"Best Investment Portfolio 2026: How I Split My Money in MF, Bonds & Govt Schemes" — Transcript

Full transcript

1. 0:01Friends, where should we invest our money in 2026?
2. 0:05Should I invest my money in fixed deposits, or should I invest it in mutual funds?
3. 0:11Some people invest their money in stocks, while others prefer to buy government bonds.
4. 0:16Some people buy corporate bonds, similar to government bonds.
5. 0:20Some people invest their money in government schemes.
6. 0:23They believe that government schemes are 100% safe—
7. 0:26for example, putting money into a PPF account, investing in NPS,
8. 0:30or, if there is a girl child in the family, investing in the Sukanya Samriddhi Yojana.
9. 0:35Some people purchase cryptocurrencies, while others invest in real estate.
10. 0:41Now, do you know what the problem is today?
11. 0:43Suppose one person says, “I save ₹10,000 per month,”
12. 0:48another says, “I save ₹20,000,” and someone else says, “I save ₹50,000 every month.”
13. 0:52The problem is that people often make mistakes with the money they save.
14. 0:56Let's say someone saves ₹10,000 every month.
15. 0:59They think, “I’ll definitely save ₹10,000 this month.”
16. 1:01People make the mistake of putting all that money into a fixed deposit.
17. 1:04For example, if they save ₹10,000 this month, they create an FD of ₹10,000.
18. 1:08The next month, if they save another ₹10,000 or ₹12,000, they create another FD.
19. 1:11In other words, they keep making fixed deposits with whatever money they save.
20. 1:14Or some people do the exact opposite.
21. 1:17Suppose they save ₹10,000 this month—
22. 1:19they immediately invest the entire ₹10,000 as a lump sum in a mutual fund.
23. 1:21The next month, they save another ₹10,000 and invest it in a mutual fund again.
24. 1:24In other words, whatever money they save is being invested only in mutual funds.
25. 1:27Now, some people who have a lot of money don't think of anything else.
26. 1:31They say, “Whatever money I have, I'll put all of it into real estate.”
27. 1:36They keep buying plots—this plot, that plot.
28. 1:38They invest something in commercial property
29. 1:39and something in residential property.
30. 1:41If they find a good property opportunity somewhere, they invest there.
31. 1:42Essentially, they keep playing the real estate game and nothing else.
32. 1:44But is this actually the right way to invest? The answer is no.
33. 1:48We should not invest in this manner.
34. 1:51Whatever money we invest should be properly diversified.
35. 1:55Now, moving forward, the question is: Where should we invest our money?
36. 2:01For the moment, let's put investing aside.
37. 2:05Your first goal should be to always have an emergency fund.
38. 2:11Once your emergency fund is ready, then you can start investing.
39. 2:16Your primary goal should be to build an emergency fund.
40. 2:20What is an emergency fund?
41. 2:22Suppose someone's salary is ₹20,000 per month.
42. 2:25Multiply that by three, which comes to ₹60,000.
43. 2:28Therefore, a person earning ₹20,000 per month should have an emergency fund of ₹60,000.
44. 2:34This is your emergency fund.
45. 2:36God forbid, if tomorrow you lose your job,
46. 2:38or if a medical emergency arises in your family,
47. 2:42or if you suddenly need money for any reason, then you will use this emergency fund.
48. 2:47First of all, suppose someone currently has zero savings.
49. 2:51In that case, the first step is to accumulate an amount equal to three times their salary.
50. 2:55After that, we can look at where to invest the money.
51. 2:59Let's say someone's salary is ₹20,000 per month.
52. 3:02We have already accumulated ₹60,000 as an emergency fund.
53. 3:04Now, where should we keep this emergency fund?
54. 3:07People often say that an emergency fund should be something
55. 3:11that you can access immediately with a single click and use whenever needed.
56. 3:13After all, emergencies can happen suddenly, and you may need money right away.
57. 3:18Therefore, it is commonly recommended to keep this money either in a savings account
58. 3:21or invested in liquid mutual funds.
59. 3:24Now, you can certainly keep it in a savings account.
60. 3:26In fact, ideally, a savings account is one of the best places for an emergency fund.
61. 3:28However, there is one issue.
62. 3:29Suppose you have ₹60,000 sitting in your savings account.
63. 3:31Then a friend asks to borrow some money, and you simply send it through Google Pay.
64. 3:33So, there is always a higher risk that the money may get spent on non-emergency purposes.
65. 3:36The ideal recommendation is to keep your emergency fund in a savings account.
66. 3:41But I would say that you should try to keep this money in a liquid fund.
67. 3:46Now, what exactly are liquid funds?
68. 3:48A liquid fund works like this: suppose you have invested ₹60,000 in a liquid fund.
69. 3:52The fund manager will invest this money
70. 3:56either in Treasury Bills, Commercial Papers, or Certificates of Deposit (CD).
71. 4:03What are Treasury Bills? When we lend money to the Government of India
72. 4:07for a period of less than one year, those instruments are called Treasury Bills (T-Bills).
73. 4:12On the other hand, when we invest in government bonds—
74. 4:16that is, when we lend money to the Government of India for more than one year—
75. 4:18those are called G-Secs, which stands for Government Securities,
76. 4:21or simply Government Bonds.
77. 4:23So, when we lend money to the Government of India for less than one year,
78. 4:26it is called a Treasury Bill.
79. 4:27Similarly, large corporations such as Reliance and Tata also borrow money.
80. 4:32When we lend money to these corporate companies for less than one year,
81. 4:35it is called a Commercial Paper.
82. 4:37Likewise, when we lend money to Indian banks for less than one year—
83. 4:40for example, to SBI, ICICI Bank, or HDFC Bank—
84. 4:45so, if you lend money to a bank for a period of less than one year,
85. 4:49that lending is represented through a Certificate of Deposit (CD).
86. 4:51So, lending to corporate companies for less than one year is called a Commercial Paper.
87. 4:57When we lend money to corporate companies for more than one year,
88. 5:01those instruments are known as Corporate Bonds.
89. 5:04So, this concept should now be clear.
90. 5:06Now, what is the advantage of liquid funds?
91. 5:08The benefit of keeping your emergency fund in a liquid fund
92. 5:13is that you can invest money whenever you want and withdraw it whenever you want.
93. 5:16The exit load is almost negligible.
94. 5:19For example, if you invest ₹1 lakh
95. 5:22and withdraw it after 7 days, the exit load is practically zero.
96. 5:26You can put money in whenever you like and take it out whenever you like.
97. 5:28Even if you withdraw before 7 days,
98. 5:31the charge on an investment of ₹1 lakh is usually only around ₹10, ₹15, or ₹20.
99. 5:33So, liquid funds are designed to be highly accessible.
100. 5:37Now, another question people ask is: “Why not simply invest my emergency fund
101. 5:40in a mutual fund? I can withdraw money from there whenever I want as well.”
102. 5:46You can do that, but there is a problem.
103. 5:47Suppose, as in our example, your emergency fund is ₹60,000.
104. 5:51Let's say you invest that entire ₹60,000 in a mutual fund,
105. 5:54thinking of it as your emergency fund.
106. 5:56There's no problem in that.
107. 5:57The issue is that the market sometimes goes up and sometimes goes down.
108. 6:00God forbid, if an emergency occurs at a time when the market is down—
109. 6:04for example, if your ₹60,000 investment has fallen significantly in value,
110. 6:08what is the benefit then?
111. 6:09In an emergency, you cannot afford to hold the investment until the market recovers,
112. 6:12you need the money immediately.
113. 6:13Do you understand?
114. 6:14The advantage of a liquid fund is that
115. 6:15it aims to provide relatively stable returns, around 7% to 7.5%.
116. 6:18Why? Because where is the money being invested?
117. 6:20It is either being invested in Treasury Bills—
118. 6:21after all, the Government's money is unlikely to default—
119. 6:23or it is being lent to corporate companies through short-term debt instruments.
120. 6:25The chances of these investments defaulting are almost negligible.
121. 6:26The fund is either lending money to banks. Banks are also not expected to default.
122. 6:28Therefore, a return of around 7-7.5% is generally expected from such investments.
123. 6:31That is why we invest our emergency fund in liquid funds.
124. 6:35Now, let me show you how you can invest money in a liquid fund.
125. 6:41I am explaining everything step by step and taking my time
126. 6:43so that you can understand all these concepts properly.
127. 6:45Here, I have used a screenshot from the Angel One as an example.
128. 6:48You can use any application you like.
129. 6:50I'm not providing any referral link in description.
130. 6:52I simply had to use one application to demonstrate the process.
131. 6:54This is not a paid promotion.
132. 6:55The same options are available on almost all investment platforms.
133. 6:58For example, suppose I open the application.
134. 7:00There will be an option called Asset Class.
135. 7:01In the Mutual Funds section, you will usually find filter options.
136. 7:04Click on those filters, and you will see the Asset Class option.
137. 7:06From there, go to Debt Mutual Funds.
138. 7:08As you can see, there are several different types of debt mutual funds.
139. 7:11I have even made a separate video
140. 7:13explaining all the different categories of debt mutual funds in detail.
141. 7:16Now, among these categories, there is one called Liquid Fund.
142. 7:19If you click on the Liquid Fund category,
143. 7:21and then you will see many different liquid funds available to choose from.
144. 7:23As you can see, the returns of almost all these
145. 7:25liquid funds over the last three years are around 7%.
146. 7:27The returns are nearly the same
147. 7:28because all these debt fund managers invest in similar instruments.
148. 7:33They either invest in Treasury Bills, Certificates of Deposit, or Commercial Papers.
149. 7:38These are essentially the main options available to them.
150. 7:39For example, if you want to invest in the Axis Liquid Fund, you can select it.
151. 7:42Once the Axis Liquid Fund page opens,
152. 7:43you can decide how much money you want to invest ₹500, ₹10,000, or any other amount.
153. 7:46You can either start an SIP (Systematic Investment Plan) or make a one-time investment.
154. 7:51The point I'm trying to make is that it does not matter much which liquid fund you choose,
155. 7:53it does not matter much which liquid fund you choose,
156. 7:55because they are all more or less similar.
157. 7:56The key takeaway is that
158. 7:58we should keep our emergency fund in a liquid fund.
159. 8:04Now, there is one more thing I want to discuss before we start talking about investing.
160. 8:07In fact, we are already learning a lot of important concepts.
161. 8:09The first thing we understood is that whatever money we have,
162. 8:14we should first build an emergency fund equal to three times our salary.
163. 8:19The second thing is that before you start investing—
164. 8:23suppose you plan to save ₹10,000 or ₹20,000 every month.
165. 8:28Before allocating that money to investments,
166. 8:30there is one expense that you must account for in your budget.
167. 8:34Every year, you will have to pay premiums for health insurance and a term insurance plan.
168. 8:39Please consider this a sincere request from me.
169. 8:41I am not saying that you need to buy them immediately.
170. 8:44Neither I am giving you any link in the description box
171. 8:46and asking you to purchase through my referral link. No, nothing like that.
172. 8:49I am simply saying this for your benefit.
173. 8:51If you do not plan to buy insurance right now
174. 8:52and are thinking about it one or two years later, that's fine.
175. 8:54Whenever you plan to get it, just keep it in mind.
176. 8:56Of course, if you can get it now, that's even better.
177. 8:59I am not going to spend too much time discussing it in this video.
178. 9:01I have already explained both health insurance and term insurance
179. 9:04in great detail in separate videos.
180. 9:07Again, I am not providing any paid or referral links asking you to purchase through me.
181. 9:10I am only sharing links to those educational videos.
182. 9:15After watching this video, you should definitely watch those as well.
183. 9:18Even if you are not planning to buy insurance immediately
184. 9:19and are considering it a year later, at least gain the knowledge
185. 9:22and understand what health insurance and term insurance actually are.
186. 9:24There is one more thing: never get trapped by ULIPs, Endowment Plans,
187. 9:29Guaranteed Return Plans, or similar products
188. 9:30that promise, “Invest this much and you will get this much in return,”.
189. 9:33Please stay away from such plans.
190. 9:35Insurance should be purchased only for protection.
191. 9:39Please do not mix insurance with investment.
192. 9:41I will not spend much more time on this topic,
193. 9:44but now I am going to start discussing investing.
194. 9:46Before investing, however, two things should always be clear:
195. 9:49First, you should have an emergency fund. Second, you should have insurance coverage.
196. 9:53Once these are in place, we can look at how to invest the money that we save every month.
197. 10:00Now, let's start with the very basics.
198. 10:02The very first rule is "100 minus your age."
199. 10:06Now we are starting with investing, right?
200. 10:08We took a little extra time to cover the basics, but that's okay.
201. 10:10What does "100 minus your age" mean?
202. 10:12Suppose I am 30 years old today.
203. 10:15Then: 100 − 30 = 70
204. 10:19What does that mean? It means that I can invest 70% of my money in the market.
205. 10:26I can invest this portion in mutual funds, stocks, or other market-linked investments.
206. 10:32The remaining 30% of my money should be invested in debt funds,
207. 10:36such as fixed deposits or government schemes.
208. 10:38In other words, I would invest 30% of my money in relatively safe investments
209. 10:42and 70% in the market. With that 70%, I can afford to take some risk.
210. 10:47Why? The reason behind the "100 minus your age" concept is that,
211. 10:51at 30 years old, I am still young
212. 10:55and have a longer investment horizon. So, I can take more risk.
213. 10:57Therefore, I can invest 70% of my money in equities, the stock market.
214. 11:02Do you get the idea?
215. 11:03Now, the question is: this is a well-known and widely used rule in finance,
216. 11:09but should we follow it blindly?
217. 11:12The answer to this is ‘no’ as well.
218. 11:13It all depends on a person's risk appetite—
219. 11:16how much of their money they are willing to invest in the market
220. 11:20and how much they want to keep in FDs, government bonds, corporate bonds,
221. 11:27government schemes, or other relatively safer investments.
222. 11:29Let me explain with an example. Suppose there are two people, A and B.
223. 11:37Both graduated from the same college and the same class.
224. 11:40They are now working at the same company and earning the same salary of ₹50,000.
225. 11:43In other words, both of them are standing at exactly the same position in life.
226. 11:46However, A comes from a very strong financial background.
227. 11:49A's father has a government job in a high-ranking position,
228. 11:53and A's mother also has a government job in a good position.
229. 11:55Even after both of them retire,
230. 11:59suppose they will continue to receive a combined pension of around ₹1–1.5 lakh per month.
231. 12:01On the other hand, B's parents have seen a lot of poverty.
232. 12:05They struggled greatly to educate B,
233. 12:07and B managed to get this job only after considerable hardship.
234. 12:08Now, the entire family depends on B's income.
235. 12:10B has no financial backup, no significant property, and no safety net behind him.
236. 12:14In this situation, A says, "I am ready to invest even 90% of my money in the market.
237. 12:18Even if my investments lose value, it doesn't matter much
238. 12:20because I have plenty of financial support behind me." Got it?
239. 12:23But can B take the risk of putting 90% of his money in the market? He can't.
240. 12:28Do you get the point? So, the risk apetite also depend on one's situation and needs.
241. 12:32You also have to consider whether an entire family is dependent on that person.
242. 12:35In that case, can they really afford to take significant risks with their money?
243. 12:37Got the point? So, everyone has a different risk appetite.
244. 12:42That's why I would not say that you should blindly apply the "100 minus your age" formula.
245. 12:46Got the point?
246. 12:47You can adjust it according to your own situation.
247. 12:48If someone's risk appetite is very low
248. 12:51and they say, "No, I am a conservative investor.
249. 12:54I am not comfortable taking that much risk," then that's perfectly fine.
250. 12:56Such a person may choose to invest only 40% of their money in equities.
251. 12:58There is nothing wrong with that.
252. 12:59On the other hand, if you are comfortable taking more risk,
253. 13:01you can invest 70% or even 80% of your money in equities. No problem with that either.
254. 13:04For the purpose of this video, I am moving forward with an ideal scenario.
255. 13:07I am assuming that we will invest 60% of our money in mutual funds.
256. 13:13Notice that I am not recommending stocks. The issue with stocks is that
257. 13:18when you buy shares directly, you need very precise and detailed knowledge
258. 13:23about the company in which you are investing.
259. 13:25If someone has deep knowledge, and keeps up with financial news and markets every day,
260. 13:28then they may choose to invest directly in stocks.
261. 13:30But personally, I do not think that most people can do that effectively.
262. 13:33If someone is busy with their job or other work,
263. 13:34they usually won't have enough time to continuously monitor companies and the market.
264. 13:36As a result, it becomes difficult to track investments properly.
265. 13:37Of course, the final decision is entirely yours.
266. 13:40But instead of stocks, I would suggest that we invest our money in mutual funds.
267. 13:44And how much money should we invest? We will invest 60% of our money in mutual funds.
268. 13:49Now the question is: where within mutual funds should we invest?
269. 13:51Divide this 60% into four equal parts.
270. 13:55We will invest 15% in Large-Cap Funds.
271. 13:58Now, what are Large-Cap Funds? Let me explain that first.
272. 14:03As I mentioned, 15% of the money will be invested in Large-Cap Funds,
273. 14:0615% in Flexi-Cap Funds, 15% in Mid-Cap Funds, and 15% in Index Funds.
274. 14:14Suppose we invest money in a Large-Cap Fund.
275. 14:19The fund manager of that fund will invest our money in India's top 100 companies.
276. 14:27Now, it is not necessary that the fund manager invests in all 100 companies.
277. 14:29Out of those top 100 companies, the manager may select 20 companies.
278. 14:32In other words, from India's top 100 companies,
279. 14:34the fund manager chooses a group of companies based on their own analysis and judgment.
280. 14:37The manager may select 10, 15, 20, or even 50 companies.
281. 14:41He'll select a group of companies among the top 100 companies.
282. 14:44Then he'll invest the fund's money in those selected companies.
283. 14:47What are the advantages and disadvantages of large-cap funds?
284. 14:49The main advantage is that they generally provide steady and stable growth over time.
285. 14:53For example, you might earn returns of around 7%, 7.5%, or 6.5%.
286. 14:57Why? Well, these funds invest in large, established companies such as Reliance and Tata.
287. 15:00These companies have already become very large businesses.
288. 15:02It would be unrealistic to expect them to double in value within a year.
289. 15:06Since they are already so big,
290. 15:07you shouldn't expect 100% returns overnight.
291. 15:12Large companies usually offer lower returns, but those returns tend to be more stable.
292. 15:17Around 6.5% to 7%—perhaps 1% or 2% higher than a fixed deposit.
293. 15:21Another advantage is that they are unlikely to collapse completely.
294. 15:24You can't just wake up one morning and find that your entire investment has vanished.
295. 15:26It's not realistic to say that Reliance has suddenly gone bankrupt overnight,
296. 15:30or that Tata, HDFC Bank, or ICICI Bank has completely disappeared.
297. 15:34Is it possible? Not really.
298. 15:36Their prices may go down temporarily, but they are unlikely to collapse altogether.
299. 15:38These are called large-cap mutual funds,
300. 15:40where the fund manager invests your money in large, well-established companies.
301. 15:45Now let's talk about mid-cap funds.
302. 15:48Mid-cap companies are those
303. 15:50ranked between 101 and 250 in terms of market capitalization in India.
304. 15:53In other words, companies that fall
305. 15:55between ranks 101 and 250 are considered mid-cap companies.
306. 16:04What does the fund manager do?
307. 16:06Out of these 150 companies,
308. 16:08the fund manager may select 10, 20, or 30 companies
309. 16:11and create a portfolio using those stocks.
310. 16:12Your money is then invested in that portfolio.
311. 16:15Mid-cap companies are also relatively stable.
312. 16:17They are not tiny businesses.
313. 16:21However, they still have significant growth potential.
314. 16:23Some of them may eventually become large-cap companies.
315. 16:25If the companies selected by your fund manager
316. 16:28grow into large-cap companies in the future,
317. 16:30your investment could grow substantially.
318. 16:31However, these companies are not as established as large-cap companies.
319. 16:34There is a possibility that one or two companies may struggle or fail,
320. 16:35which could result in losses for investors.
321. 16:37Got the point?
322. 16:38That's what mid-cap funds are all about.
323. 16:40They offer much higher growth potential,
324. 16:43but your investment can also rise or fall significantly.
325. 16:45Got the point?
326. 16:46Apart from this, there are small-cap companies,
327. 16:49which are ranked below 250.
328. 16:52I haven't discussed them here because they are considerably riskier.
329. 16:55I wouldn't generally recommend such high-risk investments to everyone.
330. 16:59If someone has a very high risk appetite, they can certainly consider them.
331. 17:02But for now, we're taking a more balanced approach.
332. 17:04Okay?
333. 17:05So, we will allocate 15% to large-cap funds and 15% to mid-cap funds.
334. 17:09I haven't included a small-cap fund here.
335. 17:11Instead, I've included a flexi-cap fund.
336. 17:12What are Flexi-Cap Funds? In a Flexi-Cap Fund, the fund manager
337. 17:16has the flexibility to decide where to invest based on market conditions.
338. 17:20If they feel it's appropriate, they may invest 50% in large-cap companies,
339. 17:2320% in mid-cap companies, and 30% in small-cap companies.
340. 17:27Or they can do the opposite—50% in small caps, 30% in large caps, and 20% in mid caps.
341. 17:31It's entirely up to the fund manager's strategy.
342. 17:33That's why I've included a flexi-cap fund here.
343. 17:35Now, what's the advantage of small-cap companies?
344. 17:37Small-cap companies are relatively small businesses.
345. 17:39If one of these companies grows and eventually becomes a giant like Reliance,
346. 17:41your investment could potentially multiply many times over.
347. 17:43However, because these companies are smaller, they also carry higher risk.
348. 17:45Some may fail or perform poorly.
349. 17:47So, small-cap funds offer very high growth potential,
350. 17:51but they also come with very high risk.
351. 17:52Got the point?
352. 17:53Finally, we will keep some money in an index fund.
353. 17:55For example, you can choose a Nifty 50 Index Fund.
354. 17:58What is an index fund?
355. 17:59An index simply represents a group of companies.
356. 18:02For example, if you create a banking index consisting of the top 10 banks in India,
357. 18:07investing in that index means your money is spread across those top 10 banks.
358. 18:11Similarly, you can create an index for FMCG companies or any other sector.
359. 18:18That's how we'll allocate our investments.
360. 18:21Some popular large-cap funds include Nippon India Large Cap Fund,
361. 18:25ICICI Prudential Bluechip Fund, and Axis Large Cap Fund.
362. 18:30These are not recommendations.
363. 18:32I'm only mentioning them because they are well-known and popular funds.
364. 18:35You can invest in any of these or choose completely different funds.
365. 18:38One more important thing:
366. 18:39there are no affiliate links, sponsorships, or paid promotions in this video.
367. 18:42This is purely an educational video.
368. 18:44Whenever you invest, make sure you do so based on your own research, judgment,
369. 18:49or after consulting a qualified financial advisor.
370. 18:51This video is meant solely for educational purposes
371. 18:53and should not be considered investment advice.
372. 18:55Similarly, there are several popular flexi-cap funds available.
373. 18:57You can take a screenshot of the list shown on the screen.
374. 18:58Again, these are not recommendations—I'm simply mentioning some well-known funds.
375. 19:01As for index funds, one common option is the Nifty 50 Index Fund.
376. 19:04I've also included screenshots here for reference.
377. 19:07Let's say you want to invest in a particular fund—
378. 19:10for example, the Axis Large Cap Fund.
379. 19:13All you need to do is open any investment app
380. 19:15and search for the name of the fund you want to invest in.
381. 19:16The specific fund name isn't important here;
382. 19:19whichever fund you choose, simply search for it.
383. 19:21Once you open the fund page, you'll see an "Invest Now" option.
384. 19:23You can invest any amount you want—₹100, ₹500, ₹1,000, ₹2,000, ₹1 lakh, or more.
385. 19:28Then you'll have two investment options: SIP and Lump Sum (One-Time Investment).
386. 19:33An SIP means that if you invest ₹1,000,
387. 19:36then ₹1,000 will automatically be deducted from your bank account every month
388. 19:39and invested into that fund.
389. 19:41On the other hand, a lump sum investment is a one-time investment.
390. 19:42If you invest ₹1,000 as a lump sum, the money is invested only once
391. 19:44and no further amount is deducted automatically.
392. 19:45Think of it as making a one-time deposit,
393. 19:46similar to putting money into an FD all at once.
394. 19:47As you can see in this screenshot, the SIP option is selected,
395. 19:49which is why you can see the "Start SIP" button.
396. 19:51If you choose the Lump Sum option instead,
397. 19:52the button will change to "Start One-Time Investment."
398. 19:54That's how simple it is.
399. 19:55Using these options, you can easily start investing your money.
400. 19:58So, what have we understood so far?
401. 20:01In equity, let me write it here on the side —
402. 20:04we will invest 60% of our money in equity.
403. 20:08Now, what is the risk in equity?
404. 20:10The money that I am investing in companies —
405. 20:13equity basically means buying ownership or shares in a company.
406. 20:16I keep purchasing a stake in those companies.
407. 20:19If the company performs well in the future,
408. 20:21the value of my ownership keeps increasing and my money grows.
409. 20:25For example,
410. 20:26suppose I invested ₹1 lakh in a company and later that company doubled its growth.
411. 20:31Then my ₹1 lakh would become ₹2 lakh.
412. 20:34On the other hand, if the company’s value falls by half,
413. 20:36then my ₹1 lakh would become ₹50,000.
414. 20:38So essentially, equity means buying ownership in a company.
415. 20:41Now let’s talk about debt mutual funds.
416. 20:47We already decided that 60% of our money will go into equity mutual funds.
417. 20:52Now we will invest 15% of our money into debt mutual funds.
418. 20:57What does a debt mutual fund mean?
419. 20:59The process is still the same.
420. 21:01These are also mutual funds.
421. 21:05Earlier, those were equity mutual funds; these are debt mutual funds.
422. 21:10In equity mutual funds, we were buying ownership in companies.
423. 21:12In debt mutual funds, the process is similar in the sense that you invest your money,
424. 21:16and then a fund manager invests it in different places.
425. 21:21But this time, instead of buying ownership,
426. 21:23we are lending money to companies and governments.
427. 21:31These are called debt mutual funds.
428. 21:34You can compare them somewhat to a Fixed Deposit (FD).
429. 21:35In an FD, you are essentially lending money to the bank.
430. 21:40Indirectly, that money becomes a liability for the bank.
431. 21:43The bank says it will give you 6% or 7% interest.
432. 21:47You make an FD for one year, and after one year you go back to the bank
433. 21:50and withdraw your money along with the interest.
434. 21:52Debt mutual funds work in a very similar way.
435. 21:54In a debt mutual fund, the fund manager lends some money to the central government,
436. 22:01some to state governments, some to corporate companies
437. 22:07like Reliance Industries and Tata Group, some to small-cap companies,
438. 22:17some to private banks, some to small finance banks, some to government banks,
439. 22:25and some to government-owned companies.
440. 22:28So basically, your money is either being lent to governments and government companies,
441. 22:35or to banks, or to corporate companies.
442. 22:38In simple terms, the money is mainly being invested in government bonds
443. 22:42and corporate bonds.
444. 22:44Lending money to the government is called investing in government bonds,
445. 22:49and lending money to companies is called investing in corporate bonds.
446. 22:53So, the basic story of debt mutual funds is that
447. 22:56we are either investing in government bonds or in corporate bonds.
448. 23:02Now, what is the advantage of this?
449. 23:03Suppose you decide, “I won’t invest in this mutual fund.
450. 23:10I have ₹1 lakh, and I will directly lend it to the Government of India.”
451. 23:14You have invested all your money in just one place —
452. 23:17you have lent it to the Government of India.
453. 23:18Of course, this is considered a safe investment, so your money is unlikely to be lost.
454. 23:22Now suppose instead you say, “I will lend all my money to one small company.”
455. 23:28That company promises to give you a 12% return.
456. 23:31But if you lend money to only one company, there is also risk involved.
457. 23:34If tomorrow that company shuts down, runs away, or goes bankrupt,
458. 23:37then your entire money could be lost.
459. 23:39That is why we choose debt mutual funds —
460. 23:42so that our money can be diversified across different places
461. 23:45and the overall risk can be reduced.
462. 23:47Some money will be lent to state governments, which is considered safe.
463. 23:51Some will go to the central government, which is considered extremely safe.
464. 23:53Some will go to government banks and government-owned companies,
465. 23:56which are also very safe.
466. 23:57But the returns from these are lower.
467. 23:59They may give only around 6%, 7%, or 7.5% returns
468. 24:02because they are very secure investments.
469. 24:03So what do fund managers do to increase profits?
470. 24:05They invest a small portion of the money in smaller companies
471. 24:07that may offer 13% or 14% returns.
472. 24:09But only a small portion is invested there.
473. 24:10Even if one such company fails, the rest of the investments remain safe.
474. 24:14Now let me show you something.
475. 24:16Forget debt mutual funds for a moment.
476. 24:20Suppose you want to directly buy corporate bonds or government bonds yourself —
477. 24:29how can you do that?
478. 24:30After all, the video should also be informative and educational.
479. 24:32I have added some screenshots here. Government bonds look something like this.
480. 24:35First, let me show you this.
481. 24:37This is an application called Upstox.
482. 24:41Inside Upstox, you can see T-Bills (Treasury Bills).
483. 24:44As I explained earlier,
484. 24:45when we lend money to the central government for less than one year,
485. 24:50it is called a Treasury Bill.
486. 24:52Then there are Government Bonds.
487. 24:54When we lend money for more than one year, they are called government bonds.
488. 24:58For example, here you can see an interest rate of 7.24%.
489. 25:03“GS” means Government Securities, maturing in the year 2055.
490. 25:07Right now it is 2026.
491. 25:09Then 2036, 2046, and 2056, that means this particular bond will mature after 29 years.
492. 25:17You will continue receiving an interest rate of 7.24% here.
493. 25:20Now suppose you invested in this bond in the year 2026.
494. 25:24Let’s say you invested ₹10 lakh.
495. 25:28After one year, if you want to withdraw your money, can you do it?
496. 25:32Absolutely, you can.
497. 25:33Let me explain how.
498. 25:34Suppose today you invested ₹10 lakh.
499. 25:36After one year, you decide that you want to withdraw your money.
500. 25:39So in that case, what will happen?
501. 25:40Let me explain.
502. 25:41Suppose today the interest rate is 7.24%.
503. 25:44After one year, let’s say the government starts issuing new bonds,
504. 25:48and at that time the government reduces the interest rate to 6%.
505. 25:51And you say, “After one year, I want to withdraw my money."
506. 25:53In that case, the value of your ₹10 lakh investment
507. 25:55could rise to around ₹11.5 lakh or even ₹12 lakh.
508. 25:58Why?
509. 25:58Because the new bonds being issued by the Government of India
510. 26:01are offering only 6% interest,
511. 26:02while you are holding a bond that gives 7.24% interest until the year 2055.
512. 26:08So naturally, your bond becomes more valuable in the market.
513. 26:11Suppose you invested ₹10 lakh today,
514. 26:14and after one or two years you need the money urgently.
515. 26:16At that time, you withdraw the money.
516. 26:18But at that time, the Government of India is issuing new bonds at 8% interest.
517. 26:22Then the value of your ₹10 lakh investment could fall to around ₹8 lakh or ₹8.5 lakh.
518. 26:25Why?
519. 26:26Because you are holding a bond till 2055 that offers only 7.24% interest.
520. 26:32These are called G-Secs, which means Government Securities.
521. 26:35They are also commonly referred to as gilt funds.
522. 26:36Essentially, they mean the same thing.
523. 26:38Then there is something called SDL — State Development Loan.
524. 26:41Government Securities are loans that we give to the central government.
525. 26:45But suppose the Maharashtra government, Haryana government, Punjab government,
526. 26:49or the Delhi government needs to borrow money.
527. 26:52In that case, those borrowings are called SDLs, or State Development Loans.
528. 26:55Hope that part is clear.
529. 26:56Now similarly, suppose I want to lend money to a corporate company.
530. 27:00I have added a screenshot for that too.
531. 27:01These are called NCDs — Non-Convertible Debentures.
532. 27:06It means that we are lending money to the company, but later we cannot say,
533. 27:10“Convert this money into equity shares because I now want ownership in the company.”
534. 27:16A corporate bond remains a corporate bond.
535. 27:18You cannot convert that money into ownership or equity in the company.
536. 27:20That is why they are called Non-Convertible Debentures (NCDs).
537. 27:23You can also simply call them corporate bonds.
538. 27:26I hope you are learning a lot from this video today.
539. 27:30So please do like the video, subscribe to the channel, and share it with your friends.
540. 27:34Do leave positive comments, and if you have any feedback, please share that as well.
541. 27:40Now this is a corporate bond.
542. 27:41That means this time we are not lending our money to the Government of India.
543. 27:45Instead, we are lending our money to corporate companies.
544. 27:47For example, this is a corporate company called KrazyBee Services Private Limited.
545. 27:51What does this company do?
546. 27:52It is a loan application — like those instant loan apps.
547. 27:55This company is borrowing money from you at 11.10% interest.
548. 27:59Then at what rate do they lend money further?
549. 28:00They may give loans at 25%, 30%, 35%, or even 40% interest.
550. 28:03So naturally, they make huge profits.
551. 28:05Is there risk involved? Absolutely.
552. 28:06This is not a government company.
553. 28:08Tomorrow it could default, shut down, or disappear.
554. 28:09Our money is at risk.
555. 28:10That is why it is considered risky,
556. 28:11and that is exactly why it is offering an 11% rate of interest.
557. 28:14For how long are they asking you to invest your money?
558. 28:16It was written here somewhere — yes, here it is.
559. 28:23Your money will remain invested for 1 year, 10 months, and 19 days,
560. 28:29and the return offered is 11.10%.
561. 28:32Technically, your money is not completely locked
562. 28:34because you can sell the bond in between.
563. 28:34But the same issue comes up again — these are corporate bonds of smaller companies,
564. 28:38and often there are not enough buyers available in the market.
565. 28:39If you want to sell it, you can sell it.
566. 28:40The companies are listed, but if no buyer is available, then what is the benefit?
567. 28:44So practically, you can consider it as locked for that period.
568. 28:47You are being offered this rate of interest on it.
569. 28:49That is how corporate bonds work.
570. 28:51Now let me show you another example.
571. 28:53This one is a government-owned company called Power Finance Corporation.
572. 28:58This company is also issuing corporate bonds
573. 29:00because technically it is still a corporate company.
574. 29:02How much interest is it offering? 7.05%.
575. 29:04Why is the interest lower?
576. 29:05Because it is a government-owned company.
577. 29:07Everyone knows that it is very unlikely to fail.
578. 29:08Imagine if this company started offering 15% interest —
579. 29:09people all across India would rush to invest in it
580. 29:11because they know the company is backed by the government.
581. 29:16And even if such a company faces problems,
582. 29:17the government would most likely step in to protect investors’ money.
583. 29:19That is why these companies offer lower interest rates.
584. 29:20Now look at this — they have launched different series:
585. 29:22Series IV, Series V, Series II, Series I, and so on.
586. 29:24In Series IV, they are offering 7.05% interest, and you have to invest for 180 months.
587. 29:32Can you sell in between?
588. 29:33Yes, you can, just like I explained earlier.
589. 29:35Series V is also offering 7.05% interest for 180 months.
590. 29:40Now notice one more thing written below — it says “Annual.”
591. 29:45That means you will receive the entire year’s interest once every year.
592. 29:49For example, suppose you invested ₹10 lakh at an interest rate of 7.05%.
593. 29:53The total interest earned for the entire year
594. 29:56would be paid to you once at the end of the year.
595. 29:57And after 180 months — which is 15 years —
596. 30:02your original ₹10 lakh investment would be returned to you.
597. 30:04So, this is how corporate bonds are issued.
598. 30:07But we are not going to directly buy corporate bonds.
599. 30:10We are not going to do things like saying,
600. 30:14“I will buy the corporate bond of this company,”
601. 30:16or “I will buy the bond of some small unknown company,”
602. 30:20or “I will directly lend money to the Government of India.” No.
603. 30:22You are not going to use that much brainpower for all this.
604. 30:23What you will do is simply invest your money in debt mutual funds.
605. 30:29Your fund manager will automatically allocate your money across different investments.
606. 30:32Now, I had written down a few debt mutual funds that you can invest in.
607. 30:37For example, there is something called a Banking and PSU Fund.
608. 30:39In this type of fund, the fund manager mainly lends money to banks
609. 30:45or to government companies (PSUs).
610. 30:48Now you may think, “Then the returns will be very low because everything is safe.”
611. 30:50Not really.
612. 30:51Government banks are considered safe, but private banks are slightly riskier.
613. 30:55Small finance banks are even riskier.
614. 30:56Since the risk is higher there, the returns are also higher.
615. 30:59Meanwhile, the government-related investments provide safety.
616. 31:02So overall, your portfolio remains balanced.
617. 31:04This segment is good.
618. 31:06You can choose the specific fund yourself, but the segment itself is good.
619. 31:09Then there are Corporate Bond Funds.
620. 31:11In these funds, most of your money is invested in different corporate companies
621. 31:15rather than government bonds.
622. 31:17And then there are Dynamic Bond Funds.
623. 31:19These invest both in government bonds and corporate bonds.
624. 31:24So by now, we have roughly invested 75% of our money:
625. 31:2860% in equity mutual funds 15% in debt mutual funds
626. 31:33Now let’s move a little further.
627. 31:35The next investment option is a PPF account.
628. 31:38This is basically a government scheme.
629. 31:40We will invest 10% of our money into this.
630. 31:41Now, it is not necessary that you must open only a PPF account.
631. 31:43Suppose you have a girl child at home,
632. 31:45then you can also open a Sukanya Samriddhi Yojana account.
633. 31:48Sukanya Samriddhi Yojana can only be opened for a girl child.
634. 31:51It is a 21-year scheme.
635. 31:52The Public Provident Fund (PPF) account, on the other hand, is a 15-year scheme.
636. 31:56So basically, whether it is a PPF account or a Sukanya account,
637. 32:01I always say in my videos that these are like piggy banks
638. 32:04that you cannot break in the middle.
639. 32:06I always explain this with my own practical example.
640. 32:09People may ask, “Why open a PPF account?
641. 32:11It gives only 7.1% interest.”
642. 32:14That’s okay.
643. 32:14So what if the interest is lower?
644. 32:15Let me explain with my real-life example.
645. 32:18My daughter is 4 and a half years old.
646. 32:21I did not open a Sukanya account because it is a 21-year scheme,
647. 32:24and that felt too long to me.
648. 32:25Though many people do open it.
649. 32:27PPF, on the other hand, was a 15-year scheme.
650. 32:28So my purpose was simply to accumulate money for my daughter.
651. 32:31Now my daughter is four and a half years old.
652. 32:34When she was born, I opened a PPF account, and my wife also opened a PPF account.
653. 32:40Both of us had the same intention — to save money for our daughter.
654. 32:43She would contribute some money from her income, and I would contribute from mine.
655. 32:46Then gradually, it was not just PPF.
656. 32:49We also invested money in mutual funds, FDs, and many other places.
657. 32:54Now what happened later?
658. 32:55Till now, I have been living in a rental property.
659. 32:57Even this video is being shot in a rented house.
660. 33:01Then we wanted to purchase a plot because, obviously, we wanted our own house someday.
661. 33:06But property prices in Mohali and Chandigarh are very high.
662. 33:09So what happened was that I had to break almost all my investments.
663. 33:13I even had to take some home loan as well.
664. 33:16All the investments that could be broken — mutual funds, FDs, and everything else —
665. 33:21were withdrawn.
666. 33:22But PPF accounts cannot be broken before maturity.
667. 33:25So neither my PPF account nor my wife’s PPF account was touched.
668. 33:28Even today, those PPF accounts are still running.
669. 33:30Why were they started in the first place? For our daughter.
670. 33:32So naturally, that money should only be used for her.
671. 33:34Think about it — when buying a plot, we humans become greedy.
672. 33:38We keep thinking: “A little bigger… a little bigger… a little bigger.”
673. 33:40Honestly, even a smaller plot would have worked fine.
674. 33:42And if these funds could also have been withdrawn easily,
675. 33:45then my greed would probably have increased even more.
676. 33:48I would have thought: “Let’s buy an even bigger plot.
677. 33:50After all, a house is built only once.”
678. 33:51And suppose after buying the plot, construction costs came up.
679. 33:56If these funds could have been broken,
680. 33:58then I know exactly what I would have said: “Let’s install premium doors,
681. 34:01expensive marble, and do everything in a luxurious way.”
682. 34:04I would have broken these funds too instead of making adjustments.
683. 34:09That is why I always say in my videos that
684. 34:11if you are opening a PPF account or a Sukanya account for your children
685. 34:14or for their higher education, then these are very good investments.
686. 34:18Yes, the interest rate may be lower,
687. 34:20but these are like piggy banks that cannot be broken easily.
688. 34:22And because they cannot be broken, money actually accumulates in them.
689. 34:24Otherwise, what usually happens?
690. 34:25“Oh, let’s go to Goa.”
691. 34:25“Fine, break the savings quickly and let’s go on a trip.”
692. 34:29So we will invest 10% of our money into this as well.
693. 34:32That means:
694. 34:3360% of our money has been invested in equity mutual funds
695. 34:3615% in debt mutual funds 10% in PPF
696. 34:41So overall, 85% of the money has already been invested.
697. 34:46After this, I will invest another 10% into my short-term goals.
698. 34:50Now you may say, “We are just continuously investing everything.”
699. 34:54But listen carefully, first of all, you should mentally separate your expenses.
700. 34:58Whenever your salary comes in, you should never follow the approach of:
701. 35:02“First I will spend money, and whatever remains, I will save.”
702. 35:04If you follow that method, you will never be able to save anything meaningful in life.
703. 35:07The simple rule says this: the moment your salary comes in, first pay yourself.
704. 35:14That means the first thing you should do is set aside your money
705. 35:17for savings and investments.
706. 35:19Suppose your salary gets credited on the 1st of the month.
707. 35:22Whatever percentage of money you can invest — at least 20% is the bare minimum.
708. 35:28You must invest at least that much.
709. 35:30Anything above that depends on you — your ambitions, your future goals,
710. 35:36whether you want to start a business someday, or whatever financial goals you have.
711. 35:41But if you invest less than that, then things won’t really work out in the long run.
712. 35:44So whatever amount you want to invest, invest it on Day One itself.
713. 35:47After that, handle your expenses.
714. 35:49And within those expenses, also include the premiums for your term insurance
715. 35:51and health insurance.
716. 35:55Now let’s talk about savings.
717. 35:59Suppose you say: “Every month, I save ₹10,000.”
718. 36:04Then at least 10% of that amount — meaning ₹1,000 every month —
719. 36:08should be saved for your short-term goals.
720. 36:10Those short-term goals can be anything.
721. 36:13Now, I just took ₹10,000 as an example.
722. 36:14If your salary is ₹50,000, then naturally it becomes ₹5,000 every month
723. 36:17according to the same calculation.
724. 36:18Maybe you want to buy a laptop, a mobile phone, or something else.
725. 36:21For all such short-term goals, you must save at least 10%.
726. 36:26Now comes the last thing — retirement.
727. 36:29And for retirement, it is not necessary that
728. 36:31you blindly put money only into National Pension System (NPS).
729. 36:33Personally, I do not find it extremely attractive.
730. 36:37You can invest anywhere for retirement.
731. 36:38But the condition should be this:
732. 36:40Until you turn 60 years old, you will not touch that money.
733. 36:43Once you become 60, then you can do whatever you want with it.
734. 36:47But before the age of 60, you should not touch it.
735. 36:51So 5% of your money should be reserved for retirement.
736. 36:54If you want, you can invest it in NPS.
737. 36:57Otherwise, you can also invest it in a good mutual fund.
738. 37:01You can put the money into a large-cap mutual fund or into an index fund
739. 37:05because those are relatively safer options for retirement.
740. 37:07We do not want to take unnecessary risks with retirement money.
741. 37:09So for the long term, you can invest in large-cap funds or index funds.
742. 37:14Invest 5% of your money
743. 37:16and do not touch it until you turn 60 because that money is meant for your retirement.
744. 37:20Anyway, we have discussed all these things.
745. 37:22Now one more important point.
746. 37:23Some people may ask: “Why didn’t you discuss real estate?”
747. 37:27Real estate is mainly a game for people who already have
748. 37:32substantial money or strong financial backing.
749. 37:35Money can definitely be made in real estate.
750. 37:36I have some very close people around me,
751. 37:39and I’ll tell you a little about how they make money in real estate.
752. 37:41I’m sharing a practical example.
753. 37:45Property prices are very expensive in Chandigarh.
754. 37:49Suppose there is a plot worth ₹5 crore or even ₹10 crore.
755. 37:52Now, obviously, one person alone may not have that much money.
756. 37:54So let’s assume there is a ₹5 crore plot.
757. 37:58Five people — very close people who trust each other blindly.
758. 38:04Now don’t blindly try this yourself.
759. 38:07These are people who already have ₹20–30 crore each.
760. 38:12Each person invests ₹1 crore, and together they purchase the property.
761. 38:17Then after 6 or 8 months, they sell that property in the market for ₹5.5 crore
762. 38:21and each person walks away with around ₹10 lakh profit.
763. 38:24This is how many property dealers work in real estate.
764. 38:29They form groups and invest together in properties.
765. 38:33But there is one major problem in this setup.
766. 38:35The property registration can only be in one person’s name.
767. 38:36Suppose the property is registered under one person’s name, and later that person says:
768. 38:41“I don’t know you people. The property belongs only to me.”
769. 38:47Then what happens?
770. 38:49That is why trust is extremely important in these kinds of investments.
771. 38:51And remember what I said —
772. 38:52the people who form such groups already have ₹20–25 crore each.
773. 38:56So even if their ₹1 crore investment
774. 38:57gets stuck or lost, it does not destroy them financially
775. 39:00because they already have substantial wealth.
776. 39:02But imagine if our total savings itself was only ₹1 crore,
777. 39:05and we invested all of it into one group deal, and later fraud happened —
778. 39:08then we would be finished financially.
779. 39:09So this is how real estate often works.
780. 39:11Real estate definitely has its own advantages.
781. 39:14I have observed it very closely
782. 39:17because some people very close to me are deeply involved in it.
783. 39:21But you need to understand the right way to invest in real estate.
784. 39:23If you have substantial money, then you can also make substantial profits.
785. 39:26For example, when they invest, they prefer things like corner plots
786. 39:31or park-facing plots because such properties are easier to sell later.
787. 39:36That is how they approach investing.
788. 39:38So yes, if someone has good money,
789. 39:40they can diversify — keeping some money in mutual funds and some in real estate.
790. 39:44Real estate is also a very good segment, and it can definitely be considered.
791. 39:48But if you are a salaried person saving ₹10,000, ₹20,000, or ₹50,000 every month,
792. 39:51then realistically you cannot jump into real estate immediately.
793. 39:53First, you need to build your corpus through the financial markets.
794. 39:57Anyway, that was the complete video.
795. 39:58I hope you found this session informative.
796. 40:01We will meet again in the next video.
797. 40:03For now, this is the end of the video.
798. 40:04Thanks for listening, and thank you all.