How to make 5-7 crore by investing 5000 per month in share market - Magic of Index fund Investing ?

Summary

This video script offers a detailed guide on how to potentially grow an initial investment of ₹5000 into a substantial amount ranging from five to seven crores over the long term, with minimal risk and without dedicating much time to the stock market. It emphasizes the importance of high returns and thorough research, suggesting index investing as a low-risk, high-reward strategy, particularly in the NIFTY 20, which tracks the performance of top Indian companies. The script also outlines the benefits of investing in index funds, the process of starting an SIP in the NIFTY 20 through a demo account, and the impressive historical returns of the NIFTY 20, projecting its potential for future growth.

Takeaways

• 📈 The video discusses a method to potentially earn between five to seven crores in the long term with an initial investment of ₹5000 per month.
• 💡 The key to earning in the stock market long term is high return and thorough research, with an emphasis on high returns being uncertain and risky.
• 🚀 The speaker suggests investing in index funds as a low-risk, high-profit strategy, especially for those who cannot devote much time to the stock market.
• 🌐 Index funds are beneficial as they represent a diverse portfolio of top-performing companies, which can grow with the economy.
• 🇮🇳 The script mentions that India's economy is expected to grow rapidly in the next 2-3 years, making index funds a promising investment.
• 📊 The NIFTY 50 is highlighted as a popular index in India, representing the top 50 companies and offering good long-term returns.
• 🔄 NIFTY 50 is periodically updated to remove poorly performing stocks and include better-performing ones, ensuring a consistent set of high-performing companies.
• 💻 Investing in index funds does not require a demat account, making it accessible to more people.
• 📉 The video warns that predicting the stock market is nearly impossible, but suggests that India's economy is on track to become one of the world's largest by 2030.
• 📝 The script provides a step-by-step guide on how to start investing in the NIFTY 20 index through an app, emphasizing the importance of diversification and long-term commitment.
• 📈 The NIFTY 20 has shown a strong historical performance with an annual return of 16.34% over the past 20 years, outperforming many top mutual funds.

Q & A

What is the main topic of the video?

The main topic of the video is explaining how to potentially earn from five to seven crores in the long term by investing just ₹5000 monthly, with an almost all-weather-free approach, especially for those who want to become rich in the long term with the help of their salary and do not have much time for the stock market.

What are the two essential things needed to make millions in the long term from the stock market according to the video?

The two essential things needed are high returns and thorough research, focusing on top mutual funds and stocks, as high returns come with high risks and there is no guarantee of consistent high returns in the long term.

Why is investing in indices considered a low-risk, high-profit method for non-professional investors?

Investing in indices is considered low risk because it allows investors to bet on the economy of the country rather than individual companies, providing diversification and reducing the impact of poor-performing stocks.

What are the benefits of investing in indices like NIFTY and SENSEX?

Investing in indices like NIFTY and SENSEX provides benefits such as exposure to the top companies of the country, which contribute more than 50% of the products and services in India. Additionally, these indices are regularly updated to remove poorly performing stocks and include better-performing ones.

What is the significance of the NIFTY 20 index mentioned in the video?

The NIFTY 20 index is significant because it is designed to replicate the performance of the top 20 companies by weightage in the NIFTY index, providing a focused approach to investing in the most influential companies in the Indian economy.

How has the NIFTY 20 index performed over the past 20 years according to the video?

The NIFTY 20 index has performed quite well over the past 20 years, with an annual return of around 16.34%, which is considered a good annual return even when compared to many top mutual funds.

What is the process of investing in the NIFTY index through an index fund as described in the video?

The process involves opening a demat account, searching for the NIFTY index in the app, selecting the amount to invest, choosing the frequency of investment, selecting a period for the investment, and placing an order with the terms and conditions accepted.

What is the potential long-term impact of investing ₹5000 monthly in the NIFTY index from the video's perspective?

According to the video, investing ₹5000 monthly in the NIFTY index could potentially result in having around 5 crore rupees if started in childhood, and around 7 crore rupees if invested for 35 years, considering the historical returns.

How does the video address the unpredictability of the stock market for future returns?

The video acknowledges the unpredictability of the stock market but suggests that many changes happening around us directly affect the stock market. It also mentions the potential of the Indian economy to become one of the largest in the world by 2030, which could positively influence the stock market in the long term.

What advice does the video give for those who want to start investing in the NIFTY index?

The video advises viewers to open a demat account, use an app like Angel Broking, search for the NIFTY index, and follow the steps to start investing by selecting the amount, frequency, and period of investment.

How does the video suggest handling doubts or requests for more information?

The video encourages viewers to share any doubts in the comment section and also to suggest specific topics they would like to see detailed videos on, with the promise to cover popular topics in future videos.