This episode is also available as a blog post: https://xlnctrader.wordpress.com/2021/06/09/retirement-plan-mandatory/ Just Remember : We cant work our entire life Income is of two types : One is Active Income & the other one is Passive Income. Active Income ➵ which we will get by working Hard like salary Passive Income ➵ we will earn income even while sleeping like Interest on Savings A/c ,FD,Govt. Securities,Mutual Funds,Direct Investments. If you Invest your Money in Savings account,We will get 3 – 4 % Interest Rate. But We already Discussed in Previous Post that Inflation is 5%,This states that we are loosing 1%,Which is not good. If you Invest your Money in Fixed Deposit’s. We will get 7-8% Interest Rate i.e. 3% more than 5% ,Which is better than investing in Savings account. If you Invest your Money in Government Securities, We will get better Interest Rate than Fixed deposits. Also we will get Tax Benefits, Which is also good. In Mutual Funds , Fund Manager Invests on behalf of us and generate returns. ⎆Mutual funds are of two types Index Mutual Funds and Normal mutual funds. ⎆In Index MF’S, Fund Manager no need to Check Day to Day for Companies. ⎆In India, we have two major stock exchanges one is NSE and the other one is BSE. ⎆These Exchanges Fixes the companies in the index like NSE NIFTY 50 ,BSE Sensex ⎆we can check The Fund Performance through CAGR i.e. Compound Annual Growth Rate % Direct Investment ( in Stocks) ⎆In Share Market ,You frequently hear tempting statements like this : (Here I took e.g. of ITC Yearly Share price data from Internet) ⎆If you invest one lakh (1,00,000 Rs.) in ITC in Year 2000, you will get 5020 shares, which grows to ↝10,96,000 Rs. in 15 years,if you keep them as it is . Do not fall in this trap ⎆Lets See other E.g Reliance Communications Yearly Data ⎆ If you invested one lakh(1,00,000 Rs.) in RCom in Year 2015, you will get 1133 shares ,which dropped to 1756 Rs. in 5 years i.e by 2020. ⎆So,it is important to check results of invested companies regularly Don’t blindly invest In R com ,If you put Stop Loss,You at least can minimize the losses instead of loosing total investment. R com not fall in a single day/month/step by step dropped. So, check performance of invested companies regularly and take actions accordingly. Just Remember,Everthing is related to Stock Markets If I do Jio Recharge ⎆ Jio Revenue Increases ⎆ Share Price Increases So,Select Companies perfectly and invest DO Follow Our Blog for Future Updates
