ETF Investment Guide | Best ETF for Buying | Step by Step Learn Stock Market Investing

Summary

This video offers an in-depth guide to ETF investing, showcasing how to capitalize on exchange-traded funds for wealth creation. The presenter, using his brother Vibhu's account as a case study, explains the concept of ETFs, their advantages over mutual funds in terms of lower expense ratios and tracking errors, and the importance of diversification. The script delves into specific ETFs like the Mom30 ETF, FANG, and Bank Nifty, illustrating their performance and investment strategy. It also touches on the use of gold ETFs for hedging and the potential of investing in international markets like China's tech sector. The presenter emphasizes a systematic approach to investing in falling ETFs and the power of compounding for long-term gains.

Takeaways

• 📈 ETFs, or Exchange Traded Funds, are investment funds that are traded on stock exchanges and can be a way to diversify investments across multiple companies.
• 💼 The speaker emphasizes the importance of investing in ETFs for their lower expense ratios compared to mutual funds, making them a cost-effective investment option.
• 🔍 The script discusses the concept of 'tracking error' in ETFs, which is the difference between the ETF's performance and the index it is designed to track.
• 🌟 The video introduces various types of ETFs, including Mom30 ETF, which focuses on the top 30 momentum companies from the Nifty 50, and Mayfang, which includes top US tech companies like Facebook, Apple, Amazon, Netflix, and Google.
• 🏦 The speaker highlights the benefits of investing in Bank Nifty ETFs, which track the performance of a basket of bank stocks, as a way to support the growth of the country's banking sector.
• 📊 ETFs can also be used for hedging purposes, such as investing in gold and silver ETFs, which can provide stability when the stock market is volatile.
• 📈 The script explains that small cap ETFs can offer higher returns due to their potential for rapid growth compared to larger, more established companies.
• 🌍 The video mentions international ETFs, such as those focused on Chinese tech companies, as a way to invest in foreign markets from India.
• 📊 The importance of NAV, or Net Asset Value, is highlighted as it represents the value of one share of an ETF, calculated based on the current price of the stocks in the fund.
• 📉 The speaker shares a personal investment strategy of buying ETFs when they are down, spreading investments across multiple days and funds to capitalize on market fluctuations.
• 🌱 The script concludes by encouraging long-term ETF investing and the power of compounding, as well as the importance of understanding taxes and charges associated with ETF investments.

Q & A

What is the main topic of the video?

The main topic of the video is ETF (Exchange Traded Fund) investing, explaining how to invest in ETFs, the benefits of doing so, and the presenter's personal investment strategies.

What is an ETF and how does it differ from individual stocks?

An ETF, or Exchange Traded Fund, is a type of investment fund that is traded on stock exchanges much like individual stocks. The key difference is that an ETF holds a collection or 'basket' of different stocks, providing diversification and reducing the risk associated with investing in a single company.

What is the significance of the expense ratio in ETFs?

The expense ratio in ETFs represents the annual fees charged by the fund managers as a percentage of the assets under management. It is significant because it directly affects the net return on investment, with lower expense ratios generally being more favorable for investors.

What is tracking error and why is it important in ETFs?

Tracking error is the divergence between the performance of an ETF and its underlying index. It is important because it indicates how well the ETF is replicating the performance of the index it is supposed to track. A lower tracking error is generally preferred as it means the ETF is closely aligned with the index performance.

What is the Mom30 ETF and how has it performed in the last one year according to the video?

The Mom30 ETF, as mentioned in the video, is an ETF of Nifty that consists of 30 momentum companies out of 200. It has performed well, with a return of 75% in the last one year, outperforming the Nifty index itself, which had a return of 25% over the same period.

What is the FANG ETF and what does it represent?

The FANG ETF represents a basket of top technology companies in the US market, specifically including Facebook, Apple, Amazon, Netflix, and Google. These companies are considered market leaders with significant influence and growth potential.

Why does the presenter suggest investing in Bank Nifty ETF?

The presenter suggests investing in Bank Nifty ETF because they believe that the growth of a country's banks is indicative of the country's overall growth. By investing in the Bank Nifty ETF, one can gain exposure to a diversified portfolio of banking stocks, potentially benefiting from the sector's growth.

What is the strategy the presenter uses for investing in ETFs?

The presenter's strategy involves investing a fixed amount on a regular basis, such as daily or monthly, into ETFs that are showing a decline in value on that day. This approach is based on the principle of buying low and taking advantage of market fluctuations.

Why does the presenter consider ETF investing better than stock investing?

The presenter considers ETF investing better than stock investing because ETFs offer diversification, reducing the risk of significant losses due to poor performance or bad news about a single company. ETFs also tend to have lower expense ratios compared to actively managed mutual funds.

What is the role of gold and silver ETFs in the presenter's portfolio?

Gold and silver ETFs serve as a hedge in the presenter's portfolio. They are used to protect against market downturns, as the prices of precious metals like gold and silver tend to increase when the stock market is performing poorly.

How does the presenter approach compounding in the context of ETF investing?

The presenter emphasizes the importance of long-term investing in ETFs to take advantage of compounding. By reinvesting returns and allowing them to generate further returns over time, investors can significantly increase their wealth.

Outlines

00:00

😀 Introduction to ETF Investing

The script introduces the concept of ETF (Exchange Traded Fund) investing, explaining how ETFs can be used to create wealth with less risk compared to individual stocks. It mentions the presenter's personal investment strategy and introduces the various ETFs discussed in the video, such as the Mom30 ETF, which has provided a 75% return in the last year, outperforming the Nifty's 25% increase. The script emphasizes the benefits of ETFs, including diversification and lower expense ratios compared to mutual funds, and clarifies that ETFs are a relatively new investment vehicle in India.

05:02

📊 Understanding ETF Components: Expense Ratio and Tracking Error

This paragraph delves into the specifics of ETFs, focusing on two key components: the expense ratio, which is the fee charged by the ETF provider, and the tracking error, which measures how closely an ETF follows its underlying index. The presenter contrasts ETFs with mutual funds, highlighting that ETFs generally have lower expense ratios. The paragraph also introduces the concept of momentum in ETFs and discusses the importance of fund managers' role in minimizing tracking error.

10:04

🌐 Diversifying Globally with ETFs: FANG and Bank Nifty

The script moves on to discuss the diversification benefits of ETFs, using the Mayfang ETF as an example, which includes top US tech companies like Facebook, Apple, Amazon, Netflix, and Google. It explains the rationale behind investing in these companies due to their market dominance and lack of competition. The presenter also touches on the Bank Nifty ETF, which allows investors to invest in a basket of Indian banks, emphasizing the importance of banks for a country's growth and the strategy of not betting on individual bank performance.

15:05

📊 ETFs for Sector-Specific and Small Cap Investments

The fourth paragraph discusses the use of ETFs for investing in specific sectors and small-cap companies. It explains the concept of market capitalization and how it affects the weightage of different stocks within an index, using Bank Nifty as an example. The presenter also introduces the HDFC SML 250 ETF, which focuses on small-cap companies that have the potential for high returns due to their rapid growth capabilities.

20:06

🛡 Hedging with Gold ETFs and Diversifying into International Markets

This section of the script introduces the concept of hedging with gold ETFs, which are used to protect investments during times of market downturns. It also discusses the presenter's strategy of investing in international markets, specifically mentioning the MAHK tech ETF, which includes top Chinese tech companies. The script highlights the importance of diversification and the opportunities presented by international ETFs for Indian investors.

25:06

📈 ETF Investing Strategy and Portfolio Overview

The presenter outlines their ETF investing strategy, which involves buying ETFs that have fallen in value and holding them for the long term to benefit from compounding returns. They provide a detailed overview of their portfolio, including investments in various ETFs such as Mayfang, Bank Nifty, small-cap ETFs, and international ETFs like MAHK tech. The script emphasizes the aggressive nature of the portfolio and the rationale behind each investment.

🏦 Final Thoughts on ETF Investing and Next Steps

In the concluding paragraph, the script summarizes the benefits of ETF investing, encourages viewers to ask questions, and promotes sharing the video to help others understand ETFs. The presenter also provides information on opening a Demat account for new investors and teases upcoming content on taxes and charges related to ETF investments, promising to cover these topics in a future video.

Keywords

💡ETF (Exchange Traded Fund)

An ETF is an investment fund that is traded on stock exchanges, much like individual stocks. They are designed to track the performance of various indexes, sectors, commodities, or a mix of asset classes. In the video, ETFs are presented as a means of diversified investment, allowing viewers to invest in a basket of assets, such as stocks of various companies, instead of betting on a single company. The script mentions different types of ETFs, like Mom30 ETF and Bank Nifty ETF, to illustrate the concept.

💡Investing

Investing refers to allocating resources, usually money, with the expectation of generating an income or profit. In the context of the video, investing is the process of putting money into ETFs with the aim of growing wealth over time. The speaker discusses their personal formula for investing in ETFs and emphasizes the importance of choosing the right ETFs to ensure a profitable portfolio.

💡Portfolio

A portfolio represents a collection of financial assets, such as stocks, bonds, ETFs, and cash equivalents, held by an investor. In the video, the speaker talks about creating a portfolio with ETFs that can remain 'in green', meaning profitable, even in a negative market, by diversifying investments across different sectors and asset classes.

💡Momentum ETF

A momentum ETF is a type of exchange-traded fund that seeks to invest in securities that exhibit a high level of momentum, typically the top-performing stocks within a particular index or sector. The script mentions Mom30 ETF as an example, which represents a basket of 30 momentum stocks from the Nifty 200, highlighting the significant return on investment it has provided over the past year.

💡Expense Ratio

The expense ratio is the annual fee that all investment funds charge their shareholders; the ratio is expressed as a percentage of the fund's average net assets. In the video, the expense ratio is highlighted as an important factor to consider when choosing an ETF, with the speaker comparing the lower expense ratios of ETFs to those of mutual funds, thus emphasizing the cost-effectiveness of ETFs.

💡Tracking Error

Tracking error measures how closely a fund follows the index it is designed to track. A lower tracking error indicates that the fund's performance is more in line with the index. The script discusses tracking error in the context of ETFs, using Nifty Bees as an example, which has a very low tracking error due to its investment in all the companies of the Nifty index.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk. The video script explains that ETFs offer a way to create a diversified portfolio by investing in multiple companies or sectors, reducing the risk associated with investing in individual stocks.

💡FANG

FANG is an acronym for four high-performing technology stocks in the market: Facebook, Amazon, Netflix, and Google (now Alphabet Inc.). The script mentions an ETF that includes these companies, emphasizing the growth potential and market dominance of these top tech firms, and how an ETF allows investors to gain exposure to these companies through a single investment.

💡Bank Nifty

Bank Nifty is a benchmark index that represents the performance of a specific set of banking and financial services companies listed on the National Stock Exchange (NSE) of India. The video discusses investing in Bank Nifty through ETFs or mutual funds, highlighting the potential for growth in the banking sector as a reflection of the country's economic health.

💡Small Cap

Small cap refers to companies with a relatively small market capitalization. These companies are considered to have higher growth potential but also higher risk compared to larger, more established companies. The script mentions HDFC SML 250, an ETF that invests in small-cap companies, and discusses the higher returns these investments can offer compared to larger, more stable companies.

💡Hedge

A hedge in finance is a strategy or action taken to reduce or offset potential losses or risks in an investment. In the video, the speaker mentions using gold and silver ETFs as a hedge against stock market downturns, as the prices of precious metals tend to rise when the stock market falls, thus providing a balance to the overall portfolio.

💡Compounding

Compounding refers to the process where earnings from an investment are reinvested, allowing the investment to earn returns on both the original principal and the accumulated earnings. The script touches on the power of compounding as a means to significantly grow wealth over the long term through ETF investing.

Highlights

ETFs (Exchange Traded Funds) are a way to invest in a basket of stocks, reducing risk compared to investing in individual stocks.

The presenter shares their personal ETF investment strategy, emphasizing a diversified portfolio for minimizing losses even in a negative market.

Mom30 ETF is highlighted as an example of a momentum ETF, showing a 75% return in one year compared to Nifty's 25%.

ETFs are presented as a relatively new concept in India, with more traditional knowledge of mutual funds.

The importance of the expense ratio in ETFs is discussed, with ETFs generally having lower expense ratios than mutual funds.

Tracking error is introduced as a measure of how closely an ETF follows its underlying index.

Mayfang ETF is used to illustrate the potential of investing in top US tech companies like Facebook, Apple, Amazon, Netflix, and Google.

Bank Nifty ETFs are recommended for those who believe in the growth of India's banking sector as a reflection of the country's economic growth.

The concept of weightage in indices is explained, with examples of how it affects the movement of Bank Nifty.

HDFC SML 250 ETF is mentioned as an investment in small-cap companies, which can offer high returns due to their potential for rapid growth.

NAV (Net Asset Value) of ETFs is discussed as the value of one share based on the current price of the stocks in the fund.

The presenter shares their investment in MAHK tech, an ETF that includes top Chinese tech companies, as a strategic move based on market analysis.

Gold ETFs are recommended for their role as a hedge against stock market downturns, with an example of the presenter's own investment.

The presenter's method of investing in falling ETFs is shared, emphasizing buying more of the ETFs that have fallen more significantly.

A strategy for consistent ETF investment is presented, suggesting a fixed daily investment amount regardless of market fluctuations.

The video concludes with an encouragement for long-term ETF investing and the power of compounding for wealth creation.

Transcripts

In this video, you will learn about ETF investing, how you

can invest in exchange traded funds and create a big wealth

and what is the formula of investing in it which I follow

myself, with which you will see that your portfolio will be

in green and even

if you are going to the negative market, you will not have

that much loss.

So today let's understand ETF investing in detail.

So today I have with me, as you know he is my younger

brother, now this is Vibhu's account,

Vibhu is your account, so here what is there in your

account, we will understand it in detail today.

So here if we see, we have purchased some shares, we will

side it, let's start from here, so this is not an ETF, it

is a government security, today in this video we are not

going to talk about government security, so let's side it

too, let's start from

here, this is Mom30 ETF, so this is a momentum ETF, now

what is ETF, let's understand it first, ETF means exchange

traded fund, you go to any screener, you can write ETF

here, so as I said, I talked about Mom30, so Mom30 ETF, now

what is it telling, it

is telling that this is an ETF of Nifty out of 200

companies, out of which 30 will be momentum, now if you see

this ETF, see this, in the last one year, how much return

has it given, 75%, if we talk about Nifty return, people

only invest in Nifty, so

if we talk about Nifty return, in one year Nifty has also

increased, but how much has Nifty increased, 25%, and what

we are talking about, so I will write again, Mom30 ETF, so

I am not giving any recommendation here, this is just for

education purpose,

I want to explain to you, what is ETF, how we invest in

ETF, in which ETF we have invested, why we have invested, I

am trying to explain to you, so in some ETF, you will not

get data of 5 years, because it may not have started before

5 years, like this

data is showing from 2022, so ETF is a new term in India,

people have a lot of knowledge about mutual funds, ETF is

relatively a new concept, but what is it, you have to

understand that it has become an ETF after meeting some

companies, it has become

a basket, we have bought the whole basket, we have not bet

on one company, why we have not bet on one company, because

one company can do 10% in a day, but if it has 30

companies, then not all will fall, some will increase, so

overall in ETF, so much

volatility is not sold, as much as you sell in stocks, and

one stock can be 0, the company can be ruined, but if we

talk about 20-30 companies, will all be ruined, no, so

that's why we have made a diversified portfolio, I will

tell you how, so I have

bought 30 companies out of 200 companies of Nifty, which

are in the momentum, and there is a way to buy it, here it

is showing wrong, so as we are seeing, at one time its

price was 20 rupees, today its price is 35 rupees, so it

has increased by 75%, it

is a simple thing, it is increasing, there is good

liquidity in it, now let's talk that when we buy an ETF,

there are some things

that are important in ETF, one is the expense ratio, what

is the expense ratio, if you have invested 1 lakh rupees,

so they have kept their fees of 300 rupees, if this is 0.30

exchange, its expense ratio, expense ratio is less than the

mutual fund of

ETF, so if

I see the mutual fund of momentum, let's see the mutual

funds, so if you will go to mutual funds here, these are

the mutual funds, let's talk about momentum, so here I can

see Samco active momentum fund, I will click on it, this is

also a momentum fund,

what is it doing, if we see how much return it has given in

a year, it has given 35%, but if I go to expense ratio,

then its expense ratio is 0.94%, so it has reduced 900

rupees, so which is better,

ETF, ETF is cheaper than mutual funds, people think mutual

funds are cheaper, ETF is cheaper, so it is important to

understand this, but we will make a separate video on

mutual funds, if people say that I don't invest in mutual

funds, I also invest in

mutual funds, but how much I invest in ETF, percentage

wise, I will tell you when we make a video on mutual funds,

so this we understand, the first thing is expense ratio,

the second thing is tracking error, tracking error means

what is their tracking

error, what is it doing, the companies that are getting

momentum in 35 companies, they are investing money, so if a

company gets momentum, what is the percentage chance that

they have not invested money in it, that chance is 0.19%,

so this is an error,

because fund managers are working behind this, so what is

their error percentage, like if we take Nifty ETF, Nifty

Bees, its tracking error will be very less, if I take Nifty

Bees, then I will show you again, its expense ratio will be

very less, 0.04%,

very less expense ratio, nothing is there, and its tracking

error is 0.04%, because Nifty has 50 companies, they have

to invest money in 50 companies, so its tracking error is

very less, but when we become specific, there are chances

of tracking error

increasing, specific in the sense, I will explain that in

which 30 companies are getting momentum, we have to check

that, then we have to invest money in that, so here the

tracking error is more, so next ETF is Mayfang, now what is

Mayfang, now we are

not only investing in Indian companies, let's see Mayfang's

returns, 71%, you have seen Nifty, your ETFs are more than

Nifty, now in the US market, there are many astrologers, so

I will not talk about

astrologers in India, because there is also an astro fund,

so you search, so I will say that there are many people who

say that the US market will fall from here, but the US

market did not fall, so this is the US ETF, now there are

10 companies in the

US, we are very specific, we have to invest money in these

10 companies, which are the top 5 companies

FANG means Facebook, Apple, Amazon, Netflix, Google, top

companies, are these the top companies of the world, we

have to invest money in it, you use Facebook today, you

open Instagram daily, you see some ad on it daily,

Instagram is earning, Facebook

is earning, so if Meta is earning, then why should I buy

Meta, which phone do you have, which laptop do you have,

so when I am using Apple's product, then why should I not

buy it, I am satisfied, you are watching Kabaddi Sharma on

Netflix, why are you watching it, you are giving money to

Netflix,

I have to buy it, you search on Google, whatever you write,

you search on Google, if you are watching a video on

YouTube, it is of Google, so I have to buy Google, in the

same way, we are ordering clothes from Amazon, so I have to

buy that, so the thing

we are using, we are satisfied, we know that it is the best

company, it does not have any competition, today Google

maps is free for you, tomorrow Google will say that I will

take Rs.

50 per month for it, will you give, will give, so such

companies which you can say that they do not have any

competitor,

best companies of the world, so sitting in India, you have

the advantage that you can buy those companies in just Rs.

95, apart from this, there are 5 other companies, so what

we did, we invested money in it, so what is our average,

now my average will be higher, I will tell you the reason

later, my average is 83, in this, our overall profit is

83,000, 14% return, now

people will say that 14% return, so your income is showing

71%, although I have invested in your account in the last

5-6 months, the point here is that when it is increasing, I

am buying it, it is not that I bought it and sat, it is

increasing, I am buying

it,

I purchased it in your account yesterday, so the thing is

that we pick a good thing, but we keep buying it, it is not

that we buy it and sit, next we will talk about ETF, we

will talk about ETFs only, you have bank B's, now what is

this, have you heard

the name of Bank Nifty,

so the companies coming in Bank Nifty, if you want to buy

Bank Nifty, there are two ways, either you buy ETF of Bank

Nifty or you buy mutual fund of Bank Nifty, now if we talk

about ETF, the expense ratio will be very less, it is 0.19,

tracking error

is 0.03, so now who is it tracking, it is tracking the

index of Bank Nifty, now see which banks come in Bank

Nifty, you have Axis Bank,

AU Small Finance Bank, here is Bandhan Bank, Bank of

Baroda, Federal Bank, HDFC Bank,

IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, do you

have an account in any of these, so when you are using its

services, you are giving money to that bank, then why

should we not buy it, see my opinion is clear, the country

will only grow when

the country's banks grow, if the country's banks do not

grow, then the country will not grow, will India grow, then

India's banks will grow, so why should we not buy it, now I

do not know which bank will grow faster, so I buy all, I do

not know,

I don't know HDFC bank will increase or ICICI bank will

increase or IDFC bank will increase we do not know so we

are not playing a bet on that today Kotak Mahindra is

getting cheaper so I have to buy Bank Nifty so here you

have to understand one more

thing when you are talking about index now if you see here

in index there are many banks if we are talking about Bank

Nifty does everyone have the same weightage now I will show

you all the banks here there will be 12 banks in Bank Nifty

from State Bank

of India to Exit Bank if you count then there will be 12

banks in these 12 banks if there are 10 stocks in an index

then everyone has 10% weightage in index it is not like

that this is called weightage if there are 12 stocks in

Bank Nifty then everyone

has different weightage the biggest weightage is 36% of

HDFC bank if HDFC bank will move then chances of Bank Nifty

moving up is very high but second is ICICI bank with 25%

weightage so if HDFC bank is moving but ICICI bank is not

then Bank Nifty will

not move but if ICICI and HDFC both are moving then with

heavy weightage other banks are also moving up so Bank

Nifty has to move up that's why people who do trading in

Bank Nifty they keep opening different charts of Exit Bank,

ICICI Bank, Exit Bank

because it also has 11% weightage and 7% and 9% weightage

respectively of Kotak and State Bank of India so if someone

tracks these 4 banks then he does not need to track 12

banks which banks? State Bank of India, no first of all Exit

Bank, first of all who has the most weightage HDFC then

second is ICICI, third is Exit Bank 11% and then State Bank

of India so these are 4 major banks but who decides the

weightage how is it calculated? See the weightage which we

make for any index and

we keep different stock weightage then it is according to

the market cap now Bank Nifty is an index of NSE so we made

an index of banks from the listed companies on NSE so

according to the market cap they have different weightage

so you have to give me

an answer in the same way we have another exchange whose

name is BSE, does BSE have any other bank's index?

It will be there, so you have to tell the name in the

comment and you have to search it and you have to tell how

many companies are there in it, so here we have free float

market cap also written so in the same way if you see here

who has the most market

capitalization so that is why we have bought bank B's here,

we have bank B's, now in bank B's we are getting only 8000

profit and you have invested only 1 lakh so 8% you have

earned from bank

B's, if we talk about bank B's then bank B's have given 13%

return in a year and in that 13% when we have to invest

from 5-6 months, I have done bank B's later, it has been 3

months, so here if we see 1% return so it is 2% but we want

to tell that if

there is 2% return in a month then how can your return be

more, I will tell you later, next HDFC small cap 250 so I

will write here HDFC SML 250 so we have got an ETF of small

cap, now we have told you that small cap companies have a

small market cap,

market capitalization is small but it runs fast, so if you

were talking about nifty 50 when we were talking about an

index, so see nifty 50 again then I will come to this, if

we talk about nifty 50 here about returns, in index the

returns you see and

ETF returns there is a difference so I will tell you that,

this is 25% return, small cap also has an index, so if I

search nifty small cap, so I will show you nifty small cap

250 index, so now see its return of 1 year, there is 25%

and this is 62, that

is the difference, now when we talk about compounding, we

will understand compounding, this is a very big difference,

so in nifty 50, there are large cap companies, now I will

say that reliance's share will double, now think how much

work will be done

to double reliance, but a small company will not take so

much time to double, so small cap returns are very high, in

5 years it has given 190% returns, so nifty will not give

you so much returns, if we see 5 years returns again, so

nifty's index is open

again and again, because we compare with nifty, we say that

we outperformed or underperformed nifty, so here 92%

returns, so 100% extra returns you were seeing nifty small

cap, so what we did, we bought its ETF, because you cannot

buy index, so HDFC SML

250, this is our ETF name, so this is our HDFC small cap

ETF, I opened it, now you see its returns, before I show

you anything, so here you are seeing 1 year 62% returns, so

from 97 rupees its price is 159, what is its average price,

you have average

of 146, now people will say why your average is so

expensive, our average is expensive because we started

investing here only, means from last few months, second

thing is you did not start here, in my account, there is an

average from here, in your account,

there is an average from here, but even though there is an

average from here, you have earned a profit from here, so

what is the reason for this, because I will buy it today

also, so if it will fall again, then we will buy it again,

till it will continue,

we will buy it, clear, next, ask me, what is NAV, very

good, NAV means net asset value, ETFs and mutual funds, you

can say what is the value of one share, it is called net

asset value, so the data of NAV is insufficient, so you can

read here, net asset

value of an ETF is based on the current price of the stock

and asset in the fund, so whatever funds it has bought, it

is called NAV, and in its multiples, you buy it, now here

it is showing high liquidity expense ratio is 0.20, it is

very less, and tracking

ratio is 0.07, so you can compare it with category wise

also, AUM is of 252 crore rupees, if in any liquidity, what

was

AUM, asset under management, so what is the total asset

under management, so here we will go to next, and that is

MAHK tech, now what is this, we are not only invested in

India,

I felt that, my analysis says that China's market has made

it bottom, with high probability

I tracked it, that China's market is making it bottom,

means it is getting very cheap, so how to buy it, how to

buy it in India, so the way I bought it, I bought it on

your account, so this is Hang Seng's index, and its IT

companies, it has 30 companies,

we bought it 1 month back, so it is showing 7% return in

your account, in fact, it was bought

yesterday also, so we are still buying it, now I will show

you MAHK tech, it has Xiaomi in it, Xiaomi is a parent

company listed, Xiaomi, Oppo, Vivo, Oneplus, all are one

family company, so we bought it, companies like Li Auto, so

in it, China's top tech

companies are there, Alibaba also, so you can go to google

and write, MAHK tech stock list, so you will see all the

list, which stocks are there, like you play PUBG, which

company has made it, I think PUBG is of Tencent holdings,

so you can check, let's

go to money control, so let me show you the portfolio, so

these are the top 10 stocks, read this Tencent,

I think it is a gaming company, so anyways, all Lenovo,

Vaidu, all these companies are there, which is yours, it is

similar to your name, Vibhu, so these are China's top tech

companies, which we have, from semiconductor to health, so

all these companies

are there, which you said Alibaba group, so these are

Alibaba group holdings, so these are the tech companies,

from hire to kingsoft, so we have invested here, so when we

bought an ETF, so although in a day, you can see 1.27%

down, but if you see this,

so it has started running since some time, so if we see its

return for a month, then it is 9%, and in your account you

can see the return of 7%, so not bad, still we are buying

it, so we are buying it, now the problem is that the

expense ratio is a little

more, but that is not a problem because we don't have any

other way, we are coming from India, how to invest in it.

We have ETF that's why we are able to invest in it.

And tracking error? Tracking error is not visible when

there is insufficient data.

So as such if it is Merai assets then Merai assets is a

very good company.

So if they have listed any ETF of Merai assets then it is a

good enough company.

No problem.

It is ok with AMC. Then we have also bought gold.

Now gold is running for some time but I will take gold in

your account.

It must have been 5-6 months.

So you have gold worth 4 lakhs on which you have earned a

return of 30,000 rupees.

7.77%. So gold ETF, I basically buy gold and silver for

hedge.

What is hedge? If the stock market goes down then the

prices of gold and silver increase.

Ok. And for a long time if I talk about silver, there is no

silver in your account but there is a lot of silver in my

account.

So for a long time it had made a range bound structure.

So I kept buying it in accumulation mode.

Now it is giving very good returns.

What I mean to say is that we have made an ETF portfolio.

Now what has happened in this?

What have you done? You have, ok many people will ask why

Nifty is not there.

I am more aggressive on your portfolio.

I think Bank Nifty will outperform Nifty in the future.

So I have invested more in banks.

Small cap again I am aggressive with equity.

FANG I have bought top 10 companies of US, tech companies.

Then I have invested in MHK Tech in China.

And in your account, there is an ETF for hedging.

And when we talk about Nifty, why Nifty 50? From Nifty 200,

in which there is a momentum of 30, I have invested in them.

So if you see who has given the highest return? Mayfang has

given a return of 14% and here your return is of 18%.

Your momentum is 30%.

So should I myself take momentum stocks or should I invest

in them? It is better to invest in them.

Choice is yours.

So what happens in this is that it will never be zero.

If we have taken stocks in your account, then there can be

a problem in stocks.

There can be bad news in the future.

Anything can happen. So that's why I always consider ETF

investing better than stock investing.

Now what is my method? My method is very simple.

Let's go here and see the day percentage.

So I have a pen on my phone at 3 o'clock.

So whatever is at 3 o'clock, I come here and see what is

falling, what is in red.

Whatever is in red, we have to buy it.

So how can you buy it?

Suppose you have to invest 10,000 rupees a month, someone

has to invest 20,000 rupees.

I say the market is open for 20 days. You don't take all

ETFs. You say I will take 2 ETFs.

ETFs are very cheap.

We have seen that some are 200 rupees, some are 100 rupees.

So ETFs are not very expensive.

So what do you do? You see that I have to invest 20,000

rupees a month.

The market is open for 20 days.

If the market is open for 20 days, then you have to invest

1000 rupees a month.

So if I get a chance today, I have 4 ETFs, 2 are down, 2

are up.

So I will buy both of them for 500 rupees.

Today's investment is 1000 rupees.

The ones that have fallen.

Yes, the ones that have fallen.

So what are we doing? Although the price will go up, but

when it falls from top to bottom, we buy it on retracement.

And ultimately, the market has to go up.

So what are you doing? If 4 have fallen, then buy 4 for 250

rupees.

If only one has fallen, then buy it for 1000 rupees.

You can do this too.

So there are multiple possibilities with which you can buy.

So I go by percentage.

I buy more than the one that has fallen.

Now see what is the movement of stocks?

How much is the day change of a stock in a day? 3.8%. Stock

3-4% is very common.

And this is still a small cap stock. So what is in them is

that they can fall even by 10%.

You will not get an ETF that has fallen by 10%.

It is very difficult.

I will talk about even small cap index.

Falling by 10% is a very big thing.

Falling by 10% means there is a problem and the trend can

be reversed from here.

If it is falling by 10%.

So that's why.

And if you get the opportunity to fall by 10%, let's say I

saw 5% of the Bank Nifty has fallen by 5%.

If it has fallen by 10%, I will buy it immediately.

If it has to fall more, I will buy more.

So there can be multiple possibilities.

If you have cash, then what can you do? You can buy a

little more amount.

Like percentage wise.

Otherwise, make your own rule that I have to invest 1000

rupees a day.

And today all four have increased, so I have saved 1000

rupees.

If they have fallen tomorrow, then tomorrow we will put

2000 rupees.

We will put money for 2 days.

Let's put 20 rupees a month.

So you keep investing and the investment of 1000 rupees

does not work.

If someone has to do 20,000, if someone has to do 2000,

then how much is he doing? 100 rupees a day.

So you choose

ETFs that are very cheap.

For example, I am giving an example of how much is the MAH

tech? It is an ETF of 14 rupees.

But in 14 rupees, there is an investment in the top 30

companies of China.

So you can buy in its multiples.

But now we have to discuss one thing.

I gave the homework in the last video when we buy.

So we have to pay attention to what are the taxes and

charges in it.

So now we will calculate it in the next video.

So you should wait for that video.

ETF investing is a wonderful thing.

Keep doing it long term.

A lot of money is made from compounding.

So now we are going to talk about compounding too.

So we are going to learn a lot.

So in today's video, we have understood ETF investing in

detail.

If you still have some questions, you can ask in the

comments.

And you can share this video so that this valuable video

reaches the maximum people.

And if you are new in the market and you want to start

investing, then you can open your Demat account for free.

You will get the link in the description and pinned comment.

And in fact, the companies that are referring to you, how

much money they are giving you, you will get their details

in the description and pinned comment.

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Till then you were self made and Jai

Hind. Jai Hind.