@Aman Dhattarwal Notes on Stock Market : How to Invest in Stocks for College Students - YouTube

Hello friends, I, Jagdeep Singh, welcome you all to Groww

As you all know, every week, we invite a guest on our channel

who answers all your questions in a very interesting way

and help you immensely to become a good investor.

So, proceeding with the same series, we have today with us, Aman Dhattarwal.

Welcome, Aman! I welcome to Groww channel.

Hi Jagdeep!

First of all, Thanks. I am very happy to be here as a part of this video.

And I am ready to answer all your questions.

And I hope there are a lot of students out there that will benefit from these answers in this video.

So... let's start!

So, Aman, we have a lot of college students as our audience who want to start their investment journey in their early days.

Because every investor is told that the sooner you start, the better is the scope of good investment experience.

and good returns.

So, first and foremost, I would like to ask you the question

that what are the things college students should focus on during their college life

in order to achieve financial independence before they start working?

Okay!

So, our education system is designed in such a way that till 11th and 12th, a student is occupied with

board exams, or competitive exams such as JEE and NEET preparation.

Now, the moment you get into college, so, there is one more benefit of this education system

that we get a lot of free time

Especially if someone is in a government college.

Now, if we fix our goal such as college placement

It works in the case of Top tier government colleges.

But as we go downwards towards small colleges, we don't get the placement as Tier 1 colleges.

So, firstly, we need to change the mindset and a lot of students think in this way.

"I am still in college, I should not run behind job or money"

"I'm getting money from my parents as of now"

If a student shapes his mindset from the very first year of college in such a way that

he/she needs to be self-dependant and earn money on his own and pay the fees as well

then your mind starts thinking of different ways, right?

You will not only focus on your placement, just the way we do after engineering.

I was in NSIT and the average pack of our class was of 17 lakhs

and we students used to study for only 3 months out of 12 months

5 and a half months were official holidays and including offs like Saturday and Sunday

and the rest of the days also, nobody used to study

So, basically, we used to study for 3 months

3 months of study is enough for placement.

So, in these 4 slots of 9 months, a student can work parallel on developing a new skill.

So, now that you have asked how to invest?

What I think is - before investment one needs to earn and the stock market is definitely a good place to invest

If you have earned it beforehand

Instead of parking your money in banks and fail to defeat inflation, it's better to invest it in a good place.

So, first, it's important that you earn well before investing and you need to be patient while earning

Nowadays, there are a lot of opportunities

10 years ago, people had to struggle

even if they wanted to market something, they had to advertise in the newspaper through pamphlets.

In today's world, you don't have to take that much effort.

Nowadays, you can do digital marketing which very inexpensive.

First-year students usually do not have that much money, so they can create their social media handles

and post their content there.

I will give you a small example.

I was at a seminar in Chandigarh before the corona thing happened.

So, I met a kid there who told me that he uses TikTok to sell his utensils

So, he uses TikTok to redirect the audience to his website.

So, by doing this, he used to earn revenue of around Rs. 25000

I met one more kid

So, just like your T-shirt has Groww printed on it

you might have got it printed from somewhere.

He also wanted to do the same.

After class 12th or college degree farewell, when students leave their school, they want a photo of their batch printed on t-shirts.

with their name on the back and their class name on the front side.

So, he used to do the same thing and made 25000-30000 per month.

So, small initiatives like these need preparation of 3-4 years in a particular field.

So, success comes from unique work.

UPSC has a lot of aspirants and other exams have the same condition as well.

and if I talk about other domains, each and every student should keep striking

even 2-3 hours is enough in a day. A constant 3-4 years of preparation will make him reach new heights.

So, whatever income the student earns from these types of jobs, he can invest that in the stock market.

If he is a no knowledge investor and doesn't know much about the stock market

But have started investing based on someone else's recommendations

So, in this case, he can play safe and invest in NIFTY Index

Or we have passive funds also. These are not the best funds but in the long run, it can perform really well.

So, that's it.

So, as you said how important it is for the students to earn on their own.

the sooner they plan and earn the better investment they can do.

But again there is one more very important aspect along with earning, which is the expense.

How to plan your expenses? How can college students plan their expenses?

Because if they keep their expenses under control, they will be to save more

and if the savings is good, then the investment will also be good.

and then only the will be able to plan their expenses.

In my opinion, colleges students don't have that many expenses.

They are always behind saving money. Hardly they go to canteens and all.

If you have a decent earning, there are two scenarios:

Either you are not earning anything and whatever your parents have given you, that's your savings amount and you're investing the same.

The second scenario is "I should start earning, and in the first month I have earned Rs. 5000"

First of all, we have the mentality that if you are earning Rs. 5000 through freelancing, it is bad.

Today that is 5000. The moment you earn 5000, we think to make it 10000.

Then how to make it 15000. If you earn 10000, then you will think where to keep it and make it grow.

You just need to roll the ball

and Afterall, it's college life. You should enjoy it also, go out sometimes.

But at the same time, investment is also required from an initial age.

Because compounding is a wonderful thing and as Einstein has said - "It's the 8th wonder of the world"

The more time you give it, the more it will grow, right?

You leave one thing for 20 years for compounding, another thing for 40 years, and one more for 30 years; there will be a massive difference.

So, in fact, the process itself is fun.

There is a thing called dopamine inside your mind.

That is often released for unpredictable things

People often like new and unpredictable things, for example, games - you don't know whether you'll win or lose.

So, it's very addictive.

I guess it's a kind of domain for which schools don't teach you that much about financial investing

Well, in this case, you have to teach yourself more and more and decide where to invest

so that you can earn a good return

You learn about FD and RD, passive funds, index funds, ETR

So, this is an interesting journey and simultaneously you enhance your savings also.

So, Aman as you have said, compounding is very important and we also tell our investors about the same

The important thing about compounding is the sooner you start the more profit you will have in the future

So Aman, the next thing which we will talk about is a lot of people believe in the “the right time to invest “ and they always seek answers to it.

They keep waiting for the right time to start investing.

So, a lot of people, while looking for the right time, end up keeping their money in one place where they don't even get any return.

What would be your opinion for those people? What is the right time to invest and whether now is it the right time to invest?

So, the issue which you have talked about, this is not only the case with the investing world but in all the scenarios or domains of our life.

We keep procrastinating things and forget the fact that tomorrow never comes

So, there are two types of people here - One who has a good knowledge of the market and they follow the trend every day

For example, there are people who see NIFTY and say that there might be a dip in the future.

So, let's keep it as it is and later we will jump in.

At the same time, there is a no knowledge investor, suppose a college 1st or 2nd-year student who doesn't know much about the market

Although, he invests money but doesn't follow the trend every day.

So, these kinds of kids can opt for monthly SIP which is perfect for them

Irrespective of the market's ups and downs, you will make the same amount.

So, in the long run, it's a better thing

The most important thing is to start. Starting is the most important part.

The same thing happens in our content creation also

You have logistics like you have a camera, audio. So, a lot of people wait until they have a DSLR

They think that they will start with DSLR and a live streaming setup

No, you need to start first.

So, never wait for the right time. This is the right time. The more you wait, the lesser benefits of compounding you are going to get.

Sometimes, while waiting, 10 years pass by and you are gonna regret later

You will become 30 years of age and see that your friends have invested from 5-6 years

If I would have invested, it would be better.

Because it won't grow if kept idle in the bank.

This is the same thing, why some people don't invest because they want to make a 20% return in one year.

But a lot of people invest because even if they 10-10% return for the next 10 years, they will make good money out of it

than people who don't invest and wait for the right time

So Aman, if we are talking about investment, let's talk about the Indian economy

So, what do you think of the Indian economy, how is the current scenario and what improvements we can see in the future

and how will it impact investments?

Our condition is very good and we are growing at a very good speed.

Recently, I have posted a video on stock market where

where I have stated that if we see ourselves now, we have a GDP of around 3 Trillion dollar

and if we delve deeper, we have 3 sectors that are - Service sector then the manufacturing sector and agriculture sector

So, our service sector which is the best sector, contributes almost 60% and gives employment to around 28% of the population

So, what happens is whenever a country gets freedom

Be it America that got its freedom in 1840 or China or India.

First of all, the agriculture sector is the most prominent and the majority of people are working there

Gradually, as education is provided, it goes into manufacturing and its takes one more generation to go to the service sector

If you consider a small example of Apple. Apple also says that it is designed in the USA and manufactured in China.

So, designing is an important part and manufacturing is done by China

Anyways, if we even compare ourselves to China, we still strong in the service sector

and due to the digital environment where people have easy access to knowledge

Someone wants to become an animator, so on the spot, he goes to YouTube and watches some series followed by 1-2 months of practice

and he is ready to work.

whether you want to become freelance coder, app developer, web developer, all these things you can easily do nowadays

so here we get an edge

If we consider China, it's working population won't be young in the coming years compared to our Indian population

So, in this scenario, a big population has some pros like, if we give them right direction and employment, we will boom exponentially

We can help the world, globally in the service sector

In fact, what I think about the knowledge which is accessible due to the internet

so, not in the higher end of the service sector but one can contribute at least in the lower end

so, the future is bright

and we will become the superpower in the future. it's a fact

so, yes the Indian economy is very good and will perform great in the future.

So, Aman, let's move to our last question which is related to gold and real estate

A lot of people say that we should invest in gold and real estate and traditionally also we used to invest there

Nowadays, people have started moving towards equity and other investment methods. What would you like to say about this?

So, if we talk about Real estate or Gold, real estate varies from area to area or location to location

This is a type of sector where you can't say that yes this property will go up or go down

So, if we talk about Gurgaon and the commercial properties there, so in 2001 the properties that were of Rs. 100, became 300 in 2003, 3 times.

If we talk about 2009, the same thing was of 1200. So around 12 times in 9 years.

So, you are getting 33% CAGR there

So now, if we talk about 2009 to 2019, it has hiked only to Rs 1500 from Rs 1200

So, from the last 10 years, it didn't even double which is 3% of CAGR

So, what happened was till the year 2009, we had some bull runs every now and then just like in the stock market; it got hiked

A property worth Rs. 100 went up to 120 and then 150 and then 180

But when the bubble was created in 2009, if we calculate the average of the last 20 years, it comes to be around 15%

and if we give it some more time, it will static and you will observe that you are getting only 10-12% of return in the long run

which is directly proportional to how your salary is increasing

because if you buy something today, the property prices should go up according to your purchasing power if we talk about the long run, i.e. 20-30 years

normally, if your salary is increasing by 10% then your rent is also increasing by 10% every month

and in the long run, that is what matters to the property.

This thing is not fixed, there are some properties also that were of 30 lakhs 20 years ago and still, their value is the same and have gone down

and there are some properties that are not affected by Corona or other things, their prices are constantly going up

It all depends on where you from, what is the scenario over there, is everything residential or there are commercials also.

Is it a hotspot or not. In my opinion, a hotspot is a property which can be easily rented out today only

So, that's it. If we talk about Corona, the market is a little bit down.

Down in the sense, the market has less money and you don't have buyers

so, the desperate sellers who just want to sell just to cash in

They even get ready to sell for lesser price

and here you can get that 10% margin

we all know that Corona will go in a maximum of 2 years, so at that time we can sell or can keep it for a longer period.

Similarly, if we talk about gold, it is a type of currency, as you have said, whenever the share market goes down, it goes up

The reason being, fear of the people; they think that in these times of Corona, they should not lose their money in the banks

and that's why they don't want all their money to be kept in the bank

So, where to invest them?

So, gold is a good asset to invest in these times

So, these are the things and you should also keep a balance; also your age group matters a lot.

If you are a youngster of 20-22 years, real estate will be a bit complicated investment for you

In this case, you can invest in stocks, play safe, keep some money in FD. SO basically maintain a balance.

Every student has his own needs and in this case, you are your best financial advisor

That's it!

Thank you, Aman, thank you very much and would you like to give some closing note to our viewers at the end of the video

Something related to investment or studies related. Anything!

The closing note would be if you are in college, if you are a college student then enjoy your time and keep exploring

and somethings are not taught in schools or colleges and one of them is knowledge about financial investment

So, in this case, you have to be your own mentor and explore everything in the market. Everything you want!

So, that's it!

This is enough!

Thank you, Aman. Thanks for coming to Groww

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