Basic personal finance math

One thing that discourages most people from starting their personal finance journeys is that they get intimidated by all the numbers. That's a travesty because most of the math you need to know about personal finance is straightforward. In this video, Karthik, explains how to measure mutual fund returns and the time value of money. By the end of this video, you will be relieved that this isn't all that complicated and be a little more confident.

[prathapkrissh]

The CAGR calculation formula is incorrect, please correct it to [(Ending value - Starting value)^(365/number of days)]-1. The values are swapped while subsitution in ending value and starting value for CAGR. For the stock B example in CAGR, which has a time period of 791 days, 364 days is substituted wrongly. Please consider correcting these in the video

[kvinayagamoorthy]

The need to do complex math is RARELY the reason. We have strong biases. We still think Real estate and Gold are better avenues than the stock market and mutual funds.

The land value of my house in Bangalore grew from 7 lakhs in 2004 to 90 lakhs in 2014. But it still stays the same in 2023. I cannot convince any of my relatives that real estate as an investment avenue is really bad for most of us. People only think of the boom period of real estate and think that is the best to grow wealth.

[shashwatapal]

The CAGR formula shown in the video is incorrect @4:17, 1 should come outside the index, i.e. [(Ending value/Beginning value)^(365/ number of days)-1] . The CAGR will come to around 16.047%. Its just a small correction
Also the starting and ending value are swapped in the formula. Consider rectifying in the video!
Good initiative Zerodha Varsity

[bubblebath]

Brilliant video as explained something so complicated in such a simple way .Simple and to the point ....keep up the good work, Thanks a ton man

[kartikeydwivedi]

Got to know about CAGR today only.... Simple and best explanation 👌

[harsh]

CAGR Correct Formula

CAGR=[(Ending Value/Beginning value)^(365/No of Days)]-1
and then multiply the result by 100 to convert it in percentage.

[amithathakur]

Can't thank u enough for this effort, Karthik 🎉

[leenasaikia]

Amazing videos… crisp and simple…keep sharing 👍🏽

[nitishnagar]

I started investing since college from my pocket money and continued!😊

[User]

Great initiative Zerodha and Karthick sir.

[dhardibya]

That's a really great initiative towards financial education

[digvijaydiggi]

I thought the second video will come after 2024 general election, , thank you for your kind gesture 🙌

[mukulanand]

We can also calculate cagr via this too

(Final invested amount/initial invested amount) 1/n -1
Where n= tenure

[guruchillalg]

Good basic learning video sir, thanks a lot❤

[Spark-fbgo]

I started my savings journey at an early age of 14 year, today at 21 i have a sum of 6.4 lakhs. I want to make it 30-40 lakhs by 28.

[darkmatter]

4:03 - 2nd portfolio has higher CAGR than first one - second one has CAGR of 20.061 while first one has CAGR of 16.04 percent

[sumittembhare]

Great Initiative !
Incorrect values CAGR formula in first example

[elviesmascarenhas]

Currency devaluation is the biggest issue today, whether Yuan or Rupee or Dollar will make it who knows, mostly Yuan will make it....

[silentwraith]

4:07 did you put the numbers in correctly? Ending value is on top and starting value at bottom?

[vishal-uynl]

Sir please increase ur frequency...😂☺️....keep that 1 week only.... please...☺️🤗....it is really useful to us...