Where to Invest your Salary (for 20% returns) ? | Akshat Shrivastava

Summary

This video guides viewers on how to strategically invest their monthly salary to potentially achieve 20%+ CAGR, emphasizing high-risk, high-reward approaches. It covers Bitcoin SIP strategies, the importance of superior assets like US equities (S&P 500, NASDAQ), and differentiates long-term investing from short-term trading in Indian markets. Key principles include booking profits at all-time highs, avoiding purchases during asset rallies, and investing when market sentiment is low. The host provides a practical portfolio example, balancing NASDAQ, Nifty50, and Bitcoin allocations, while stressing disciplined decision-making, currency-adjusted returns, and using consolidation points to optimize gains.

Takeaways

• 💰 Achieving a 20%+ CAGR is ambitious and requires high-risk, high-reward investing rather than slow-growth instruments like FDs or hybrid funds.
• 📈 The Rule of 72 shows that at 20% CAGR, your portfolio can double in approximately 3.6 years.
• 🌎 Superior assets, such as US markets (NASDAQ, S&P 500) and Bitcoin, are essential for high growth.
• 🇮🇳 Indian markets are better suited for trading rather than long-term investing due to volatility and historical returns.
• 🪙 Bitcoin should be approached with a SIP strategy over a 2-year period rather than bulk buying, due to its high volatility.
• 📊 When evaluating international assets, always adjust returns for currency depreciation to get an accurate comparison.
• 📉 Exiting at all-time highs and booking partial profits is crucial for portfolio management and mitigating risk.
• 🟢 Avoid buying assets that are already in a strong upward trend; wait for consolidation phases before investing.
• 🔻 Invest more aggressively when market sentiment is low to maximize potential gains.
• 📅 A diversified portfolio strategy could include: a majority in US equities (investing), a portion in Indian equities (trading), a small allocation in Bitcoin (high-risk), and some cash reserved for opportunities.
• 📈 Combining investing, trading, and strategic risk allocation can help protect against financial uncertainty while aiming for high returns.
• 📝 Keeping a disciplined approach and analyzing consolidation points, market highs, and trends ensures informed decision-making without constant screen-watching.

Q & A

What is the main objective of the video?

The main objective is to guide viewers on how to deploy or invest their monthly salary to achieve a 20%+ CAGR through high-risk, high-reward investment strategies.

What are the two Bitcoin investment strategies mentioned?

The two strategies are: 1) Bulk Buy, which is currently not recommended as Bitcoin is near all-time highs, and 2) SIP (Systematic Investment Plan), where small amounts are invested regularly over a period of time, such as 2 years.

How does the Rule of 72 relate to the 20% CAGR goal?

The Rule of 72 estimates the time required for an investment to double. For a 20% CAGR, 72 ÷ 20 ≈ 3.6 years, meaning the portfolio would double in approximately 3.6 years.

Which markets are considered superior for achieving high CAGR?

The US markets, specifically S&P 500 and NASDAQ, are considered superior due to their historical returns and potential for long-term growth, especially when adjusted for currency depreciation.

How should Indian markets be approached according to the video?

Indian markets are better suited for trading rather than long-term investing. Investors should focus on buy low/sell high strategies, using consolidation points and all-time highs to make trading decisions.

What is a consolidation point and how is it used?

A consolidation point is a chart pattern, often triangular, where the market stabilizes after a rise or fall. It is used to identify optimal buying or selling points for both trading and partial exits.

What is the recommended strategy when the market or portfolio reaches an all-time high?

It is recommended to exit or book profits on at least 20–50% of positions at all-time highs to manage risk and preserve capital, while leaving room for future reinvestment opportunities.

Why should investors avoid purchasing running assets?

Running assets are in strong uptrends, making them expensive and risky to enter. Investors should wait for consolidation phases to buy at more favorable prices.

How does market sentiment affect investment decisions?

Investors should take advantage of negative market sentiment by being fully invested when an asset is undervalued or underperforming, as this increases the potential for higher returns during recovery.

What is an example of a diversified monthly investment allocation to target 20% CAGR?

For a ₹1,00,000 investment: invest ₹50,000 in NASDAQ (US equities), ₹20,000 in Nifty50 (Indian equities at low levels), ₹10,000 in Bitcoin (high-risk), and reserve ₹20,000 as cash for opportunistic investments.

Why is adjusting for currency depreciation important when comparing international assets?

Because returns in different currencies can be misleading due to exchange rate changes. Adjusting for currency depreciation allows accurate comparison and better evaluation of actual investment performance in a single currency.

How can partial exits at all-time highs impact compounding?

Partial exits allow profit booking without significantly disrupting compounding, as investors can reinvest the capital during market corrections or dips, maintaining long-term growth potential.