2 Views· 09/01/22
Where to Invest First ₹5000? STOCKS vs MUTUAL FUNDS
Where to Invest First ₹5000? STOCKS vs MUTUAL FUNDS for Beginners
Open new Demat to buy Shares: (Free Demat): https://tinyurl.com/y8k2v9ht
Follow me on Twitter: https://twitter.com/invest_mindset
On Instagram: https://www.instagram.com/investmindset
Other Important videos mentioned in this video:
1. One up on Wall street by Peter Lynch Summary:
2. Beating the Street Book Summary:
3. Regular Income from Stocks through Dividends:
4. MAGIC of SIP Investment:
HOW to Invest in YOUR 20s:
Index Fund Investing for Beginners:
When any beginner invests in stock market who want to know the basics of stock market for beginners, the first thing that comes to mind is which is the best way to invest? Direct stocks or through mutual funds? Which option is better for normal investor? So in this video, I talk about Stocks vs mutual funds for beginner investors on how you can invest your first 1000, 5000 or ₹1 lakh in the Indian stock market.
What's the difference between stocks and mutual funds? Stocks are an investment in a single company, while mutual funds hold many investments — meaning potentially hundreds of stocks — in a single fund.
You can read more about each strategy below, but we'll give a spoiler for those who don't want to dig into the details: Many investors will prefer to form the bulk of their portfolios with mutual funds (specifically, low-cost index funds and exchange-traded funds, also known as ETFs, which we explain below). Once you're set there, you might choose dedicate 5% or 10% of your portfolio to stock trading for a little thrill.
Mutual funds Pros:
Easy diversification, as each fund owns small pieces of many investments.
Professional management available via actively managed funds.
Investors can typically avoid trade costs.
Many index funds and ETFs have low ongoing fees.
Convenient and less time-intensive for the investor.
Annual expense ratios.
Many funds have investment minimums of $1,000 or more.
Typically trade only once per day, after the market closes. However, ETFs trade on an exchange like stocks.
Can be less tax-efficient.
Stock mutual funds (also known as equity mutual funds) are like a middleman between you and stocks: They pool investor money and invest it in a number of different companies. Rather than picking and choosing individual stocks yourself to build a portfolio, you can buy many stocks in a single transaction through a mutual fund.
That makes mutual funds ideal for investors who don’t want to spend a lot of time researching and managing a portfolio of individual stocks — a mutual fund does that work for you. A simple investment portfolio might contain just a few mutual funds, which could be a combination of actively managed funds, index funds or ETFs.
Individual stocks or Direct Stock investing Pros
No annual or ongoing fees.
Complete control over the companies you choose to invest in.
Tax-efficient, as you can control capital gains by timing when you buy or sell.
Carry more risk than mutual funds.
Must hold many individual stocks to adequately diversify.
Time-intensive, as investors must research and follow each individual stock in their portfolio.
You'll generally pay a commission to buy or sell but that's reduced now with the help of FYERS.
#stocks #mutualfunds #investment #FYERS #FYERSDirect #FYERSBROKERS
01:50 Complete Control
03:08 Real Example of creating wealth with stocks
03:55 Dividend Income
04:22 Minimum Fees
07:35 Recap of Direct Stock Investing
07:53 Portfolio Diversification
09:07 SIP - Time Diversification
10:10 Conclusion - (Important)
If you enjoyed the video then don't forget to leave a like and subscribe so YouTube can show you more videos like this in the future.
Thanks for giving your valuable time and...