Harry Potter Finance - Don’t Put All Money In Fixed Deposit !

Why is it so hard to convince ourselves to avoid investing a bulk of our networth in Fixed Deposits? 🤔

This is because of something called ‘Risk Aversion’.

Most of us cannot fathom the fact that investing in the stock market 📉 entails a probability of losing a part of our principal investment. Even though the probability tends towards zero over a 7-8 year time horizon, we are unwilling to invest our hard earned money unless it gives guaranteed returns. 💰

But we don’t realise that putting all our money in 100% assured zero risk investments such as Fixed Deposits is a sure shot way of guaranteeing negative real returns after considering tax and inflation. Even though we see the absolute number increasing year over year, the purchasing power of our slow growing money decreases. It will take us significantly longer to achieve our financial goals if we ever reach them at all. 🙌🏻

Hence, it is important to allocate a certain portion of our portfolio towards riskier asset classes such as Equity, to ensure real growth in the value of our overall portfolio over a long term period. Even though there is a probability of facing short term losses, it is imperative to build the financial discipline to stomach those losses and understand that’s it’s part of the process which would eventually lead to real growth in the value of our wealth over a long term period. Taking no risk at all is also a kind of risk which we don’t realise until it’s too late. 🤗

➡️ ‘Injection’ Analogy Source - ET Money
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[divyanshsharma]

"Don't put all eggs in one basket"
"Don't just Create one horcrux"

[EastIndianSongs]

Thats a good one sharan, I have been saying this to my friends to invest in FDs as well as in markets to hedge against the risk of recession, but people nowadays are so much influenced with the market influencers that they will pit nearly 80% of their savings in market and will keep the rest in savings rather that putting it in a FFD or a short term FD.

[PrabyComm]

This was very creative man, I liked the "you know who" reference 👏👏

[sahidakhtarahmed]

Dumbledore's expression! Spot on!

[shawmavamukherjee]

Love the background music's addition. haha

[shiva_prasad.m.g]

Man make these type of videos it's easy to understand and easy to explain others. 😇

[jaymore]

Alag level bhai....pro 👍👍👍...finance wid sharan !!!!

[satyammishra]

This man is gem while creating content...knowledge with fun.

[keynesmattew]

The creativity you put to display these ideas 💡 are so good that it keeps the viewer hooked .

[imranabbas]

Best one so far! Haha. Keep going BRO!

[jaimalkani]

I really enjoyed this video 📹 very unique idea of teaching thing's keep up the good work Sharan! Sometimes you remind of Goku from Dragon Ball Z specially at the end of the videos

[avb]

Love the way you make such great efforts to make people financially literate 💚

[highway]

Leee you just nailed it Sharan, keep doing like this new innovative things.

[giryraj]

Dude is creative and knowledgeful..best contents always..

[TEJATechNews]

You creativity is unstoppable keep rocking bro

[kuruvillathomas]

That was epic 😂. U just reached the multiverse level..

[hanudeepkumar]

That "Merlin's beard!" got me.😆😆

[himansbhad]

Sharan Sir...I like the way you explain Finance in very easy and funny way 😄 😆

[prudhvireddy]

Congratulations on ua national award mr sharan !!! Appreciative

[kungfu-kbjr]

Man shorts are going to another level🔥🔥