Where to Invest First ₹5000? STOCKS vs MUTUAL FUNDS

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Where to Invest First ₹5000? STOCKS vs MUTUAL FUNDS for Beginners
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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.

Cons
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
Highly liquid.
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.

Cons
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

Timestamps:
00:00 Intro
01:50 Complete Control
03:08 Real Example of creating wealth with stocks
03:55 Dividend Income
04:22 Minimum Fees
06:18 FYERS
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...
Goodbye :)
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If you learned something, then don't forget to SHARE.

InvestMindset
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I want to invest roughly $700, 000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.

NicholasBall
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Aap sbhi ko financial freedom dila ke rahoge sir 🙏🙏🙏

manishrana
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Sir I am just 15yrs old
And I am really Thankful to you for guiding me on the right path.
I would be very happy to to take your paid services

ReadWithNilay
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Agreed! This is why I force this info into all my undergrad classes I teach. Too important!!

NolanGouveia
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Can you do next video on how to read financial statements of a company? That would be helpful for everybody

johnsjones
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This man is incredible !!!
We will become millionaire soon...

saimestry
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I am really surprised by the amount of knowledge this man have. You are brilliant sir..
I am always excited for your next video, bcz i know that you will come up with something which will be a step towards financial freedom and financial knowledge. Thank You for making these videos . I appreciate your hardwork dedication and passion towards this domain.

tinkuyadav
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But investing in a company that you already know is not always optimal. You only have the surface knowledge and know nothing about the plans of inner management. For a fact, more people lost their savings in a company that they knew or worked with. Sir Benjamin Graham also made this point in his book "The intelligent investor "

akelakela
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Bro I earned 85%return in 6 month only with 11 company stocks

emperor
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Hello Brother Please make a list of 50 companies that probably will grow in the long term investment and companies should be indian please make it for me i watch your all videos and keep it up . One more last thing " how to open your own company " make video on this topic ❤️❤️❤️❤️❤️❤️❤️👍

rsingh
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This was my first to this channel
Its really fantastic 👍🔥
We can really understand in a simple way
Superb work

suhaskn
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Sir you make video on this topic : how many stocks and mutual to keep in our portfolio pls sir if possible make video and thanks for guiding us to invest I am 11 years old and I have been watching your videos from last 1 year

starkidgaming
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Aap k video se itna real knowledge milta hai... Jo ghum firke bapas har din aapke video pe akar dekhta hun dusro se Jo shikha bho sahi hai ki nhi... Love you sir♥️ God bless you

heypritam
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Very fast growing I love it
Bcz india is growing

jkvlogs
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Keep growing Ashutosh and become a successful man 😀🔥🔥

ashutiwari
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Please make your next video on how many stocks should one ideally have in one's portfolio.

Biswajitnag
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Super content with easy explanation with out wasting my time. Hats off to you sir 🙏🙏🙏

devkinandangautam
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i invest in mutual fund one large cap and one small cap and sometimes if i get excess sourse of income i buy stocks of market learders after some analysis and i never withdraw my money i just hold to get it compounded

nitishsajjan
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Bro make a video on finding the intrinsic value of a company with a real life stock example. 🙏

DeepakSuresh-texq