18 F need advice

[ladyw]

So I(18f) have saved around 6000 inr. I come from a middle class family so I want to start learning more about finances. I have saved all this money and i want to invest some of it just for the sake of learning how to invest money. How should I start?

 

[thistle0sifter]

@ladyw Good to know that you want to start your investment journey so early in your career.

This should help:

https://www.reddit.com/r/India_Investments/comments/16r04rb

 

[ladyw]

@thistle0sifter Thankyou so much

 

[resjudicata]

@ladyw 6000 books aur koi skill learn krne me laga

 

[koifishcross]

@resjudicata Cengage books are good

 

[ladyw]

@koifishcross Well I am preparing for jee rn so I would learn skills after I am done with the exams and I usually find books online. Also buy used books for cheaper.

 

[resjudicata]

@ladyw unrelated to your question but how's your prep going on? i myself am a 2024 aspirant

 

[ladyw]

@resjudicata Bas dheere dheere smajh aaraha hai ki jee ke aspirants phaansi kyu lagate hain

 

[resjudicata]

@ladyw yes, JEE was never supposed to be a selection criteria, your incompetency at some parts might make you lose your best department at the college you're aiming for, regardless keep working hard and don't kys, never worth it

 

[br4nd0n]

@ladyw In that case, why not wait till the exams are over to learn about personal finance, unless of course you look at it as a break from the studies?

I understand the importance of starting early but even a year later in your case is not going to matter, especially if you're going to spend that year on building a foundation for your career.

 

[yying1]

@ladyw Kuch bhi kariyo par wo Finance with Sharan wale bande ka course mat lena. Bc ek number ka fraud aadmi hai. Pura do ghanta bataega ki uske paas kitna paisa hai aur show off karega, kuch informative nhi bataega. 2 ghante baad jab seminar end hone ko hoga to bolega ki agar uske tips chahiye to ek dusra seminar join kro jiski alag se aur 5000 inr mangega. Usme bhi kuch khas nhi bataega. Normal chize jo finance books or bas ek google search se pata chal jae.

 

[toobam]

@yying1 How to cancel his subscription?

 

[astroblema]

@ladyw Kudos to you for this great start.

Just for learning sake, open up an equity account with Zerodha.

Once the account is openned. Transfer this 6000 into it.

Then

Daily, just once a day, log in and buy just 1 unit of "SETFNIF50" (Read up about Index funds Book: Commonsense Investing Index Fund By John Bogle).

SETFNIF50 is SBI's Nifty50 Index funds.

Only 1 unit because you are learning, and it costs just about Rs. 205 a piece and

daily because you will notice averaging, and

only once a day because it is not to distract you from your regular daily life.

This is my kind of SIP systematic investment.

Stick to this regime for some time a year may be while also keep learning about investing

 

[ladyw]

@astroblema Thankyou so much

 

[astroblema]

@ladyw Just wanted to add one more thing. There will be ups and downs in the unit price, which will affect your total investments, respectively. Do not panic in downs. Continue the regime.

Edit:
Also, Rs. 6000 will not last you through the year. At the current price, by this method, you will roughly be able to get 20-30 units in total. That is 20-30 days your capital will last. (6000/200)=30

So, when I say continue until a year, it is not a binding. It is ok if you can't put more.

But continuing longer will put you into a habit of investing, and that is the purpose of this excersize.

The money you are putting here, you should stay invested for a long term.. 5, 10, 15 years. Do not sell. Do not panic and sell. Hence, donot put the money that you need in short term..

 

[margaretjankowski]

@astroblema Hey is this also available on Groww?

 

[astroblema]

@margaretjankowski I have not used groww, but since SETFNIF50 is an exchange traded fund, it should be available.

 

[margaretjankowski]

@astroblema Can you also please tell me where can I learn more about how an etf works?

 

[astroblema]

@margaretjankowski Read this book:
Commonsense Investing with Index Funds By John Bogle.

He is the person who introduced Index Funds.

ETF (exchange traded fund) is investing in index funds just like shares in stock market.

 

[margaretjankowski]

@astroblema Thank you!