🍰 SIP Vs Lump Sum 🎂कौनसा बेहतर? Mutual Fund Investment | SST Ep 01 - YouTube

Hello everyone, welcome you all to the brand new series of Labour Law Advisor

which is named SMART STOCK TIP.

If you are interested in investing in the stock market or have already invested in it.

In both cases, this series will prove beneficial for you

because over here we will tell you what kind of little changes can make in your investments

with the help of which you can make huge profits.

So today I will discuss with you the two ways by which you can put your money into mutual funds

i.e., Lump Sum vs SIP

SIP Means Systematic Investment Plan. Many people ignore these both concepts

but think if I will tell you that one out of these two ways can help you in making at least 15-20℅ more on your returns

and if you are putting money by using other methods then you can lose these returns.

So are you interested in knowing this,

If you are interested in knowing how it is possible & which plan is better for a different person

so watch this video till the end then you will understand it.

If you don't know this then let me tell you that to invest in Mutual Fund you don't need to open Demat A/C.

In today's era, you can start such investments through your phone.

The App which I use is KUVERA App

the big benefit of using this app is it is free to use,

& 2nd benefit is that through this App I can invest the money as per my goals.

If I selected that my goal is for saving money for my retirement

So this app based on my income & expenses will recommend me different schemes of Mutual Fund

so that I can start my investment from today itself

then after a given time, my goal will be achieved.

And after considering future dearness it will tell you the realistic goals

so that you can start with a real investment plan.

The link to download this App is given in the description below

Or if you type the code i.e., LLAYT then you will get 100 free points

which you can use for In-app purchases.

Let me explain this to you through an example- there is a man named Ramesh who is having Rs.60K

and he wants to invest Rs.60 K in Mutual Fund.

If he chose to invest the whole of Rs.60 K in Mutual Fund at one time only

or if he chose to invest Rs.30 K & Rs.30 K in 2 different Mutual Fund at one time

Such type of investment is known as Lump Sum Investment.

This means he put all his money at one time in Mutual Fund.

But if Ramesh is not doing this & investing Rs.5 K monthly in any Mutual Fund

then it is known as the Systematic Investment Plan which is a monthly investment.

Let's consider if a person is putting Rs.5K monthly then 10 units are allotted to him which means 1 unit= Rs.500/-.

Just like in the case of the share market where before investing you look at the price of a particular share.

Similarly when you invest in mutual funds then you get particular units of Mutual Fund

the value of which is known as NAV which is a price of 1 unit of the mutual fund.

In our example, that price is Rs.500. Pay attention in the case of the share market the way price goes up & down.

Similarly, in the case of Mutual Fund, the price of units goes up & down.

Suppose Ramesh decided to invest his money & he decided to invest in Mutual Fund

& he also decided in which Mutual Fund he will invest his money.

For example, let's take Aditya Birla Equity Growth Fund.

Now he has to decide whether he wants to opt for a Lump Sum investment

where he will put all his money at once

or he can opt for SIP where investment is done monthly.

Now he has taken the decision where he wants to put money in Lump Sum.

I am telling you this example from 1st Jan 2018 to 31st Dec 2018

In this period, we have tracked the price of Aditya Birla's Equity Growth Fund

& collected the data for you people.

Now suppose Ramesh is investing money in Lump Sum so he will get the opportunity only once in this case

& on the day where he made this investment was that day of 2018 where the Mutual Fund's one unit

was very less and that day was the 26th October 2018.

On this day, Mutual Fund NAV was Rs.643/- which is the lowest of 2018.

If at this unit price, Ramesh is investing Rs.60 K then he will get 93.2 units.

Now suppose he is very unlucky & he chose that day of 2018 when the NAV of Mutual Fund was at its high.

Means 31st August 2018 where he will get only 79 units of Birla Equity Growth Fund.

So you can see if his luck is on his side he chose a good day for investment then he will get 93.2 units

& if he chose a bad day for his investment then he will get only 79 units.

Means between 93 units and 79 units there lie a loss of 17% if he invests at the wrong time

& 17% is not a small deal.

If Ramesh remain invested in this Mutual Fund for at least one year

then also there is no guarantee that he will see a gain of 17%.

But if you have timed the market on the day of purchase of Mutual Fund then would have gained the profit of 17%.

Now I have told you it's important to time the market but it's important to know that it is not practical.

Many good stock market experts fail to time the market.

So here luck also matters but as a smart investor one should not rely on luck.

So can there be any method where without relying on luck one can earn a medium return on their investment &

you will not lose 17% & will also get the midway to get through this.

So let's look at this Mutual Fund last year graph means of 2018.

Watch this graph for 1 minute & tell me will this graph go up or down from this point

think in your mind & if it takes time then pause this video.

Now you have understood that it's difficult to predict this

so friends what you can do which will help you in purchasing Mutual Fund at low prices

so that the return which is about to get will not be eaten up by the market high price.

This problem will be solved through SIP which is a 2nd way of investing money in Mutual Fund.

Let's come again to Ramesh.Now suppose Ramesh he does not choose Lump Sum

& puts Rs.5 K on the 7th of every month which means he purchased Mutual Fund 12 times in a year

where he got 86 units of Mutual Funds

which is much more than 79 units so in this way by using SIP Ramesh can beat the market dynamics.

And in this manner, he will not fall prey to high market price because he is having 12 opportunities in a year

to buy a Mutual Fund & in all 12 opportunities Mutual Fund will be at its high there is a very less probability

so there is a lot of benefits of SIP which you have seen through one example

that it can save your earnings from being lost.

Other benefits are SIP helps in avoiding market highs & lows

and helps in getting Mutual Fund at a good average price which in itself is a big benefit

like we have already seen in an example that with this practice you can save a minimum of 5 to 6℅ on a return.

2nd point is that you may not have a big amount like Rs.60 K to invest

or if you have then also you don't want to invest such a big amount

because you want to maintain your liquidity but you generate monthly income either from salary or business.

So you can invest some percentage of that income & if you made SIP then you can make a disciplined investment.

And at the end of the year, you would have invested a very good amount.

3rd benefit is that you can get the motivation for investment anytime.

I can say this with a guarantee that people who are watching this video

out of the many had not made their even 1st investment in Mutual Fund also.

It can happen that after watching this video you will get the motivation for making investments

but if you want to invest in a lump sum then you have to solve many other problems

because after watching this video you would have understood the problems in lump sum investment.

Now if you get motivation for investment then you have to waste your time & energy

in studying the Mutual fund that you want to purchase whether it is available at a high price or low price.

And it may be the case that after doing lots of research you have made your investment in a lump sum

& after that also there is no guarantee because the prices of a mutual fund can fall the very next day.

SIP will solve this problem & you can start your SIP investment.

For starting your investment you can download the KUVERA App

as I have already stated at the starting of this video

and you can automate your monthly SIP which means an amount will get deducted from the bank on a set date.

If you are afraid that if your bank does not have funds then you will be charged with a penalty

then this is not there. It may be the case you have to pay Rs.5 to 6 as a bank charge

but you will be levied with no significant penalty.

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because very soon we will update very important videos.

Very soon we will meet again through our new videos. Signing off team Labour Law Advisor.

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