40 CRORES from a 10,000 INR SALARY? | Ankur Warikoo Hindi

Summary

The script offers a comprehensive guide to investment strategies, emphasizing the importance of starting early and the power of compounding. It introduces four investment options, from safe fixed deposits to high-risk stock market investments, with a focus on mutual funds as a balanced approach. The presenter advocates for disciplined, long-term investing, illustrating how different investment choices can significantly impact wealth accumulation over 10, 20, 30, and 40 years. The script concludes with the presenter's personal investment journey, highlighting the value of investing in oneself through education and experiences as the best return on investment.

Takeaways

• 💼 Start your investment journey with different risk options: safe, medium-risk, high-risk, and the best long-term option.
• 💰 Safe option: Fixed Deposit (FD) offers a stable return of 6-7% over time, but its value decreases with inflation over decades.
• 📊 Medium-risk option: Invest in the stock market through mutual funds, specifically in index funds like Nifty 50, Mid-Cap, and Small-Cap to diversify and balance risk.
• 📈 Long-term investment in Nifty 50 index funds offers an average return of 10.57%, outperforming FDs over time.
• ⚖️ Mid-Cap and Small-Cap funds carry higher risks but can provide better long-term returns compared to FDs, especially if started early.
• 🧠 Take calculated risks by investing in mutual funds, which are managed by experts, allowing you to focus on consistent, disciplined investing.
• ⏳ The power of compounding over 20, 30, and 40 years significantly increases the value of stock market investments compared to fixed deposits.
• 📉 Higher risk options, like Small-Cap funds, can generate larger returns, but investors should adjust their portfolio mix as they age.
• 📚 Best investment option: Invest in yourself—education, skills, and experiences offer returns no market can beat.
• 🚀 Investing in personal growth through courses, books, networking, and skills development has long-term benefits for income and career advancement.

Q & A

What are the four investment options mentioned in the script?

The four investment options mentioned are: 1) Safe Option, 2) Medium Risk Option, 3) High Risk Option, and 4) the author's recommended best option.

What is the suggested safe investment strategy in the script?

The suggested safe investment strategy is to invest the entire tank (savings) in a fixed deposit (FD), which is considered a safe option with low risk and potentially earning an average of 6-7% returns.

How does the script propose to increase investments over time?

The script proposes increasing investments over time by suggesting that each year, the savings (which is 30% of the tank) should be increased by 10%, and the remaining 70% should be used for expenses, leading to a gradual increase in the amount invested annually.

What is the expected corpus after 10 years if one invests in the suggested manner?

After 10 years, the expected corpus is expected to be around ₹77,000 per month of investment, growing to a total corpus of ₹7 crore, which is approximately ₹50 lakh in today's value.

What are the three index funds recommended in the script for investing in the stock market?

The three index funds recommended are: 1) Nifty 50 Index Fund, which invests in the top 50 companies listed on the National Stock Exchange. 2) Mid-cap Index Fund, which invests in mid-size companies, typically around 100 companies. 3) Small-cap Index Mutual Fund, which invests in smaller-sized companies, with an index around 250 companies.

Why are index funds preferred over individual stock picking according to the script?

Index funds are preferred because they are managed by fund managers who make decisions about which stocks to buy and sell, reducing the need for individual expertise. They also have lower costs and are more stable over time.

What is the difference between the risk levels of Nifty 50, Mid-cap, and Small-cap Index Funds as per the script?

Nifty 50 has the least risk as it involves top companies with consistent returns and less volatility. Mid-cap funds carry more risk due to the involvement of mid-size companies which can fluctuate more. Small-cap funds carry the maximum risk as they involve smaller companies which are more volatile and carry the risk of closure.

How does the script suggest allocating investments among Nifty 50, Mid-cap, and Small-cap Index Funds?

The script suggests a portfolio allocation of 70% in Nifty 50, 20% in Mid-cap, and 10% in Small-cap Index Funds, with an annual increase of 5% to account for inflation.

What is the importance of time in investment as emphasized in the script?

The script emphasizes that the longer the investment period, the more consistent returns can be expected, mitigating the risk of negative returns. It suggests that taking more time in the market is crucial for better returns.

How does the script advise on investing in oneself as part of the investment journey?

The script advises investing in one's own growth, learning, and experiences as the best investment. It suggests investing in online courses, freelancing, tools, and books to enhance skills and knowledge, which can provide returns that no market can beat.