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Mutual Funds & Share Market Returns vs Fixed Deposit (FD) | Recession 2020, Corona Crisis in India - YouTube
Channel: Asset Yogi
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Namaskar, my name is Mukul, and welcome to asset Yogi.
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Friends, there is a lot of confusion going on these days.
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Especially when it comes to our money.
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Whether we should save our money in a bank account or invest it
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Or we should withdraw the money
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which we have already invested.
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Many subscribers are asking questions that,
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The money we invested in mutual funds
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So that our portfolio got down by 20 to 25%
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And at the same time if we talk about FD, If you have invested your money in Fixed Deposit
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So in that, you would have got returns of 6 to 7%
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And we are seeing that on one hand there is a loss of 25 to 30%
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and on the other hand we can see the profit of 7%
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So definitely this proposition, in today's time, the side of FD is overwhelm
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And here we are talking about only 1-year returns
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That there has been a loss of 25 to 30% in mutual funds.
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But we are always told that mutual funds are always beneficial in the long term.
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So in 3 years, 5 years
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Or in 10 years
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How much returns have we got in mutual funds?
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We will also see this, and we will also see whether we have got better returns in FD.
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We will do this analysis based on data.
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So that we could get our final decision.
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If mutual funds are giving such a loss.
So should we invest in mutual funds?
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And if we should invest then what kind of returns should we see
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we are going to know all these things in this video, So stay tuned to this video
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Please press the bell icon while subscribing
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So that you will get notification of the latest finance videos
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Let us see the chart of Nifty for the last 10-12 years.
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what kind of returns we have got
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Now if we are talking about Nifty we will get the overall idea from it
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On average how many returns have been given by the stock market?
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And mutual funds also generally follow Nifty and Sensex
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There are very few mutual funds that can beat the Sensex and Nifty
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So when we're talking about average returns,
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So we are talking about the returns of Nifty.
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So let's take a look at what kind of returns Nifty has given
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The data I have taken here is of 31 March 2020
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So If someone had invested earlier
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And if someone sold on 31st March 2020.
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So we will calculate our returns according to the value of nifty as of 31st March
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So if someone had invested on 31st March 2019
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So he would have a portfolio of -26% in one year.
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That is, the returns of Nifty became -26%.
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Here the value of Nifty was 8,597 on 31st March
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Whereas, on 31 March 2019 the value was 11,623
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And if we talk about 3-year returns then
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i.e. as of 31 March 2017
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So then its value was 10,955
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And if we look at the 3-year Annual Returns
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So here it is of -7.76%
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So here too there is loss.
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So as we're always told it's always profit in long terms
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But see there has been a loss even in 3 years.
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Now if we talk about 5 years
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So the value was 8,491
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So if we look at 31st March 2015.
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So returns of 0.5% only
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Means your money didn't get multiplied
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If you had invested ₹ 1,00,000 then the returns are around ₹1,00,000 only.
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Maybe ₹ 5000 or ₹ 7000 has been added to it.
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So this is nothing in terms of returns.
Let us look for longer term.
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If we talk about 31st March 2010 then
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the value was 5,249
And the returns were 5%
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That means inflation is also not covered.
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So how much longer term than 10 years
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Let's look at 11th years
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This means if you had invested on 31st March 2009
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when the market was at 3000.
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So your returns would be decent.
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Your returns would have been 10%
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But in mutual funds, you are promised that
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You get a return of around 12% to 15 %
So is it good?
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So definitely if we talk about average, so it is right but here
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We'll have to look at some normalities over here.
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look at the graph carefully
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The market has fallen a lot here.
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If we talk about January-February then Nifty was moving above 12000
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If you watch the returns till there, what kind of returns would we get?
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quickly we will check this once.
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If we talk about 2nd January 2020, when our year started
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So let's see what nifty we got.
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On 2nd January 2020, the value was 12,282
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exactly 1 year before that
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i.e. the value on January 2, 2019, was 10,792
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According to this, the annualised returns are 13.81%
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And after that, if we look at the 3-year average returns
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Here we are talking about January.
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So accordingly we will see the returns of 1 year to 10 years
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If we talk about 2017.
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The figure was 8,179, here if we talked about returns
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So the average returns were 14.51%.
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If we talk about 5 years So here the returns are slightly lower
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Of 7.91%
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And if we talk about 10 years,
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So the value was 5,232.
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And the returns were 8.91%
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And on 2nd January the value of Nifty was 3,046
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So here the returns were around 13.51%
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So there is a big difference in 2 to 3 months only
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There is a huge difference.
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And why did this difference occur?
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Because now abnormalities have entered into the market.
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Abnormality means a huge correction has happened.
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And this correction occurred in 2009 also.
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If one had invested at Peak in January 2008
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So he would have to suffer a huge loss.
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Here the market had gone down about -60%.
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The same thing has happened here too.
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Here if we talk about from January to March, then
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So even here the market had fallen by about 30%
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So it's an obvious thing
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That is when we will calculate our market at this low.
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So our returns will be very less.
And it's not just a matter of 1 year,
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If you talk for 3 to 10 years or even longer, then also your returns will be much lower,
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Because the volatility inside Sensex and Nifty can be very high.
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Especially if we talk that when the cycles of 7 to 10 years
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So the recession comes once.
You can see this by studying the entire history.
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So the question comes that what should we do?
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It is very important to study these abnormalities
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So if you are doing mutual fund analysis and you are sitting with a mutual fund advisor
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So when you look at its 3 to 10-year returns
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So definitely look at the abnormalities in it.
Since when is that return being calculated?
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See what happens when the markets fall too much
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So we get to see very good returns in the coming years.
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The same thing happened in 2009
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If you had invested at this time
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If you had invested from January 2 to February or even March
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then you will get very good returns
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If we talk about January 2010
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So see here you get very good returns
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Here if you talk about 3 years or 4 to 5 years, You get to see very good returns
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So here we get a very important lesson that whenever the markets fall
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So Our Historical Returns
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That is, the previous returns are seen quite low.
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But at that time we have a very good opportunity,
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So in such times if we invest money, we will get very good returns in the coming time.
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And whatever our old loss may have occurred, that too will be covered
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But we do the exact opposite.
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When the market drops slightly.
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Let's say that on today's date someone is at 10% loss
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So that guy will withdraw the money.
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Yes definitely you can withdraw that money
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If you have any emergency,
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There may be a risk at your job or business then you can withdraw that money
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Because first, you will fulfil your needs.
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And if we invest at a time when the market goes down a lot.
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So we will see more returns in FD
But if we do the exact opposite,
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that we had invested earlier and at such time we withdraw our money
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So obviously we will withdraw that money on loss
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I hope you got to learn something from this video
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So see you in the next such informative video
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Till then keep learning, keep earning, and be happy as always.
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