Markets
They are very down nowadays
If I talk about today
Today, Nifty has gone down by around 4%
We don't know what will happen by this evening
But now a lot of people say that you should start buying
But now a lot of people know that they should buy, when the share market goes down
We should buy
But which share should I buy?
Because it is possible that today nifty goes down by 4%
And it is possible that the share that I buy goes down by 8 or 9%
So what should you buy in this condition
So in this video, I will tell you about one such instrument
If you buy that when you don't understand what you should buy
They always give you very good returns
I, Jagdeep Singh, welcome you to the Groww channel
Today we are going to talk about such an instrument
If you blindly go and buy it, it has given good returns in the past
We don't know about the future and neither do I want to predict what kind of returns it can give in the future
But it has always given good returns
If you would have invested for a long term here
First I will show a you a very interesting thing, then we will start today's video
As you can see on my screen, this is the past 6 months chart of Nifty 50
And this tells you
That 6 months ago, Nifty 50 used to trade at around 12,250
Today it has fallen down and started trading at 10,500
So should I never invest in this
And the biggest question in the minds of every investor
What is Nifty 50, how does it work?
But after this, I will show you another interesting graph
So this is the second graph
The first graph I showed you was of the past 6 months of Nifty 50
Where Nifty had gone down a lot
But after seeing this you must be very shocked
That this graph, if I talk since 2002, has always gone up
This is the graph of Nifty 50
So this graph tells us that if we talk about Nifty 50 in the long term
It always goes up
So does this mean that I should invest in Nifty 50 any time?
Because if I talk long term then the index always goes up
So the biggest question here is what is index
And if I have to invest in Nifty 50 or any other index
How can I invest?
Now I told you that nifty always gives good returns in the long run
But now you must want to know
Whether the index, in every place, in every country
The index that moves forward, does that always give good returns
So I will show you very interesting data on one screen
As you can see on my screen, I have shown three index
And I have shown their lifetime, about how they have moved forward
First, if I talk about Nifty 50, then Nifty 50 started at 1000
And now it is trading at 10,480
So if we look at it long term, how good were its returns
The second index, Dow jones industrial average
This is the US index and you can see how the growth has been
Since it started
And after that another interesting index MSCI world index
The MSCI index tracks the stock market of the whole world
And tells us how the world stock market performs
So even if you look here, the index of the stock market
This has always gone up
If I remove two years from here
The first year of 2001 and 2001
When the tax bubble was burst and the second of 2008-09
When there was a world economy crisis and the market had gone down
That started from the US
So if we look at long term, the index always goes up
So if you think that the index always goes up, why don't I invest here itself and when the market goes down
If I talk about 2008 or 2001
They always give you a very good buying opportunity
If you invest there
You percentage of return increases a lot
When the market goes down and you invest there at that time
So is this a good time to invest in the index
Because the market has gone down again
If we look at long term
So it is possible that if the market comes back to the right track
If the down turn that's going on in the world right now, comes back up again
It is possible that you can get very good returns in the coming years
So index can be a good option to invest in for those people
Who don't want to do a lot of research
But it is their wish to invest in the stock market
And it is possible that they make good returns in the coming years
Now I will talk about what Nifty 50 is and what these index are
If I talk about Nifty 50 then it is a benchmark index
In which there are 50 companies, which means that this index
Is made up of 50 companies combined
And whenever these companies go up, then this index goes up
And when these companies go down, then this index goes down
But the biggest question here is that
If I buy a company that can go up or down
But if I look at Nifty's graph for the past 10 or 15 years
Then Nifty always goes up
So is it safe to always invest in Nifty
And how are the 50 companies in Nifty decided
So the index of Nifty 50 is made by the top 50 companies whose market capitalisation is the most
And whenever these companies perform well, the index goes up
So if I talk about India there is another index that tracks India's economic activity
Which is called Sensex
If I talk about Sensex, then it is like Nifty itself
But in the case of Sensex, there are only 30 companies, but Nifty has 50 companies
Now I have told you that Nifty in the long run always goes up
Like the past data tells us
To predict the future is always impossible
But if we talk about whether India's economy will grow in the coming time
If its GDP will grow
And if you believe in this, then the index in the coming time will always go up
Because it tracks the economic activity in India
How India's equity market is performing as a whole
Now the question is how can I invest in Nifty
Now I have understood that Nifty is going to perform well in the coming time
And in the past Nifty has come down by 10-15%
So it is possible that there can be a good opportunity if you invest in Nifty or Sensex right now
Then in the coming time you can get good returns
But now the question comes of how you can invest in this
If I go to the website of any broker
I don't get a direct opportunity to invest in Nifty or Sensex
Now I will tell you how you can invest in Nifty or sensex
So if I talk about Nifty or sensex, you can invest here in mainly two ways
First, through mutual funds
And second, through ETF
Now the question comes, what is ETF?
I will come to this, first I will tell you through mutual funds
How you can invest in nifty or sensex
As you know there are many kinds of mutual funds
Large cap, small cap, hybrid, debt
In the same way there is another category of mutual funds, which we call Index mutual funds
Index mutual funds are those mutual funds
That invest in such instruments
That tracks the performance of nifty or sensex
Which means that if you invest in those mutual funds
And nifty in the coming time goes up by 10%
Then that mutual funds give you around a 10% return
It can be a little lesser or higher
Because index mutual fund keeps a little of their money in the liquid form
Because if everyone at one time, invest their money in index fund
And if you go for withdrawal then that index mutual fund
Should have some money on the liquid form
So that if there is a withdrawal request there, they can give the money back
So index mutual fund provides you with such an opportunity
The time when the market goes down
And you don't understand which stock to invest in
Because you can't research
And you don't have the belief that even if you chose a good stock
And if tomorrow the market goes down that stock will go down more
You will have a higher loss
So in that case you can invest in index mutual fund
There the charges are slightly lower
And that gives you the same returns that nifty or sensex gives you
So in this case, when the market is down
It is possible that it is a good opportunity to invest in the market
If you think that nifty or sensex will go up in the coming time
Now we will talk about ETFs are ETF stands for Exchange Traded Funds
ETF is like a stock but there can be many other stocks in its composition
Now the question comes, how?
Now consider I am talking about an index Nifty 50
If you want to invest in that then there is one option that you invest in its mutual fund
And the second option is you invest in the ETF of nifty 50
Nifty 50's ETF is such an ETF
Which tracks the performance of nifty 50
Which means that if you invest here, it gives you the same returns as nifty 50
If nifty goes down 10% then that ETF also goes down by 10%
But if I talk about the next 10 years and the index goes up by 20 or 30%
That ETF will also give you a 20-30% return
Now the biggest question is what is the difference between index fund and ETF
So index operates like mutual funds and they are operated by AMCs
And if you want to invest in that, you have to invest through AMCs
If you want to invest in any stock, how do you do it?
You open your account with a broker
You search for the stock there and invest your money with a stock
So ETF invests in index
But it operates in the exchange
Which means that it operates like a share in any exchange
If you want to invest in any ETF
You should have a brokerage account
You should have a demat account
And by going to any broker you can search
The index where you want to invest
You can invest in that ETF
As I told you index mutual funds and ETFs can be very good investment options for you
If you feel that you should invest in nifty 50 or sensex
And I brought this video for you
Because people ask that if I have to invest for the long term
Which stock should I invest in?
So if you invest in any stock, I will give you only one suggestion
Without doing complete research, without reading the fundamentals of the company
Without doing its valuation, if you invest there, then you take a very big risk
In that case if you think that India in the coming time will go up
Because the base of the index is 50 companies
And if there is good economic activity in India
If India's GDP moves forward then out of those 50 companies
Maximum companies will always perform well
But if you choose one company, it will become very difficult for you
In which company should you invest
In that case if you have a lot of trust in the economy
You think that in the coming time it will revive
The small down turn happening right now will go back up in the coming time
In that case index mutual fund and ETF can be very good investment options for you
That is why we got this video at this time when the market is not performing well
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We have no given any buying or selling recommendation in this video
Whatever we have spoken has been for educational purposes
We don't give the recommendation of the buying or selling of any stock or any index
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