Build a BIG PORTFOLIO (2Cr+) even with less salary | Investing Strategies

Summary

In this video, the presenter explains how to invest your salary in the stock market, with strategies tailored to different income levels. Starting with a case study on Nikhil Kamath of Zerodha, the video emphasizes personalized investment approaches and risk mitigation. It covers investing principles for various salary ranges, from 25,000 to over 1 lakh, highlighting the importance of index investing, large-cap stocks, and diversifying with volatile assets and real estate. The video also underscores the significance of generating cash flow assets and international diversification to build a robust investment portfolio.

Takeaways

• 📈 Investing style should vary based on salary levels; those earning 25,000 will have different strategies compared to those earning over 1 lakh rupees per month.
• 💡 Risk mitigation is crucial, and buying insurance is one way to hedge your investments.
• 📊 Example of Nikhil Kamat from Zerodha investing only 50% of his wealth in equities, emphasizing the importance of personalized investment strategies.
• 💼 Importance of wealth protection and diversification in investment, especially as your portfolio grows.
• 💰 For a salary of 25,000 to 35,000, aim to save and invest 20% of your salary, targeting a CAGR of 13% over 30 years.
• 📉 Focus on index investing, large-cap stocks, and understand when to invest in discounted indices for safer investments.
• 🔍 For those earning 50,000 to 75,000, take advantage of bulk buying opportunities in undervalued assets to generate higher returns.
• 💸 Generate cash flow assets such as dividend stocks or real estate to ensure reliable income streams.
• 📈 Take on more risk in your portfolio to grow it faster, but balance with safe investments for stability.
• 🏡 For those earning more than 1 lakh, diversify internationally and consider real estate investments to further diversify and protect your portfolio.

Q & A

Why is risk mitigation important regardless of salary level?

Risk mitigation is crucial because it helps protect your investments from unforeseen losses. One way to hedge risk is by purchasing insurance.

What are the two central reasons Mr. Nikhil Kamat invests only 50% of his wealth in equities?

The two reasons are: 1) His core business, Zerodha, profits when the equity market is up, so he diversifies to mitigate risk. 2) As portfolios grow larger, wealth protection becomes a priority.

What should be the primary goal for someone with a salary between 25,000 and 35,000 INR?

The primary goal should be wealth preservation in the stock market while focusing on increasing active income through their primary job.

How should someone with a salary of 25,000 INR invest their money?

They should save 20% of their salary, which is 5,000 INR, and aim for a CAGR of 13% over 30 years, focusing on index investing and large-cap stocks available at discounts.

Why is index investing considered safe?

Index investing is considered safe because it involves investing in a collection of stable assets, such as the Nifty 50 Index or ITBees, which are less likely to lose value significantly.

What strategy should be followed to make 13-14% returns in the stock market?

The strategy includes investing in discounted indexes, buying large-cap stocks at a discount, and allocating a small portion to volatile assets like small and mid-cap stocks.

What additional steps should someone with a salary between 50,000 and 75,000 INR take when investing?

They should take advantage of bulk investing opportunities, generate cash flow assets like dividend stocks, and add more risk to their portfolio for potential higher returns.

What are bulk investing opportunities?

Bulk investing opportunities involve investing a significant amount of money in assets available at a discount, such as Nifty IT or HDFC Bank when they are undervalued.

Why is international diversification important for someone with a salary above 1 lakh INR?

International diversification is important to mitigate risks associated with economic shifts and volatility in the domestic market, ensuring a balanced and secure portfolio.

How should someone with a salary above 1 lakh INR segment their portfolio?

They should create segments for different goals, such as retirement planning with stable large-cap stocks and bonds, and growth with diversified international investments and real estate.