Investment cues for students | The Money Show

good evening you're watching the money show right here on 18 now and as promised here's our very special segment lined up for you we have with us for roses it's deputy CEO of anunnaki Private Wealth Management and I have three very young students right here with me pros maybe makes us feel a little older but yes I have with me on my left student of HR college municipal devala then I also have with me pre Anshu and me Oh three and here J – ah so thanks to all of you for joining us and for Rosa you know we often have conversations about how you have to start investing young so I thought that instead of asking them to watch ET now might as well bring them to eat you know and drill that point into their heads itself so let's start first with the topic or at hand and that is investing young yes you don't have money you just are probably relying on you know salary and maybe on jobs here and there done for your new boy or a relative or for that matter very generous grandmothers and grandfathers as well in many cases so pharoah's tell our students out here how is it that they can go about investing in mutual funds and if it is the right mode of investment for them of course starting young like you rightly said mabini is very very critical so it's very expensive to delay this decision for example if you invest a thousand rupees for 30 years it compounds itself at a at a nominal rate of 13 14 percent to fifty four lakhs now on the other hand if you said let me relax for five years I've just started working let me not not not be such a hurry and you delay that decision by five years the same fifty four lakhs transforms itself at the same interest rate to 27 lakhs so the cost of the five-year delay is 50 percent of the corpus you could have accumulated for your goal so it's important to start early second mutual funds is it a good platform for you see do you do this for a living no you have to finish your study you have so much to do right so you always when you have something which you don't have time for the best thing is to outsource it the mutual funds become a platform for you to outsource this to somebody else who does it for a living the mutual fund is the best platform for somebody who's not doing the for a living managing their own money and I'm sure you're not doing that is where you are where the college's day in and out so make sure that you use a platform where there's a professional doing this job more methodically rather than arbitrarily in a transactional fashion okay all right and you know for those of course that they have a ton of questions as well you know that they want to ask you it's a golden opportunity guys to shoot away Marissa let's start off with you I just roughly tell us a bit about yourself and what's the question you have do a lot I'm from KC College and I'm an aspiring see ya aspiring CEO so I think you already has either provider money matters any which ways what's your question for pharaohs yeah my first question was at this age what is preferable more it is is it trading or is it investing see it's like I'm sure you've come to college you would have graduated from your soul level the second PUC and then before which you would have finished your 10 so everything has its own time and a learning curve so you can't ever start with trading trading is a sophisticated investing mechanism so you always start investing and then graduate to trading and even if you get to trading it's not going to be with all your money right because trading brings more risks or to answer your pointed question Murtaza you start out investing use mutual funds then you get into buying stocks yourself and then graduate into trading that will be the chronological order of a life cycle of an investor just like when you do see a you start off first with MCQs and then you graduate to giving full-fledged papers right just consider it that way okay I next we have a prion shoe hi Creon sure tell us a bit about yourself and what's your question for Perot why this is shouldn't open to the College of Commerce and willing and I'm willing to pursue CA in the coming years so my first question is so how much would I invest in order to get an average rate of 10 percent in diversified equity fund c1 is how much should I invest will largely depend on not the return you expect on the goal you wish to meet now for example people can save for different things at least at a young age I'm sure you're not thinking of retirement you think of buying a bike for yourself buy a phone for yourself so the rate of return you wish to achieve will depend on how much time you have so point one how much money will you need when will you need it and after you've decided this then you come to an asset a location of how do you use equity debt and different vehicles to achieve the same goal so let's say hypothetically you wish to save money one lakh rupee after five years whatever you wish to do with it then you will have to work backwards and say what is the monthly investment you will need so if you if you need to save one lakh approximately you'll need a two thousand five hundred rupees per month investment now that you have arrived at the amount then you need to arrive at which mutual fund to buy so diversified equity fund as the name suggests is a platform which invest money in different kinds of companies and in that if I have to also go to the extent of recommending schemes for you let me recommend two schemes for you a reliance large cap fund and a mirai as set large cap fund would be a good start point for you to save and if you want to save 5 1 lakh after 5 years then start with two and a half thousand rupees as IP so what do you want to save for pre Anshu this only so you have suggested me to funds so I would I was asking that should I prefer HDFC ok so see what happens is there are different mutual fund companies there 42 different mutual fund companies in India who offer the service of professional management to you HDFC being the first or the second largest at different points in time so of course it's a very good fund house now in HDFC there are several schemes which one to choose is the most important because every scheme would have a different performance if you want to choose HDFC then their best fund according to me would be HDFC mid-cap opportunities okay so I hope you've taken at least a mental note of all of those funds that euros has sent in and of course you can always tune in to the money show for any of your advice okay here are up to you now tell us what is your question for fedora message it WA and studying commerce and HR College of

Are Factor Investing and Smart Beta Identical? | Nicolas Rabener – Factor Research

Factor Investing has become more
popular over time, especially since the financial crisis
simply because investors realized that there is actually very little Alpha and most of it is just called systematic beta or factor exposure. Of
course investors do want to achieve outperformance so if you're benchmarked
against that S&P500. and the S&P500 is up ten percent
it would be great if you have eleven percent. Now finding fund managers that
generate that extra 1% that you want… that's actually quite challenging.
Factors have shown over the long term, especially if you combine several
factors, that they do allow to outperform an index and that's why they
have increased in popularity. They're the only source of returns that do allow to
outperform the index. It doesn't matter which asset class. One way of explaining
why factors work why they should generate excess returns is that they do
represent risks. And you get effectively compensated for holding them, once
in a while the risk actually takes place there's a drawndwn but over a long time you
can harvest those returns. Factor investing comes from the academic world versus
smart beta is a practical application. Smart beta is nothing than factor
investing in a long only form. So effectively what companies like Blackrock or Vanguard do is: take the S&P 500 and tilt it towards
certain factors. Someone wants to take advantage of the value factor? They can
look for a 'Smart Beta Value ETF'. It's very important to note that there's
a big discrepancy between theory and reality. So what most investors who are
interested in factor investing do is: they tend to read academic research or at least
read what other people are summarizing about the research. What you see is
those returns being published in journals and for example the value factor
giving XYZ present return. Now what unfortunately has happened is that you take the
investment products that most investors have access to, such as retail investors in smart beta ETFs. The returns they get out of those are often a fraction of what you see in academic journals so it's a big disconnect between what people are
reading and what people are getting and that's something worth highlighting. The
opportunity set that investors have especially on the retail side is just
so much more narrow than what you have on the institutional side, where you can
replicate structures that are more similar to what you read in academic

Stevie's Scam School: Investment scam

Finally, you can work from home,
and make hundreds of dollars a day. Wait! This could be a scam. Welcome to my school.
Stevie's Scam School. Yeah, great. Hello. My name is Stevie,
the reformed scam artist. I'm here to teach you how to avoid being scammed. On with the lesson, shall we? Today I present you with
the investment scam. This scam's a shocker, so listen in. First I'll put up a cheeky ad
about a little get-rich-quick scheme. Most of the time, it's a membership site
or a piece of software guaranteed to correctly predict
the outcomes of sports or share trading. Guaranteed bets? Yeah, right! When you call, I'll put on my charm,
and rattle off all kinds of gobbledegook. Hi. Yes, I've got this amazing new software. It predicts results of horse races based on
historical trends and track or horse conditions. Look, you'll make loads of money, I promise… …none of it true. I even used to send out fancy little brochures
and set up websites with loads of graphs and pie charts to get you all excited
about this little investment opportunity. Can't blame ya. A bit of pie gets me excited too. Next thing, you're losing money on bets based
on the very expensive software's predictions, and realising that the software doesn't even work! And I'm galloping off into the distance…
with all your cash! See ya! So don't let strangers
pressure you into investment decisions. If you're interested in an opportunity,
ask to be sent some information first, and always seek professional advice. You see, at best, sports betting programs are gambling,
at worst, they are scams. Don't put your money into them. And if you're unsure about any
other investment opportunity, check that the company is registered with ASIC or is
a licensed financial advisor at You know, there's just is no such thing
as a get-rich-quick scheme. Seems I'm the only one getting rich off them. Well, the old me anyway. I can't even afford myself
a proper ride these days. Heh, hmmm, heh, hmmm. Stevie's Scam School. Yeah! Nice!

From $100 to $75 Million: Is Bitcoin a good investment?

what's up you guys it's Graham here so if you've looked at the Internet in the last few days I'm sure you've seen an article out there that says if you had bought $100 of Bitcoin seven years ago you would have over 75 million dollars today and Bitcoin is a topic that people get so opinionated and so heated over people either love it or they hate it and I think it's the worst thing ever I am somewhere right the middle I mean I don't really have a preference for or against Bitcoin so I'm going to be sharing my thoughts in my unbiased opinion but whether or not Bitcoin could be a good investment so if you guys don't know what bitcoins are seriously go to Google look it up because it's some really interesting stuff but essentially bitcoins are a crypto currency that was created in 2009 and they're earned by computers that solve these like really intense algorithmic codes and when the computer deciphers a certain string of code its rewarded in the form of Bitcoin which is a payment so some of the value of Bitcoin is partially derived by the fact that there are only a finite amount of them that could ever be mine essentially there are 21 million bitcoins out there what's their own mind they're all gone that's very similar to the US dollar by the way when it was backed by the gold standard because there's only a certain amount of gold that can be mined from the earth so what I find pretty interesting too about bitcoins is that the more bitcoins you mind the harder it becomes to mine the next one essentially the codes just get longer and more intense for computers to solve which means it becomes a lot more time-consuming and labor-intensive to mine more bitcoins so the first million bitcoins out there going to be easier than the next million bitcoins which are going to be easier than the next billion bitcoins so the more bitcoins that are in existence means the algorithms become progressively harder and harder to solve which means it just becomes way more labor-intensive to mine more bitcoins and the harder becomes and more labor-intensive it becomes the more people have to charge for the value of the Bitcoin because the more time they spend on it okay so we get all of that but this Bitcoin actually have any like real value and my answer is somewhat like a yes and somewhat unknown somewhat a yes because people put the real time and the real resources and money into mining bitcoins because they can ask for such a value where it make sense if people are spending a lot of time and a lot of money mining for these things they need some sort of return on investment if these bitcoins were selling at 3 cents a Bitcoin it wouldn't make sense for any of these mining facilities to ever be in existence however if it's trading in $1,000 $1,500 $2,000 a Bitcoin it definitely makes sense for people to invest a lot of time a lot of resources mining for bitcoins so yes there is some type of value for what people are willing to invest mining for these things and plus some more retailers and the more people who are willing to embrace and accept Bitcoin the higher the price will be because people feel more confident in it there's also a bit more demand and perceived value over scarcity the fact that there's only 21 million of these things that are ever going to be mined so therefore people are going to be worried about like another 20 million bitcoins coming into existence or anything dealing with like inflation by putting in more bitcoins so in that respect I mean there is a little bit more value there I mean this isn't much different from the US dollar where we give $1 the value of one dollar because everyone associates that as being worth one dollar except one dollar of US currency is somewhat subject to government manipulation inflation and regulation now while the US dollar isn't backed by gold anymore it is backed by our entire US economy everything it produces with laws that we have to abide by that you regulated by the government now for better or for worse the US dollar doesn't have its entire value just because we give it value it has a very strong foundation backed by an income and product producing nation now Bitcoin on the other hand doesn't really produce anything its value is merely what we the people associate it with and of course the benefits of having a decentralized currency without regulation now with Bitcoin there is no long withstanding country behind it it doesn't produce anything and it doesn't supply anything this is one of the main differences I see between the Bitcoin and the US dollar but on the other hand Bitcoin does have this advantages because it's not subject to any sort of government control or manipulation it's completely decentralized it's also totally anonymous and of course you don't have to pay me those nasty foreign transaction fees however there are no refunds it's not like you can charge something on a credit card and then dispute it later on with Bitcoin it's just as good as cash once you give the other person money it's up to them to refund you or give any of that back to you there's also very little regulation if you have your bitcoins hacked or stolen from you all right so we get all of that but it's Bitcoin actually a good investment you might biggest concern is that until bitcoins usage starts driving the price more than speculation does it's going to be very hard for me to ever call this an investment I call it speculation instead there's nothing wrong with calling this speculation and there's nothing good or bad with speculating anything for that matter a lot of people speculate real estate they speculate penny stocks Bitcoin can be one of them but bitcoin is so volatile right now and that's why I call it speculation obviously this is a very high-risk high-reward strategy if you invest or you speculate in Bitcoin obviously the payout could be huge or you can lose a significant portion of your money it wouldn't ever recommend substituting a long-term proven investment strategy with Bitcoin I think Bitcoin definitely has its place if you want to speculate something go ahead with Bitcoin on money that you could afford to lose or you can afford to gamble with knowing that there's a chance that you can lose a significant portion of your money if you're ok with that and you can afford the losses you can afford the swings and you can just write it out and see what happens then by all means maybe Bitcoin is a good investment for you but if this is something you're thinking like okay what I'm 50 years old I want to retire up something I'd be very hesitant to ever recommend Bitcoin as a sound investment now going a little bit off-topic here but I personally believe that Bitcoin will be around for the foreseeable future from what I've noticed you that I find pretty interesting is that usually people in economic turmoil go to gold and precious metals because it's always been the safe haven of investing that no matter what happens if stocks go down usually gold goes up if inflation shoots up gold goes up as well but for what I've noticed a lot of younger people instead of going for gold they're going for Bitcoin the less face they have in the US economy or there economy or in currency at all for example instead of going for gold which has been the previous safe haven investment they're going for Bitcoin so my prediction is that Bitcoin will probably be around for quite some time realistically it will be around for quite some time but I see this as almost being something that will eventually at some point in the future all of the lines very closely with goals and that like I said if there's any economic turmoil or people are hesitant about the market people will turn to crypto currencies or specifically Bitcoin for their safe haven investment it'll just be seen as not something to speculate and like triple your money in a week but it'll be seen as something eventually way down the line of a safe haven for people to put their money now this is wild because I would never do this now there's no chance in hell I'm ever putting my money in Bitcoin as a safe haven investment I'm talking if this thing is around for like 20 or 30 years from now if YouTube is even going 20 or 30 years from now and by that time I would be like 50 something years old plus by the time this is all happening but like this is my wild future prediction if this ever happened that's what I think it will go to if Bitcoin survives that long and by that time too it's value will be driven more so by trading than it will be by speculation and that's the problem with it right now is that it's being so heavily speculated that I don't see it as a solid investment right now like I said if you're cool with speculating something Bitcoin could be fun but don't do it with any money that you can't afford to lose and Bitcoin should not replace a long term retirement investing strategy Bitcoin is exactly that it's just speculation you have to treat it along the same lines as you would any other sort of speculation training so as always you guys thank you so much for watching I don't usually touch on topics of like Bitcoin and stuff like that but I've seen so much media coverage and so many people talking about it lately I thought I may as well just add my own perspective on it now some of you guys I'm sure are way more knowledgeable and piñon ages than I am about this so if you are comment down below let me know your thoughts and your perspectives I'm totally open to reading everyone's thoughts and maybe I learned something from it as well to notes so if you haven't already if you're interested in this channel click Subscribe I've been releasing a lot more videos coming up definitely want to stay tuned as those also feel free to add me on Instagram add me on snapchat you want to stay tuned with that and that's it you guys thanks for watching and until next time

Best Place To Invest Money: How To Save Money | Better | NBC News

if I asked you right now what are you gonna do with the next hundred bucks you make would you know would you know that part of it should go to this expense part of it should be saved part of it should be invested and if I asked you of that part that you are investing where should it go that's what the ladder of personal finances it it's designed to help you know exactly where your money should go when you're investing it a lot of people say I can't start investing until I'm rich that's the wrong way to look at it in actuality the way that you get rich is by investing have you ever been to a party where they have those champagne glass things you know some waiters pouring it in the top and then it fills up the first glass and it goes to the next glass that's exactly how you want to think about the ladder of personal finance first fill up the first account and if you have more money left over go on to the second and eventually you will have more money left over to go on to the third layer and that is the way to visualize what to do with your accounts let's start with the first rung on the ladder of personal finance if you have a 401k match at work you've got to do it what that means is for every dollar you put in up to 3% of your salary they're gonna literally match it that's free money how do you find out if you have a 401k match just ask your HR person and if you do I want you to contribute up to as much as you get from that 401k match and the second rung on the ladder of personal finance is pay off your credit card debt think about your interest rate on your credit card debt for a lot of people it's 15 sometimes 19% what does that mean by comparison think about how much money you can make in the stock market over the long term you'll make about 8% 8% is really good and you're paying 15% in credit card interest that's insane gotta make a plan to pay this off so key steps here number one write down how much debt you have and write down the interest rate number two make a plan to pay it off and automatically send that money to your credit card every single month in rung number three of the ladder of personal finance I want you to open up an IRA for a lot of people a Roth IRA makes sense if you expect taxes to be higher later on in life what this does for you is it allows you to open up an investment account that gives you tax advantages and the tax advantages here are massive let me give you a simple example when you invest through a Roth IRA that is an account if you send after-tax money to your Roth IRA we pay taxes on this money it's sitting here in a Roth IRA and it's just saying like what do I do that's where you get to invest in now guess what happens any money that you now make you will not pay taxes on the gains think about that this is free tax advantaged money got to do it okay now with a deal like this it's almost too good to be true so there's a limit on how much you can contribute and you can find out the limit on your contributions by just googling Roth IRA contribution limits the fourth rung of the ladder of personal finance is to go back to your 401k and to max it out why because here you are still getting tax advantages but they're not quite as good as a roth IRA that's why I have you do your IRA first and then come back to your 401k now there are also contribution limits on your 401k you can find those by googling 401k contribution limits but in general you're going to get good tax advantages in your 401k so max it out as far as you possibly can run number five of the ladder of personal finance is something called a health savings account this is actually one of the most surprising and best ways to invest that very few people know about if you are eligible for an HSA through your insurance you can open it up and they're going to give you a debit card which you can use to spend on qualified medical expenses but it turns out that the money you contribute can actually be invested and the tax advantages are massive and HSA is one of the best investing opportunities you have if you are eligible for if you're not eligible for a health savings account I have rung number 6 on the ladder of personal finance and that is simply to open up a taxable investment account it's just a regular old investment account you can open this up at Vanguard fidelity Schwab wherever you like and you contribute as much as you possibly want to and that money grows over the long term once you do all this you're gonna have one big end State and that is to feel amazing every single day you wake up you're going to know exactly where your money should go it's gonna happen automatically and you're gonna feel free free to invest in the things that you love free to never have to worry about lattes and free to create your rich life hey NBC News viewers thanks for checking out our YouTube channel subscribe by clicking on that button down here and click on any of the videos over here to watch the latest interviews show highlights and digital exclusives thanks for watching