How to understand mutual fund returns if there is no compounding?!

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  • Опубликовано: 17 ноя 2024

Комментарии • 51

  • @pattufreefincal
    @pattufreefincal  6 лет назад +1

    Watch this to understand what is cagr, what is XIRR and how they are different
    ruclips.net/video/xRr5yAJyAYs/видео.html

    • @greatuniverse5197
      @greatuniverse5197 6 лет назад

      freefincal - Prudent DIY Investing yes you are true sir.. I have experienced negative returns means capital was decreased.. I didnt even get returns similar to bank fixed deposits of 7 percent

    • @muruganathansriranganathab6814
      @muruganathansriranganathab6814 4 года назад

      @@greatuniverse5197 66

  • @hidamcha10
    @hidamcha10 6 лет назад +20

    Other channels are explaining compounding power by giving examples but donot explain the actual meaning of compounding and how it differs from compounding in fixed deposit. I was looking for the answer and I got the genuine answer!! Thanks Pattu Sir...

  • @mukulkukreti
    @mukulkukreti 3 года назад +1

    This is one of the best channels about personal finance and investing on RUclips. I also like Ben Felix as he too explains things with lots of data to back up the theories and claims.

  • @HSPriyaRaut
    @HSPriyaRaut 2 года назад

    Other channels put thumbnails showing how you can grow money to 1cr and all. They talk about compounding and they have lots of views and subscriptions. Thanks Man👍 You are showing the reality.

  • @tejasdoshim
    @tejasdoshim 6 лет назад +11

    OMG
    5 years with no returns
    I can understand now that journey is more important than anything else.
    if u can have a peaceful sleep during journey that is the most important thing.
    If u invest (enough) with relative downside protection u will ultimately reach your destination

    • @pattufreefincal
      @pattufreefincal  6 лет назад +6

      Thanks for understanding the main idea

    • @balaji6583
      @balaji6583 Год назад +2

      @@pattufreefincalsir - for these 5 years where there were no returns , were you continuously pumping in more money or just sitting idle with invested amount ? Please clarify very important

  • @malanmalan01
    @malanmalan01 2 года назад +1

    A very clear video every mutual fund investor should watch regardless of their years of investing and all more important to novice investors..Thank you so much pattu sir🙏🏿🙏🏿🙏🏿

  • @harshthanvi
    @harshthanvi 4 года назад

    Iam now more affirmed on index funds... Thanks Jack, you changed many lives with your simplicity thinking. Thanks Pattu Sir for explaining soo well

  • @maheshvisakhapatnam2943
    @maheshvisakhapatnam2943 4 года назад +2

    At last I got the answer. Thank you sir for unknown and hided knowledge sharing.

  • @nareshnarasimhan9774
    @nareshnarasimhan9774 4 года назад

    Typical Pattu video delivered with facts and data ! . I think this should be part of freefincal must view playlists !

  • @kgsrikanth22
    @kgsrikanth22 7 месяцев назад

    Thanks for the amazing video sir. But without any return expectations, how can one decide to invest their entire retirement funds? Is optimism in the long term market the only hope that one needs to have?

  • @pramodsnarayan
    @pramodsnarayan 5 лет назад +2

    @Pattu, Sir you have said in the video that for the first 5 years you didn't have any positive returns, I have question about this, did you try to meddle with your portfolio in these initial 5 years or were you just invested in the same equity funds for the 5 years and waited?

  • @anubhavprakash8150
    @anubhavprakash8150 Год назад

    Which measure is better? CAGR or XIRR? Can their ever be a divergence between them?

  • @karthickc1988
    @karthickc1988 3 года назад +1

    Nice explanation 👍

  • @Tausifsiddiqui
    @Tausifsiddiqui 3 года назад +1

    All other channels are fooling around! And they don’t even know! Man give this guy some security because too many people are about to get offended by getting their “power if compounding” fantasies shattered.

  • @ajinkyakasare7778
    @ajinkyakasare7778 5 месяцев назад

    So sir, is CAGR also irrelevant to check the growth of individual stock?

  • @samipmalkan7039
    @samipmalkan7039 5 лет назад

    Hello sir, good explanation about compounding. How can earn compound interest???

  • @balu5702
    @balu5702 4 года назад

    We are doing lot of exercise for getting better returns sir. If returns do not matter, why we are thinking about all these things? I think it's better to move to risk less investments like Recurring deposits.

    • @pran10000
      @pran10000 4 года назад +1

      His point is that if you are able to meet all your goals by investing in RDs then its totally fine... dont chase returns chase goals

  • @jainayak666
    @jainayak666 4 года назад

    This was a much needed video.

  • @amitarora5983
    @amitarora5983 6 лет назад

    Removed lot of doubts, - Pattu Sir :- thnks

  • @HellsAngel007
    @HellsAngel007 Год назад

    Hi Pattu sir, why everyone says ppf or vpf is bad for investment. Cant we consider these 2 as an alternative of debt funds to manage equity risk?

    • @ganigarabasavaraj4436
      @ganigarabasavaraj4436 Год назад

      I don't think its a bad investment, its risk free and less returns
      debt funds has the ability cross ppf/pf CAGR , may be that is the reason why ppl are saying that

  • @sayakgupta212
    @sayakgupta212 6 лет назад

    How do you perform audit? Do you keep track of rise and fall of your equity portfolio everyday?

    • @pattufreefincal
      @pattufreefincal  6 лет назад +1

      no I barely see it 2-3 times a year. See:
      freefincal.com/my-personal-financial-audit-2017/

  • @ramanbehal267
    @ramanbehal267 5 лет назад

    Right way of expressing 👍🤝

  • @kaveshram
    @kaveshram 6 лет назад +1

    thanks for clearing confusion

  • @skumarv12
    @skumarv12 4 года назад

    Very well said Sir

  • @shashankm1403
    @shashankm1403 4 года назад

    Hello Sir, Thank you very much for these valuable videos and task you took up. Really appreciate it. I am not from a financial background but I am trying to do a financial planning in achieving my goals. I have a technical question. Please clarify it if you get a chance. Basically I want to know which is the correct formula in calculating the corpus growth with assumed constant growth rate. If I use CAGR formula FV=PV*(1+CAGR)^T the curve is exponential but in reality MF works by unit price appreciation every year (Like simple interest) If I use simple interest formula for appreciated amount every year (FV=PV*(1+SI)+PV*(1+SI)+....., the graph is linear, Which is the correct way to find the corpus? (Assuming a constant growth rate)?

  • @iswaryaparthiban9262
    @iswaryaparthiban9262 6 лет назад

    Can we invest in mutual fund by using Groww? Please suggest sir? It's trustable one?
    Sir please your input please?

  • @fenildoshi7547
    @fenildoshi7547 6 лет назад

    Sir please review DSP Equal nifty 50 index fund.. I'm looking to start SIP in this fund...newly lauch scheme..the one good thing which i like about this fund is there holding they have holdings in all 50 company's while other funds don't have all 50 company's holdings in their portfolio.. please review it and help us all
    Thank you..

    • @pattufreefincal
      @pattufreefincal  6 лет назад

      See this
      freefincal.com/nifty-50-equal-weight-index/

  • @kirijack9581
    @kirijack9581 6 месяцев назад

    What a man

  • @akalawfirmlawyers1309
    @akalawfirmlawyers1309 6 лет назад

    Thanks liked n shared

  • @ravikiran-ub2nv
    @ravikiran-ub2nv 5 лет назад

    You are superb sir

  • @kartz24
    @kartz24 6 лет назад +1

    On lighter note, If returns are not so important why do spend some much time to analyse, develop xl calculators and spending time to write awesome blogs in freefincal! 🤔

  • @sansid5127
    @sansid5127 5 лет назад

    is not cagr average of the certain period of time like 5y , 10y, 15y,.....

    • @pattufreefincal
      @pattufreefincal  5 лет назад

      no, it is not the kind of average that we are used to

  • @dharamveersingh7627
    @dharamveersingh7627 6 лет назад

    . . . 👍

  • @HarunRashid-fo3jx
    @HarunRashid-fo3jx 6 лет назад +5

    Till today I thought you are a genius wrt finance calculatons.
    Now I understood you are not worth watching.

    • @pattufreefincal
      @pattufreefincal  6 лет назад +12

      I was always a useless loser.

    • @serenity_now1999
      @serenity_now1999 5 лет назад +1

      Completely agree!.. Does he not understand the concept of base effect ?. If a person already has large amount saved or earned, he/she can invest it in fixed income and still have enough corpus for retirement ( this despite inflation eroding the value of money). But for two people who are starting with same amount, returns generated matters.. The difference in final amount at 8 and 15% is very large.

    • @kmbala555
      @kmbala555 3 года назад +1

      @@serenity_now1999 Yes there is a huge difference between 8 to 15%, But can you guaranteed 15% returns from equity? No one can guarantee. He is saying, we need to have proper diversification in order to manage the risk in equity.