Index Funds vs Mutual Funds | Common Sense Investing in India

Index Funds vs Mutual Fund | Common Sense Investing Book Summary Hindi

Many people ask me whether they should invest in mutual funds or index funds? Or what is mutual funds for beginners? And what is index funds for beginners? What is the best place to set up SIP, systematic investment plan? Which is better to achieve financial freedom in India. In today's video, we talk about how the smartest people invest their money in stock market (Share market). For example, how Warren Buffett advised where and how the money should be invested after his death. This came from the book - The Little Book of Common Sense Investing Summary and top lessons (Book written by John “Jack” Bogle).

Let's first understand the difference between the index fund and a mutual fund.

The biggest difference between index funds and mutual funds is that index funds invest in a specific list of securities (such as stocks of Sensex, Nifty 50 - listed companies only), while active mutual funds invest in a changing list of securities, chosen by an investment manager.

Over a long-enough period, investors might have a better shot at achieving higher returns with an index fund. Exploring these differences in-depth reveals why.

Key areas of the book:
Starting early and investing regularly is key to enjoying the benefits of long-term compounding.
Understanding investing involves risks, but not investing ensures our financial failure.
Index investing eliminates unsystematic risks, such as concentration, security selection, manager selection, and investment style risks.
Minimizing cost related to investments (including taxes) are essential in the long run.
Beating and timing the market may not work for all.
Respect the uncertainties involved in the future with intelligent asset allocation.

This video has been created to make understand mutual funds and Index funds for beginners along with SIP and you will also learn how to invest in mutual funds and which is better when compared to index funds and get your answer to what is mutual fund vs index funds

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[GreatInfoHindi-cekt]

Sir mane aapki video se bahut kuch sikha hun.... Aaj se maine 1000 se investing suru kar di ha thanks sir👏👏👏👏

[Vikram]

4:55 is the most important point in this video. Great one dude, god bless you. SIP in index funds has always give higher returns than any of the best performing MF. Also just like stock, you don't know which MF will perform best in next X years. So Index funds is the only solution for better returns every year.

[alfajalan]

My Dear Brother,

Index Fund me 20 Lakh Redeem karne par kitna Tax lagega

Or ITR kaise bhare

Is par ek videos bana do

[readersmind]

I have now 20 lakh portfolio coz of INVEST MINDSET... AND My Target for 10 year to become Financial free, Thanks 👍

[jatinbatra]

Apki videos bhut motivation and learning hoti hai 💥💥💥💥🙏🇮🇳🇮🇳

[heypritam]

Today I'm late to watch your video sir😔 anyway aapke video se Sach mai bahut clear & true knowledge milta hai♥️

[PranjalPandey-lvdg]

Hey sir, i just started investing, and my question is, in all industries there are many stocks we can't do analysis on all of them so which strategy should I use for pickup a stock for analysis, if you read this please 🥺

[HavishG]

Do you thing Investing in real estate (rental property) good or bad.
In India with 3% rental yield, we would have to pay 70% as down payment to Afford emi with first rent. We can also Invest in REITs for this.

I'm 15, and continuously learning about finance and investing. I have watched a lot of channels on finance but this is the best among them. As you tell the calculation adjusted with Indian number (in real estate, etc). Even your book summary are great.

Just a request, Could you make a video on real estate investing
and on the numbers and ratios to see while choosing a stock (all videos tell about the importance of these value but don't tell which value to see while picking the stock)

[rickygupta]

I didn't completely agree with you on the same .
First Reason - India is a developing market while US is a developed market, it means in India opportunities are much higher than any developed country
Second Reason - Most of the active mutual fund charge expense ratio in between 0.3 to 0.8% because they can beat the index by huge margin of min 4-5 % . So according to common sense I can pay them few charges in order to generate better returns .
Last Reason - Charlie Mungar and Warren Buffett they both didn't invest in index fund but they advise ordinary people like us to invest in index because it's a safe bet

[arunayyappan]

Invest mindset vedios are valuable... Thanks for information ❤❤ brother

[bikashkumar-czkx]

Please do another video on compounding on both index fund and mutual fund..

[sanchyansengupta]

Intersting video, Sirji... I'll be waiting for the video how to get dividend from index fund...🔥♥️🔥♥️🔥♥️

[harshadbhude]

your Audiobooks is very good for investment'

[parbatkarangiya]

Thank you Sir
Aapke Video's se bahut sikhne ko milta he
Thanks again Sir

[jaseemakram]

Sir how to get dividend payout in index funds .

[mdhegde]

Hi, Bro, one suggestion. Put some keypoints of video in thumbnails. So that we can recall any video again in future.
Your videos contains many such points which I can relate after so many days.

[Daughterofshiva]

Can you please tell me that after investing in mutual funds will get dividends or not? And when ever in future if we sell them do we need to give income tax or not on that and also in dividends?

[milindgabhane]

Dear sir,
I am regular viewer of your channel and I watched your entire video on index mutual by the my view index fund is useless because index fund give you only you 12% return on long term investing on the other hand any small cap has give return between 15% to 20% on long-term so I think anyone who has long term horizone has small cap fund is better than index fund.

[CartoonAllYT]

Thanks for advance for stock market and mutual funds investment for you thanks For bro ❤️

[babu]

Bro make detail video on index fund vs mutual fund we want to know which one is best for us to invest for a longer time period 😊