutual funds.
while explaining a concept you are suppose to take real time scenario, bank interest is 6.5 % , and when you take that figure , your whole video goes for a toss .
Nice! You could have also showed the worst picture which is an example of a stock that not only didn't climb rather went bankrupt. That would have put the actual risk into the picture.
I always knew this and never buy into flimsy compelling stories about compounding in stock markets as sold by many of RUclipsrs..Thanks for ascertaining this..
He didn't just show the difference between FD and stock market, he also claimed that the FD return in 10years time horizon is 20% CAGR, which is impossible when the interest rates are between 6-8%. Watch at 2:29 Waren Buffet poor fellow didn't know that he can generate 20% CAGR in FDs. He invested in stock market to generate 21% CAGR throughout his life 😂 It's surprising that such a foolish analogy came from Zerodha!!
I thought karthik would finally answer this question. But if a stock at T1 Trade at 100 and T2 at 500 but at T3 it again trades at 100. Then where is compounding. Only thing which compounds is dividend money which you receive and eventually that increases the base value or NAV in mutual funds.
He didn't just show the difference between FD and stock market, he also claimed that the FD return in 10years time horizon is 20% CAGR, which is almost impossible when the interest rates are between 6-8%. @2:29 Waren Buffet poor fellow didn't know that he can generate 20% CAGR in FDs. He invested in stock market to generate 21% CAGR throughout his life 😂 It's surprising that such a foolish analogy came from Zerodha!!
Exactly.We should now thing about the projections shown for mutual funds etc..where they advertise that so and so investment should have generated so and so amount.
At the end of the day, what truly matters is how many years one has left in life, especially when it comes to investing. For example, a 25-year-old investor has approximately 35 years before considering withdrawing from the market. This gives them plenty of time to wait for the market to rebound during bear market trends. 🐻 On the other hand, a 57-year-old individual may only have about 3 years of patience to wait for the market to recover, as their retirement age is approaching. 💀
There is no guarantee in stock market. 12% is gimmick by mutual fund sales people and finfluencers. Indian stock market return in last 1 year (17 Jan 2024 to 17 Jan 2025 is 8 %). All he is telling in this video is journey in stock market is not smooth like FD
You have chosen such a bogus example of 20% FD interest that the essence of comparison with stock market return is lost. Pls do chose realistic case study to explain the topic. Sorry to be critical…
Most of the videos on youtube, gives false hope of compounding. It can work wonders but there are times where the stock stays low for a decade and bull runs in 2 years bringing the cagr at 15%. thus giving false hope of compounding returns, as the first decade your returns were less than 0. And again you can't time the market Basically what he wants to say is that don't be greedy with the high compounding effect in the market as one needs to take the market conditions into consideration
I believe CAGR, return is how we can compare less risky asset like FD vs market linked asset like stock or mutual funds. Compounding can't be tagged to equity or real estate but CAGR ( compounded annual growth rate ) can for lumpsump investment
I felt this video was waste of the my time because it is not telling any new I know about of the stock votality. But at the same time it is telling how much people are not aware about financial education. At the same time but at the same time platform like varsity putting such kind of videos
@ “”Assume” your car can travel at 6000 kmph. Then you can reach Mumbai to Delhi in 30 minutes.” - kinda a ludicrous assumption there ain’t it? To someone who doesn’t know this stuff, it would sound like an FD was able to beat the returns of M&M over a 5-year period, or that an FD will double your money in 5 years, which is ridiculous. Why assume when the rates are known? Mention that it is 6-7% and won’t even beat inflation. Else some people might get misguided seeing that curve.
How can you claim that FD returns will provide a 20% CAGR? People don’t have such options, which is why they invest in stocks despite their volatility. For stocks, you've provided exact details, but for FD, you're making an assumption. Be practical, or else this becomes misleading. Also, people who are researching fundamentally strong stocks for the long term might lose hope if they watch this video.
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Mind blowing video..This s the reality..junior nifty hit all time high and then fell 22% 🤦
As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direct I should take to help me generate substantial profits like some people are this season.
I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
I will suggest You , If You Are Risk Taker Than Invest Your Money Account To Allocation Wise. Like High risk Than 40% In Equities , 20% In Commodity Like Gold And Silver Or Crude , 20% Real Estate , 20% Debt Fund Or F.D.
Secondly If You Want Low Risk and Moderatr Returns Than , 25% Equity , 15% RealEstate , 40% Debt Fund Or F.D , 20% In Commodities Like Gold , Silver , Or Crude Oil.
In Equities Need To Select Only Large Cap Stocks At Prices Down At 35%- 45% From Last High
Nothing is guaranteed but we must be optimisic when we have invested in market.
100% agree.
He is talking about the stock based SIP or compounding which might be very risky as it's difficult to predict specific stock or theme based mutual fund.Yes it's true that people are expecting too much returns but at least 12% returns for longer horizon can be expected from the disciplined SIP.
Talking about how compounding works, regardless of SIP or lumpsum.
why? 12% is from older data. Do you think the India from 1990-2000, 2000-2010, 2010-2020 were the same? And the coming India with brutal inequality of income, slow spending by general masses and punitive taxes allow for 12% each year as CAGR?
15% can be expected in sip
@@saumitit944Bhai If markets fail to generate 12% then atleast inflation will cool down to 2-3% just like in the US
My father invested in ICICI Bank during early 1990's, the compounding was unimaginable
This is exactly what is sequence of returns risk! There is no compounding in Equity.
Bro compounding start working good after +100% return I didn't think you hold after making 100% that's why you don't know.
Yes. You can think your money has compounded and it will be all swept away by some black swan event like covid, or market crashing due to high valuation corrections or due to some scam unbeknownst to SEBI.
That's why have Goal based investing... and when you're closer to your goal shift the corpus from Stocks to Fixed Instruments (FD,RD, Savings, Govt/AAA Bonds) to protect your principal and the interest
it will work in sip if it is for long term
Compounding always will FAIL in stocks .
It only works when Company invest at 1 year and waits for 5 years for good returns . Meanwhile the company MD makes roadmap for success . Retails investors invest and wait for good returns
How will it work ?
When the market is up videos that show insane growth and compounding are made, with commentators urging people to put their hard earned money in speculative assets. When the market is down, videos like this are plenty available. Makes me distrust any financial advisors/commentators.
Never trust on influencers use your brain these fellow are pure biased
Lol
True.
I disagree .. only stock exchange will give you very good returns... Of course you will hv to go through sleepless nights... No pain no gain.... Invest in mutual funds some surplus funds... Remain invested for next 20 years and see it grow... Property will give returns ... But cumbersome... Maitain, lease out....
What's the most effective strategy during this period of volatility with the rate cut? Most of my portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) I want to explore different strategies to benefit from a potential bubble.
Adding META and NVDA are smart additions in my opinion. it's all about balancing your risk tolerance with your long-term goals. Partnering with a financial advisor can help streamline your strategy.
Absolutely! Wealth is made in bear markets. We aren’t in a bear market, but nibbling heavy red days has proven to be fruitful for me over 9 years of investing. I am at $2.25 mil. Biggest positions PLTR, TSLA, SCHD, NVDA, and now looking to build up DRGO alongside finding quality value/growth stocks to buy like TORM. I got $48k divs last year in taxable divs. Q2 taxable divs this year was $17,388 this year. Don't sell when the market is down. Having a skilled Financial counsellor that puts the time in to do in-depth research can be valuable in strategizing your portfolio.
Oh I've heard similar things about hiring an advisor. It's hard to choose one that's very good though. Could you make some useful recommendations?
Enthused about investing for my eventual retirement.
@@KnottEdwin The advisor I’m currently working with is Eva Diane Herald , came across her in a Bloomberg interview, we've worked for about five years now, and her performance has been consistently impressive, She’s quite known in her field, look her up.
Thank you so much for the suggestion! I really needed it. I looked her up on Google and explored her website; she has an impressive background in investments. I've sent her an email, and I hope to hear back from her soon!
Thank you for providing a clear and realistic explanation of the market. In a world full of overhyped promises and misleading information, your approach is refreshing and greatly appreciated. 🙏 Your honest insights and straightforward guidance are truly valuable. 💡 Keep up the great work in educating and empowering us with the truth!❤
I thought karthik would finally answer this question.
But if a stock at T1 Trade at 100 and T2 at 500 but at T3 it again trades at 100.
Then where is compounding.
Only thing which compounds is dividend money which you receive and eventually that increases the base value or NAV in mutual funds.
Thanks for the kind words :)
while explaining a concept you are suppose to take real time scenario, bank interest is 6.5 % , and when you take that figure , your whole video goes for a toss .
Nice! You could have also showed the worst picture which is an example of a stock that not only didn't climb rather went bankrupt. That would have put the actual risk into the picture.
This example makes the FD chart look good by making the cage rate @ 20%. Point is, no instrument gives you 20% linear returns.
No actual compounding in equity , simple , find ways to increase your income
Super comparison
I always knew this and never buy into flimsy compelling stories about compounding in stock markets as sold by many of RUclipsrs..Thanks for ascertaining this..
Be greedy when others are feaful, be fearful when others are greedy. Now is a good time to invest long term in good companies.
what was the motive of FD return assuming to be 20% when we know the more accurate value from historical data, this is misleading for new comers.
He was comparing the M&M stock with 18 % cagr to FD. So he wanted to show diffence between same cagr but difference in consistency
He didn't just show the difference between FD and stock market, he also claimed that the FD return in 10years time horizon is 20% CAGR, which is impossible when the interest rates are between 6-8%. Watch at 2:29
Waren Buffet poor fellow didn't know that he can generate 20% CAGR in FDs. He invested in stock market to generate 21% CAGR throughout his life 😂
It's surprising that such a foolish analogy came from Zerodha!!
@@swechha_rajasam
Check 1:13
I think compounding never works in stock market, there is only value appreciation
Point
I thought karthik would finally answer this question.
But if a stock at T1 Trade at 100 and T2 at 500 but at T3 it again trades at 100.
Then where is compounding.
Only thing which compounds is dividend money which you receive and eventually that increases the base value or NAV in mutual funds.
Looks like u never understood or a newbie
@@akash4517 If you take regular returns, it will be a +ve return, but in reality its 0% return. That is why ppl use log to calculate returns.
There is compounding, but the experience is different :)
Well said Sir!
Very helpful content ❤❤
He didn't just show the difference between FD and stock market, he also claimed that the FD return in 10years time horizon is 20% CAGR, which is almost impossible when the interest rates are between 6-8%. @2:29
Waren Buffet poor fellow didn't know that he can generate 20% CAGR in FDs. He invested in stock market to generate 21% CAGR throughout his life 😂
It's surprising that such a foolish analogy came from Zerodha!!
Exactly!!!!!
It was just an example to explain compound interest. He didn't claim that FD s give 20% return
Silk board traffic is solved ❤❤❤❤❤
Correct, Sir. I'm glad that finally someone spoke truth.
Exactly.We should now thing about the projections shown for mutual funds etc..where they advertise that so and so investment should have generated so and so amount.
At the end of the day, what truly matters is how many years one has left in life, especially when it comes to investing. For example, a 25-year-old investor has approximately 35 years before considering withdrawing from the market. This gives them plenty of time to wait for the market to rebound during bear market trends. 🐻
On the other hand, a 57-year-old individual may only have about 3 years of patience to wait for the market to recover, as their retirement age is approaching. 💀
Time is indeed the biggest luxury market offers :)
Wow … such an informative video… 😊
What a stupid example to take to mislead people! No bank can ever ever give 20% interest on FDs. If that were the case, no one would invest in equiy
Are you ret@rded?
This is just an example.
We bought tcs shares in 2004 at ipo stocks now it has grown 448 in last 20 years
If I invest in Nifty 50 index for 10 year period with average CAGR of 12 % then compounding will work right?
Forget 12% cagr. Nifty can give zero% cagr for a 10 year period also. Happened from 1993-2002.
Compounding works, but what I'm trying to explain is the nature in which it works :)
There is no guarantee in stock market. 12% is gimmick by mutual fund sales people and finfluencers. Indian stock market return in last 1 year (17 Jan 2024 to 17 Jan 2025 is 8 %). All he is telling in this video is journey in stock market is not smooth like FD
what if i take a exit on bull and reenter only in bear wont that help to earn req CAGR?
Zerodha Bank Can Give 20% Return🔥🔥
1:12
Love to learn Z.V.❤
When was FD rate 20% ever?
CAGR I think
Some utopian dystopian la la land interest rates he assumed 😂
He said, "it's an exaggeration" @ 1:15 Bro. Are you even listening?
Very comfortably he took 20 % FD return and concludes "while end return is same but journey differs". What stupidity.
Nah, I believe you missed the point dear friend. This topic is about explaining compounding and its effects, not real or unreal figures.
Insightful.
Thankyou for the video Sir. Can you please create a video on SLBM in zerodha
You have chosen such a bogus example of 20% FD interest that the essence of comparison with stock market return is lost. Pls do chose realistic case study to explain the topic. Sorry to be critical…
Good info..
Nicest video on internet
Bhaiyya hedging pe bhi ek video bana lo
Whats the point ?? No one will make money.Invest in fd .
Most of the videos on youtube, gives false hope of compounding.
It can work wonders but there are times where the stock stays low for a decade and bull runs in 2 years bringing the cagr at 15%. thus giving false hope of compounding returns, as the first decade your returns were less than 0. And again you can't time the market
Basically what he wants to say is that don't be greedy with the high compounding effect in the market as one needs to take the market conditions into consideration
I believe CAGR, return is how we can compare less risky asset like FD vs market linked asset like stock or mutual funds. Compounding can't be tagged to equity or real estate but CAGR ( compounded annual growth rate ) can for lumpsump investment
SIP for long term will work like fd
Sir please make the same videos in kannada as well simultaneously please
Sir please explain the difference between contra fund and value fund pleaseeeeeeeeeeeeeeeeeee
I felt this video was waste of the my time because it is not telling any new I know about of the stock votality. But at the same time it is telling how much people are not aware about financial education. At the same time but at the same time platform like varsity putting such kind of videos
Good video keep going on
Nice video
Which FD gives 20%?
He already said bro "assume" is the keyword here...
@ “”Assume” your car can travel at 6000 kmph. Then you can reach Mumbai to Delhi in 30 minutes.” - kinda a ludicrous assumption there ain’t it? To someone who doesn’t know this stuff, it would sound like an FD was able to beat the returns of M&M over a 5-year period, or that an FD will double your money in 5 years, which is ridiculous. Why assume when the rates are known? Mention that it is 6-7% and won’t even beat inflation. Else some people might get misguided seeing that curve.
Actually you can replace 20% with 8% too. It still does not change the crux of the video.
@@karthikrangappa6417Well said Karthik avre
He was comparing 18% cagr of MM stock with consistent CAGR. So he assumed 20% vs 18% Just to keep it easy
🎉
nice
👌👌👌
Bitter reality
👍🏻
Can you make the videos in Kannada. It’s easy to understand
That's why SIPs are best for me 😅
For me too :)
Concept explained in video applies to sips too. Stock market returns are not linear like FD returns
How can you claim that FD returns will provide a 20% CAGR? People don’t have such options, which is why they invest in stocks despite their volatility. For stocks, you've provided exact details, but for FD, you're making an assumption. Be practical, or else this becomes misleading. Also, people who are researching fundamentally strong stocks for the long term might lose hope if they watch this video.
He made an assumption, for an example, for illustration purposes. Go back to 1:10
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I'm 37 and have been looking for ways to be successful, please how??
Sure, the investment-advisor that guides me is..
Mrs Joyce kim
Same i met Joyce kim last year for the first time at a conference in Wilshire after then my Life has changed for good.God bless Joyce kim
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