Investment Masterclass in 23 Minutes | Vaibhav Kadnar

[00:01] We will invest ₹5000 every month. Same amount for same duration but in five different places like FD, SIP, Gold, Stocks and Crypto

[00:13] and by the end of this video we will know how much money is made in each option. But the purpose of this video is n't just to find a winner because in investing, the biggest number [music] is n't always the best decision. Now

[00:25] why this happens, you will know by the end of the video. And along with this, we will also see the comparison for 10 years, 20 years, 30 years to see work somewhere or have a business, remember that the rules are different for everyone.

[00:41] So let's start with the experiment. First of all let us clear the rules of the experiment. Right now, in every option that comes in front of you, we will put ₹5,000 per month. Neither ₹1 less nor ₹1 more. Meaning, our total investment in one year will be

[00:53] ₹60,000 and in 10 years the total investment will be ₹6 lakh and in 20 years it will be ₹12 lakh and in this way we will invest a total of ₹18 lakh in 30 years. Remember this is the principal amount i.e. how much money we invested from our pocket over these

[01:09] not making any lump sum investment here. We are not doing this that we invest ₹18 lakh today and see its results after 30 years. ₹18 lakhs don't grow on trees. So we are taking the easy route. And this is where this number comes in at ₹5,000 per month.

[01:22] This entire experiment will be exactly the same as a normal salaried person or a student, a freelancer or a business owner investing a little bit of his income every month. Now understand that there are some fundamental things here.

[01:34] Apart from FD, there is no fixed return on any other option. The return of SIP will completely depend on the market. The returns on gold will depend on the cycle and the returns on stocks will depend on company selection.

[01:46] returns will depend on volatility. Therefore, we will consider the average assumed returns only. Let's start the comparison. Let's go ahead 10 years. Till now we have invested ₹6 lakh. ₹5,000 for 12 months equals ₹6,000 at year end ₹6,000

[02:02] at year for 10 years equals ₹6 lakh. Easy calculation. Now let us see what its approximate result will be. If you get around 6% return on FD, then ₹6 lakh can become roughly around ₹8.2 lakh. After that, if you get an average return of around 8% on gold,

[02:16] then its amount will be roughly ₹9.1 lakh. And if the SIP gives a return of around 12%, which it has been giving on an average basis, then ₹6 lakh will grow to ₹1.5 lakh. And if we consider that you will get around 15% return in direct stock, then the

[02:29] amount will be roughly ₹1.8 lakh. And if you invest in crypto, then even ₹1.8 lakh. And if you invest in crypto, then even if we get around 20% return, that amount will be around ₹1.8 lakh. Now take a

[02:42] amount will be around ₹1.8 lakh. Now take a crypto is a clear winner. But stop here because this is the point where most of the people make a mistake. They only look at the final number. They

[02:54] India's mentality is so bad that they always need some get rich quick what I am telling you next. Your money grew slowly in FD. But here the tension was the least. Now this tension was less because FD is

[03:10] considered the safest option in India. But this is a misunderstanding of the people because you people are unaware of the world. People think that their money is safe but it is not so. Wait, let me explain. Deposits in Indian banks are covered by DICGC insurance.

[03:23] In which the bank is covered up to ₹5 lakh on depository including principal and interest. That is, in these simple words, if you have made an FD of Rs 10 lakh, 50 lakh or even Rs 1 crore in any bank. If the bank collapses, you will only get

[03:39] ₹5 lakh from the government or from the insurance. And this is where your first illusion, which your parents tell you, is broken – that FD is the safest. FD is safe but unlimited is not safe. It is safe up to a certain limit. That is why, if you are

[03:53] thinking of making an FD, then I would suggest you one thing that instead of keeping all the money in one bank, it is better to spread the amount in different strong banks. Then comes Gold Pay which has given us better returns than FD.

[04:05] But the returns on gold do not always come in a straight line. Just like FD will give you 6% every year, gold will not give you 8% every year. Sometimes gold remains at almost the same level for two-three years and sometimes it suddenly moves very fast during times of uncertainty inflation or any

[04:18] crisis or during any war. So there is a big doubt whether you will get its returns every year or not. we saw a little bit of compounding. That's why its percentage was very high.

[04:33] But this 10 years is a very small number to see the real magic of compounding. When you later see the comparison of 20 years and 30 years, you will yourself realize then come the stocks that gave

[04:46] us strong returns. But this is possible only if you choose a good company. starting out has zero knowledge about People often invest in any stock based on what they hear from their friends and often they

[05:00] area of ​​stocks, after that the risk increases a little and by the time you reach crypto, that brother, I had invested Rs 6 lakh and it became Rs 18 lakh but the risk behind it is also the same. Look, the amount you have invested in crypto can also crash by 50 to 70 taka.

[05:15] Crash means seeing a decline because crypto is very volatile. That means there are a lot of ups and downs in it. The chart of crypto will be appearing in front of you. Look at it carefully. Look how many up and down lines there are

[05:27] in this. And that is why this 10 year result gives us a very important lesson. No doubt returns are important in investment. But along with the returns, your sleep is also important. You want to feel from within that

[05:39] brother, my money should be safe. If I invest money in it and it gets lost, whenever you try to invest for a long time period, you will notice that whenever the price goes up or down, your panic button gets turned on.

[05:51] You think that I should exit midway so that I can avoid further loss. And if you are a person who takes too many decisions in panic, then my brother, please quit this video right here and leave. It will take you some time to

[06:03] get into investing because investing is a very long term game. And just numbers in the Excel sheet. You will never see them in real life. Now all these FDs, SIPs, Gold are all in rupees. And in the last 2

[06:16] years, the rupee has reached from ₹82 to ₹95 in comparison to the dollar. Now I have seen many that brother, the value of rupee has increased so much that no one knows what will happen next, but you can also find an opportunity in this dilemma. Now all these

[06:31] FDs, SIPs, Gold are all in Rupees. And in the last 2 years it has fallen from ₹82 to ₹95 against the dollar. By increasing the value of Rupees, you get a small benefit which I will explain to you. You can invest in US stocks.

[06:46] gives you two benefits. If the stock grows first, you will definitely get its benefit. Along with that, if the dollar is strong then its added benefit is also obtained. Now suppose today I buy a stock by investing $1. For example, let us

[07:00] assume the price of any stock was ₹90. Now I bought that stock for ₹90. falls further. That means the dollar becomes stronger. For example, the price of $1 becomes ₹150, ₹200, ₹ 300 whatever it is. So the more that price

[07:15] increases, the more money you will get in returns. When you Now look at the other side, Apple, Nvidia, Google, Tesla are the companies whose products you use every day. The entire world of AI is in their hands. And

[07:31] if I talk about Nvidia, they have given a return of $33,000% in the last 10 years. But none of these stocks are listed in India. You give them money every day but do not earn from them. Now suppose you had invested even $100 there,

[07:45] imagine how much it would have become. That means, in simple words, if you had invested ₹500 in Nvidia 10 years ago, its value would have become $1.6 crore today. Brother, where will you get this for Rs 500 to Rs 1.6 crore and you think for yourself, you use Apple phone and

[08:01] you think for yourself, you use Apple phone and And if you look at the entire US market, SNP 500 has SNP 500 has given 30% return in the last one year. Whereas NFT 50 has

[08:16] given negative returns. So what happens ? Basically, investing in the US stock market ? Basically, investing in the US stock market is up. But if you invest in both, you are always safe.

[08:29] Now you people will think how can we invest in the US while sitting in India? So this is where IAD Money comes in. Now the first question that will come to everyone's mind is whether it is legal to buy US stocks from India? So yes that is ID Money Gift City's Gap Licensed

[08:42] Broker which is regulated under IFSCA. Your KYC is done in India and your money moves under Indian regulations. Even when you invest globally,

[09:02] sharing your information with intermediaries. So brother, you will not find anything safer and more secure than this another question will come to your mind that the share of Apple is very expensive brother. One share costs ₹26,000. Where do I

[09:14] get ₹26,000 from? So this is where the concept of fractional investing comes in, which is prevalent n't need to take the entire share. With just ₹100 you can buy a share of Apple, Nvidia, Tesla. And because of this, today anyone from an 18 year old

[09:28] child to a 60 year old man can invest here. In fact, here you can do an SIP in US stocks from just ₹500. There is as we provide readymade tax reports directly in the ITR format. In fact,

[09:43] I myself have also invested with ID money. I'll just show you the mail. I am not showing how much investment I have made. But yes, I will show you the mail. I received an email this morning from ID Money. Look, you get such mail. If the

[09:56] document is password protected then it will not open, my brother. But or that is how they send you all the information related to tax. And not only this, through Global ETF, you can also invest in growing economies like South Korea, Taiwan in a single investment.

[10:10] countries are growing a lot in the recent times because there has been a huge boom in AIS semiconductors and it is going to be the one that is going to shape things. In fact, South Korean ATF has given returns of up to 180% in one year and Taiwanese

[10:23] ATF has given returns of 80%. Look, if you also want to start investing then opening an account on ID Money is absolutely free. There are no account opening charges. And their onboarding process is so smooth that you

[10:37] experiment that we are doing in this video, you can start it in the US market right today. find the link to it in my description below. So you must go there and download it once. If you do n't download it, I know you will never use it. So download it.

[10:52] Take the first step. So let's go forward 20 years. Even here you will have to deposit only ₹5,000 per month. So your total invested amount for 20 years will be ₹12 lakh. interesting. If you get a return of around 6% in FD, then your ₹12 lakh can

[11:08] return of around 6% in FD, then your ₹12 lakh can become roughly around ₹23 lakh. If you get 8% interest on gold then that amount will be roughly ₹29.5 lakh. If you continue to get the same 12% return in SIP, your corpus can become around ₹49.5 lakh. And

[11:23] if we consider even 15% return in direct stocks, then your amount can reach roughly around ₹75 lakh and if crypto gives 20% return consistently, then this number can cross ₹1.55 crore. So now here you will get to

[11:38] see the real magic of compounding. This is the real reason why I love compounding. This difference between FD and SIP in 10 years was a little noticeable. But in 20 years that difference has become life changing. Where FD is giving you ₹3 lakh and where

[11:53] SIP is giving you ₹49.5 lakh, more than double the amount. Now this happens because in investing, time is not just a duration. It is like a multiplier. You invest money for the first few years, after that your money starts making money on its own.

[12:06] And after 20 years, the ₹5,000 you were investing every month seems like a small amount, just like a drop of water in the ocean. But there is a trap here too. As the returns increased, the emotional pressure also increased. You will feel guaranteed bored in FD,

[12:19] brother. You will wonder when will the money increase brother? When will it increase? And you will grow old waiting for that. increase brother? When will it increase? And you will grow old waiting for that. brother, should I withdraw the money? What will happen to my money? Will he survive or not?

[12:31] So you will think that brother, I should withdraw the money from gold and invest it somewhere else. And if you choose the wrong company in stocks, your 510 years will be wasted. And if this crypto crashes even a little, then your entire

[12:45] existence can end, brother. That's why this 20 year old lesson is very simple. Compounding rewards those who not only invest but also you can win this game of investing only if you are able to stay in the field for a long time

[13:01] and unfortunately, in today's time, many people are not able to do this. So, 90%, 99% of your competition has already been removed because people do not have the patience to invest for 10 years, 20 years, 30 years. Since you are talking about 30 years, let's

[13:13] finally move 30 years ahead. Till now you have invested a total of ₹18 lakh but after 30 years the result does not look like simple addition or subtraction because now compounding starts showing its full game. If you get around 6% return on FD, then

[13:26] ₹18 lakh can become roughly around ₹50 lakh. If you get the same 8% average return in gold, your amount can be ₹75 lakh. At 12% in SIP, he will become ₹1.75 crore. At 15% in End Direct stock, that amount will

[13:42] 15% in End Direct stock, that amount will reach ₹3.45 crore. And then I come back to crypto. Even if you take a 20% average [music] then this number will go around ₹1.8 crore. Brother, make ₹18 lakh into ₹11.8 crore.

[13:57] Now here an obvious thought will come to your mind that [Music] Vaibhav Bhai, I feel that crypto is the best. I close my eyes and sell all my property and both the brothers will meet over a cup of tea and become millionaires. But remember, this decision can be the

[14:13] Because in the Excel sheet, I have written 20% in front of crypto, it was I wrote it in just 2 seconds. But in real life, earning 20% ​​returns for 30 years

[14:25] is very very very difficult. And even more difficult is to stay in that investment for 30 years. When you know that this crypto market keeps going up and down again and again. that this crypto market keeps going up and down again and again.

[14:37] That means if you invest ₹1 lakh, it can reduce to ₹00. And no matter how much you say no, it is very scary for someone. If you have only ₹1 lakh. So if that ₹1 lakh becomes ₹00 then it is the same game with all your dead stocks. If

[14:51] the company is wrong then your investment is wrong. SIP is relatively easy because instead of becoming an expert, you just follow the system that is set. And if I talk about gold, it is actually never meant for long term wealth creation.

[15:04] This is not a protection class asset. That means no matter how the world turns upside down , no matter how many wars happen , no matter what PMCM comes, brother gold will always hold its value because it has held its value in such a long history.

[15:19] And as we all know history always repeats itself. And this FD of yours will never make you rich after 30 years. Mostly she will preserve your money. I mean, to some extent its value may

[15:33] entire result of 30 years gives us a very important lesson. Which is our lesson number three. Money in the market is not made by those who chase the highest returns. Money is made only by those who choose the right game according to their goals, risk and patience.

[15:48] But how do you choose the right game? So while choosing an investment, do people usually ask the same question: how much return will I investor does not ask a single question. He asks five questions. First of all,

[16:01] note it down quickly before telling anything and every time you are going to invest money somewhere, then invest money somewhere, then How much return can I get? Question number two: How high is the risk? Number three,

[16:15] for how long will my money be invested somewhere? And number four, do I understand this investment or not? And last but not the least, if this investment falls by 50%, will I panic or will I be able to hold on to it in that situation.

[16:30] This is the question you have to ask yourself. And remember, investing may seem very exciting to a 22-year-old student, thinking rich. The same investment can also be stressful for a 45-year-old family man.

[16:45] He will think that brother, this is my life's earnings. My children are growing up. He has education. There are all these other things and what if I lose my money ? That is why copy-paste things do not work in investing. Here

[16:58] you have to understand the context of your life. That's why find answers to these five questions first. First of all, is your income stable or irregular? Number two, do you have the responsibility of your family or not? Number

[17:12] three, do you have an emergency fund or not? Number four, are you investing for a short-term goal or are you investing for long-term wealth? And the most important number five is whether you get excited or scared by the risk.

[17:26] You will have to do your own analysis of this. Because if the investment goes against your personality then you will never be able to sustain it in the long term. And if you are not able to survive in any game then brother, even the best of the

[17:38] best returns in the world are of no use to you. Now a genuine question will arise in your mind that if highest return is not the best investment then how should Vaibhav Bhai choose the best plan? And the answer to this is very simple according to your time horizon.

[17:51] Meaning when do you need this money? If you need the money within one to three years, say to buy a house or a car, then your main goal should not be returns. Because if you invest money in stocks or crypto for a short-term goal

[18:06] and the market accidentally falls at the wrong time, you will have to withdraw the money at a loss when you need it. That is why if you have any short , a house, then FD, savings, liquid funds or low risk

[18:19] options are always better for that. Now if your time horizon is 5 to 10 years, then some growth can be added here. Here you can start the role of SIP along with FD and Gold. This stage is for those people who

[18:31] want growth but do not want to take the full risk that what will happen if all my money is lost? And then we come to the 10 to 20 year horizon. Here the role of stocks becomes very strong and along with that

[18:44] Because as the time increases, the impact of market volatility said might seem a bit complicated to you to understand. Let me explain it to you in a simplified manner. This is a small graph that you are seeing on your screen which is a

[18:57] graph of 1 month. You see how much up and down fluctuation there is in it. You are not able to understand that brother the market is going down. What is happening. You might be thinking that brother, I will sell it. If you look at it on a 5 year or 10 year frame, you will

[19:09] realize that this graph is going up. So that is what time does to your investment. Over time, any type of investment always goes up somewhere or the other. Yes, it will go up a little less or a little more, it will depend

[19:21] totally on your investment. But there is only one condition here. You do n't have to exit in panic anywhere in between. If you have decided, if you have decided that I will touch the money only after 10-20 years, then you have to do the same. Now

[19:34] after the time horizon, another important thing comes that who are you? Investment also differs according to your personality type. Because the same investment plan does said this in the beginning of the video. So if you are a student, your best

[19:48] investment is probably not FD, SIP, gold or crypto. Your best investment is in skills like communication, sales, coding, content creation or business understanding. Because at the age of 20, a return of Rs 5000 is

[20:00] not as important as increasing your earning capacity. But still, if you want to build the habit of investing, then you can start any SIP with ₹500 or even ₹1,000. are a salaried person then your biggest advantage is predictable income. That means

[20:14] you know that your salary will definitely come every month. Therefore, SIP automatically becomes a powerful option for you. As soon as your salary comes, your investment is gone. Never take the approach of 'I will invest whatever is left' because you will definitely fail with this.

[20:28] Invest first and then spend. And for those who are businessmen, I have just one simple advice for them because I myself run a business. So this is what I follow. Look, businessmen should never

[20:42] Because business itself is already a risky asset. You yourself do not know where your business will be after 5 or 10 years. So make sure you invest your money in a stable asset only. are a complete beginner then there is no need to start directly with stocks or crypto. Don't even

[20:57] touch him. First understand the simple product. What is FD? How does SIP work? What are the risks involved in mutual funds? What does an index fund consist of ? You will learn all these things in this video of mine.

[21:10] Please watch it after today. The first goal in investing is not to become rich. The first goal is to avoid stupid mistakes. And I have covered all those things in this video. Now even after explaining so much, a practical question

[21:24] ? It is a simple framework. First of all, before starting investment, create an emergency fund and keep at least 3 to 6 months' expenses in a place where you can withdraw your money easily. In most of the FDS. And

[21:37] for beginners, I give you a simple allocation. Out of ₹5000, invest ₹3500 in SIP. Invest ₹500 in gold and keep investing ₹500 in FD or emergency fund. And if you have to invest extra ₹500 then invest it for high risk learning. If you

[21:50] want to understand stocks or crypto. Forget ₹500, you can start your stock journey even with ₹100. Forget ₹500, you can start your stock journey even with ₹100. So now you people will ask what was the conclusion of this experiment? FDs

[22:03] lose, cryptos win? No. The conclusion is that every investment works differently. FD is not meant to make you rich. FD is meant to keep you stable. Gold is not meant to give returns every year. Gold is meant to provide protection against uncertainty.

[22:16] SIP may seem a bit slow to you. But in the long term, that same boring consistency creates wealth. And stocks are powerful. But only if you understand the business, have patience and can handle the cost of wrong decisions.

[22:30] exciting. But there is a huge difference between excitement and investment. If you take decisions just by looking at the highest number, then you are literally gambling and not investing. So now tell me in the comments that if you had to invest ₹5,000 per month,

[22:43] tell me in the comments that if you had to invest ₹5,000 per month, reply to you in the comments and tell you which plan is more sensible for which type of person. in the description below. If you want to invest in the US stock market

[22:58] and take the added benefit of the dollar, then you can go and download it. I would suggest you download it so that you get into the habit of investing. I will see , keep learning and as always keep inspiring.