GREAT returns with SMALL investments! - YouTube

Hi, everyone. Welcome to today's video.

So in today's video, I am going to cover the topic of how you

can invest small amounts to make big gains.

Now a lot of students reach out to me that hey, akshat.

I'm in College.

A lot of young professionals reach out to me yet.

I have just started my job and I want

to invest small amounts like Rs1000, RS5000, Rs10,000.

So where can I go and invest A for really high gains?

Right.

I'm okay taking more risk, but I want high gains.

So please discuss that option.

And B, I want to invest from a safe perspective.

Also, some bit of this investment.

I want to do it from a safer side.

So please discuss both these options. Great.

I'm going to do that precisely on this video.

Please listen to this video in entirety.

Otherwise it does not make sense because

I'll discuss just one part of the option you will see.

Ok, great. This is awesome.

I'm going to put all my money in this. Please don't do that.

Please understand the risk return profile.

That is what I am going to predominantly discuss about.

So I am going to discuss two options on the both side of the spectrum.

And if time permits, I will also discuss a medium risk option.

Okay, so let me start with an option

that is relatively safe for investing small capital.

Okay, so the option's name is called as Bond IPO investing.

Now what is meant by bond IPO investing?

And why is it important?

So bond IPO investing works very similar to stock IPO investing.

For example, recently PayTM launched its IPO policy with our launch its IPO.

So you applied via your trading account,

for example, zerodha, and you got allocation of those stock IPOs.

Now bond IPOs also work in a similar manner.

Now you would say, okay, what is the benefit of applying in bond IPOs?

So just very quickly explaining what bond

IPOs are through bond IPO, you get to invest in bonds.

Right.

So that's the first key concept that you need to understand.

What are bonds?

There are two types of financing that a company can undertake.

For example, ITC can sell its stocks,

that is, stocks, financing or equity financing for ITC.

Similarly, ITC can launch its own corporate bonds.

So bond is taking a loan.

The company is not selling,

its equity company is taking money on loan, that is via bonds.

So governments also do it.

I had made a separate video.

You can check it here somewhere.

I have explained the basics of bond investing and you can understand it more.

Now, what is the benefit of bond investing?

Relatively speaking, bonds are safer compared to equities.

Now, why is that?

Because as a bondholder in a company sells you, it's bond.

You become a bondholder.

What ends up happening is that let's say ITC.

If it goes bankrupt for some reason, then

bondholders, they get the first allocation of liquidation.

So let's say that ITC if it goes bankrupt

for some weird reason, then ITC's assets will be liquidated.

For example, it has factories so that will be liquidated, it will be sold off.

Similarly, it has some really good machinery so that will be sold off.

So whatever money is coming.

So let's say that they were able to recover.

Let's say 5000 crore in terms of selling factories, lands.

And whatnot then?

This is called as liquidation process and bondholders get the first dip.

So therefore bonds are safer compared to equity, equity holders or shareholders.

They get the last dibs in terms of the liquidation money that is coming in.

And therefore if you invest in bonds,

it is technically safer compared to equities.

Now, problem with bond investing is that bond investing is expensive, right.

The quantum of money that is required

to invest in bonds is usually high, so that can lead to problems.

So if you check my last video, I had spoken about a bond where

the investment amount was two lakh rupees, which was really high.

So you would say, except I want to explore this option.

I want to invest my money,

but I don't have that type of money to invest right off the bat.

So what should I do? I want to explore this bond round.

So what you can do is that you can go on golden pie.

This is an excellent platform for retail investors to invest in bond.

It is India's number one platform right now.

So if you go on collection tab and if you

take a look at best ongoing IPO, you will see edelweiss and you take a look at it.

And here the investment amount is very small.

Right. 10,000 is the minimum investment amount.

And if you are working with small amount

of capital, this is a good investment option from that perspective.

Now let us study the semantics of it.

So for example, here you will get 9.7 per annum as the yield.

Right. And this is the entire schedule.

For example, here you will pay monthly

investment of 10,000 for ten installments and then you will start receiving money.

Right. So initially you will get coupon payments.

That is, you will only receive interest every year.

For example, in 2022,

you will receive in February rs77.5. This is the interest, right.

And you will keep on receiving the interest after interest after

interest, and then subsequently, when the maturity of the bond takes place

when the bonds get mature, which is Jan 2032.

This is where you will receive the face

value, all the money that you are already invested.

So you will get the principal payment

towards the end and a bunch of coupon yields up to the point of maturity.

Now you'd say that they have complicated the math too much.

Does it make sense? Yes, it does make sense.

If you compare it with a fixed deposit,

you can directly go and compare it with fixed deposit rates also,

and it categorically say that your overall yield will be 9.7%.

But if you would have done a simple bank

deposit bank FD, then 5.4% would have been the FD rate as per current standards.

So on an investment of ten lakhs,

you could have earned 2.15 lakh more in a period of five years.

Now there are other details that you can take a look at how risky the asset is.

So this is a double A rating asset which is pretty good.

This is a safer instrument to invest in.

Risk profile is not that high.

Therefore, the returns are not that high.

Also, it is somewhat higher than an FD, which is great.

Is it more safe than an FD?

The answer is no because this is corporate debt, right?

In technical terms, this is called as debentures.

Now, debentures are issued by private

organizations and bond is issued by public organizations.

That is the general difference.

Now, there are other details that you can check.

For example, the seniority.

In case of a default, the bondholder will be considered senior for the payment.

That simply means that in case

a liquidation happens, then these bondholders will get money first.

Right. So if everything fits well with your risk

profile, with the amount of investment that you want to make,

you just simply need to click on Apply IPO now and you have to fill out all the other

necessary details, the total quantum of investment that you

need to make and you will get invested in this particular bond.

So you can check the links in the description box.

I'll post these links so you can go and check it out.

Now you would say Akshat awesome.

You have taught us about bond safe investing, responsible investing.

But you know what? I'm like a risky guy, right?

So tell me where I can make more money, where I can just go and invest 1000.

And I can turn that into 10,000 and I don't even want to wait for ten years.

I can turn this 1000 into 10,000 in a very quick span of time.

And I'm not talking about chit funds

and Malamaal weekly type of schemes and all that stuff I'll give you sensible option.

Is this option risky?

Yes, because it involves a lot of reward

and I will tell you how to mitigate your risk.

Please watch it from an education point of view.

And please don't consider this as an investment advice.

This is risky stuff, right? Okay.

So what option am I talking about?

I'm talking about ICOs initial coin offerings.

At the moment, I say the word crypto.

Half of you will run away.

So please watch it. It's a humble request.

Please watch it.

Because this is something interesting that is happening.

If you spend five minutes watching it, it can stay with you forever.

Right?

So just understand it from that perspective.

Let me first and foremost show you the gains.

Okay, so what do. I mean by ICOs.

Now ICOs work very similar to how IPOs work in the stock market.

When a company wants to get listed on NSE or BSE, what do they do?

They launch an IPO, right?

Recently Zomato launched it.

paytm launched it and a bunch of different

companies launched it and they got listed on NSE and BSE.

Their stocks started trading similarly

in the crypto world, if some coins or some projects have to get listed on different

exchanges, we have to go through a process called an ICO initial coin offering.

Now the magic part about ICO is this right?

And let me show this to you via an example.

Now, this is a list of some listed coins.

And if I Scroll all the way through,

you will see a bunch of different different coins.

Everyone knows about Bitcoin Ethereum.

I'm not going to talk about it.

I'm going to show you some really unknown coins.

So let me go on something like 426 ranked coin and this is called as bit shares.

So in terms of market cap, bit shares is ranked at 426.

So let me show you the pricing history of this.

What you will see is that the coin got listed here somewhere on 26 August 2014.

It got listed.

It traded for a couple of years or two, three years and then it skyrocketed.

The price literally grew from .01 to point

26 approximately 26 times gain in a matter of three years.

Right now you can share this took three years.

Let me show you some of the random coins.

Let me show you Komodo right now.

Here what happened is that here the coin got listed here.

The ICO happened sometime in February 2017

and coin making it speak in December, right?

Roughly ten months. What was the game?

So we started somewhere around .07 and we hit almost $11.

I can't even compute it.

It's manifold returns.

So $1 is definitely turning into $100.

If you would have invested in such IPOs.

Now I'm not hand picking it right.

You can do this analysis yourself in the crypto world.

When I go to get launched, there will always be a peak close to the peak.

The prices might tank.

But there is a massive run up and we

should take advantage of this run up if you are speculating.

Of course. Again putting up the Disclaimer.

This is risky proposition.

I am not advocating this style of investing, but I'm simply telling you

that a lot of people come to me and they say that you know what akshat?

Should we invest in IPO? Should we invest in Penny stocks? Should we invest here?

Should we invest there? You're trying to speculate.

So I'm just telling you a better method to speculate.

If you want to take risk and reap excellent rewards.

It is risky, but the returns are also very high.

That is committed with the risk.

So if you want to invest like 0.5% of your portfolio on such speculative investment.

It is fun from that perspective, but just take it as fun.

Do not consider this as an investment advice.

I am saying it over and over and over again.

Important point being that if you do this analysis of ICO growth,

that our point gets listed, it hits a high and then it starts falling.

Take advantage of that, hitting a high.

Now how do you invest in an ICO?

I'll have to make a separate video on that in case you want.

I can talk about more.

I'm talking about research today.

So what you can do is that there is a website called as ICOdrops.

Com. So you can go to that.

This shows a list of active ICO upcoming ICOs ended ICOs.

So these have recently ended.

For example, Souni ended on 5th December 4 December.

All that stuff right now.

Whichever active ICOs are there, you can go and start researching more about it.

How to do an ICO Research again. Let me know.

In case you want me to make a video on that, I'll be happy to do it.

But if you end up analyzing good ICOs and if you are able to take small bets,

even if you invest, let's say Rs1000 on it.

It can definitely turn into 50,000 easily. Right.

From that perspective, it's really fun, but also do it with the intent that hey,

you can lose that Rs1000 again saying it over and over and over again.

Please do not consider this as an investment advice.

I'm just teaching you whatever new stuff

is also coming out in finance, it is important for me to put out

that information so that you can study it and take advantage of it.

Okay. So if you analyze all these active ICOs,

you have to go and study it cost and then take bets on it.

But let me show you two, three more magical things.

For example, these are recent ICOs.

Now, this is super recent.

This is in December.

So I'm trying to find ICOs and have a recent price history.

Right. So these were launched not too long ago,

but also these are not like Super Super recent also.

So let me take a look at any random points

and let me show you the price history around it.

So let me pick up Cryowar. Right.

So the metaverse narrative is picking up

and Cryowar is an NFT play, and it I showed on 12th November 2021.

Right.

So let us just quickly go and look at the performance of Cryowar.

So here is the entire price action for Cryowar, and it got listed in mid

November and by end of November it creates.

Right. So $1 became $3.

If you would have put Rs1000,

it would have become Rs3000 within less than a month.

So it already made a peak.

Then it started falling. Right.

So you need to understand the point that get out of the ICO once it has had

enough so very important concept for you to understand what ICOs are.

This is high risk, high reward strategy.

It's very OK to invest a little bit

of money and take bets on it because this can give you really high returns.

But please do your research in terms of identifying ICOs.

Now I will make a separate video in case you want how to apply for ICOs.

I can show you that not a problem, but to apply for ICOs or even before pre

ICO stage, you need to buy membership of different idea pads so the membership

is not super expensive depending on the idea pad in which you are investing in.

But it will cost you a little bit of money.

So please keep that in mind.

But I wanted to show you two very different strategies.

One safe strategy via bond.

You can use Golden Pies platform to do that.

Check the link in the description box.

Wonderful platform, India's number one platform right now.

And if you're looking for a high risk, high reward type of an equation,

you can definitely consider applying to ICOs super interesting field right now.

People are making insane money on it.

So it is worthwhile to invest a little bit of time in terms of researching it.

More now comes the final stage. You would see a shirt.

You have shown two things at completely

different opposite spectrum, one bond market, one crypto market.

But I am a stock efficient. What should I do?

I want to turn my Rs1000 into RS5000 Rs6000.

What is my strategy?

Okay, so here I will give you a very quick snippet.

So your option one is identify Penny stocks and invest in it.

And hopefully those Penny stocks will become multivariators going forward.

Should you do it? No, I would rather say that.

Go with ICO.

That in my opinion, is safer. Why is that?

That's a very interesting question, because what happens in stock market is

that there are players, old players who know how to manipulate stock markets.

You will get paid right.

News will come out that bad things will happen.

So I would not recommend that.

Second is that in the stock market, what is a better approach is to do

something called a value buying or deep value buying.

Now what do I mean by value buying or deep value buying?

Now, Mr.

mohnish pabrai is an expert at doing value buying and deep value buying.

I also sometimes buy some stocks which are value stocks and deep value stocks.

So let me show that to you. Why?

An example that I've used in the past, it's a Punjab National Bank.

If you take a look at the entire price action for Punjab National Bank,

you will see that the stock has been trading at approximately 41 Rs42 right now

and in 2018 it used to trade at approximately 200.

And here we are at one fifth the price.

Now what you do is that you do a fundamental analysis of this stock.

For example, you can take a look at what rate as the revenues grown.

So the revenues are hitting at their all

time high, the profits are hitting at their all time high.

And one investor right.

Let me know in the comment box which investors exist that if the stock

has its highest revenues and highest profits and its stock prices not trading

at its highest levels, you should probably go and buy that stock,

which investors said it has said it multiple times on my videos.

It will act as a confirmation point for me

that you are getting value out of my videos.

You are listening to it, making notes.

So do drop in your comment on that.

So this is what I mean by value by and deep value by.

This is fundamental investing.

If you learn about it, then of course,

you can turn your Rs40 into RS200 in a very quick fashion.

All these are different strategies that I am discussing with you.

Hopefully you will get value out of it.

Please slice and dice it as per your

understanding, as per your investment style, as per your risk capital.

This is not an investment advice that hey, go invest in option A versus B versus C.

You need to mix and match, so I hope you enjoyed the video.

Please give it a thumbs up.

Share it with your friends and subscribe to this channel.

I will see you the next time.

Bye.