Beating Index using Margin - Gambling Insights - Episode 3 (தமிழ்)

[@InvestmentInsightsTamil]

Related Episodes: Margin explained: kzbin.info/www/bejne/o33bmZmflJWkgbs Financial Leverage: kzbin.info/www/bejne/gKvKdqSoqc2snZY Stocks Portfolio: kzbin.info/www/bejne/gZWmpGZ7jKx9rLM Investor Maturity: kzbin.info/www/bejne/l6Xcd2aHg8iKrrM Beginner mistakes in stock market - Episode 1: kzbin.info/www/bejne/l6ekfJKia5mco9k Beginner mistakes in stock market - Episode 2: kzbin.info/www/bejne/jHzQepehbJJmn6c Compounding in Business: kzbin.info/www/bejne/oGLUYmZjgLOfha8

[@jayakumar1561]

Yesterday saw your first video, Today watched all the videos in playlist. You are a Magic man..

[@InvestmentInsightsTamil]

Welcome aboard!

[@ramaiahsankaranarayanan8208]

அற்புதமான விளக்கம். இந்த மாதிரி விபரமாக கேட்பது இதுவே முதல் முறை. மிக்க மகிழ்ச்சி ‌ நன்றி.

[@Ravikumar10T]

Hi Vijay Sir, Good morning, Last 6 months we are following your channel and investment idea. Thank you so much for wonderful knowledge sharing and more strategy's, it's really good information for my family wealth creation and understanding the basics of different investment. Kind request for take few session of stocks hedging and how to protect stocks loss in down market, how to ready or prepare psychologically for long term investment (Eg: Assume Investment period more than 30 years), Every time market goes different strategies and how to follow this changing techniques. All the best for your videos and we are planning to follow your channel every week.

[@aravindhantamilarasan3527]

Good info 👌🏻 Thank you Vijay Mohan sir 🙏🏻

[@prakashkk2771]

Thanks a lot fr ur detailed explanation. Observation on indian stock brokerage margin trading . 1. You can't keep the margin trading forever there is a time limit. Vary from 180 days to 365 days 2. The interest per annum vary from 15 to 20 % per annum ( so index must beat more than this percentage in a year ) 3. Only possible on bank linked brokerages ( like icici, axis , hdfc ..) so high brokerage charges on each buy n sell off stock. 4. Taxation on profits to be considered. Friends please do take all this consideration before going for margin trading even in indian index.

[@InvestmentInsightsTamil]

In my opinion, if the margin interest is more than 6%, it is not worth the risk for considering that at all.

[@prakashkk2771]

@@InvestmentInsightsTamil Yes simply said .. got it . Thks

[@dhanaa1556]

Weldone Vijay, nice explanation

[@MohanRaj-lw1px]

Awaited fr this week video.. got one before I sign off tonight

[@merovingiean]

At least from Modern portfolio theory if you are using margin loan you are operating on the risk reward line of the tangent portfolio ( aka index fund). In that sense using margin is better from a risk adjusted basis compared to buying risky individual stocks. So I dont think this is gambling. Also possible to do a video on why cap weighted index is good vs equal weighted index. There is a nice theory based on MPT using market equilibrium argument. Would be good to see that in tamil.

[@harini7271]

Thanks for this video..can you please put another video on shorting stock and its strategies.

[@InvestmentInsightsTamil]

I never go against the market. And so I never looked into any strategies for that. Sorry.

[@anandann6415]

Good knowledge vijay . good job 🙏🏿

[@biasbias539]

Great content as always

[@bnatara]

Super Super Super!!!

[@rambrothers4249]

Dear sir , Thanks for your advices. Kindly tell about commodity trading.

[@krishnakumarchinnusamy]

Nice Vijay 🎊👍🏼

[@bnatara]

My finance Guruvee Two questions - 1)You said, dont try to time the market in the beginning and towards the end you also mentioned for margin trading its ok to wait till the market drops a good bit. Is there a conflict there? 2) Is it a good strategy to us dollar cost average method when it comes to margin trading given that the market is very volatile currently? Once again THANKS SO MUCH for all the work you do!! Keep enlightening us!! Also if you come to Virginia let me know:)

[@InvestmentInsightsTamil]

1. I said that in the same sentence. For normal investment, it is always better to stay invested. But with margin, which is additional risk, we can afford to wait to enter for the right time. 2. Like I mentioned in the video, it is good as long as you are staying below 25% of leverage. Not a good idea to go over it when the market is choppy.

[@sundar9791]

Very simple language and detailed. Appreciate if you could share all worksheets (not just margin related) Wanted to play around

[@InvestmentInsightsTamil]

All spreadsheet links are in the description. Copy to your account to play around. It is also available here vijaymohans.com/calculators/

[@saravananv9990]

Just completed all of your video , all videos are really great , learnt lot . I have few questions, it would be great if you can answer. 1. I started to invest in mutual funds recently ( from last 1 month ) , but that time i didn't know about regular vs direct fund , so I purchased regular funds via phone pay app. But now realised we can buy same fund with cheaper expense ratio using discount broker like grow app , Paytm money . What should I do now ? Shall I withdraw my investment and invest again using Paytm money for direct funds or keep it as regular fund ? 2. How expense ratio charged ? For example if expense ratio is 1% means it will be 1% per year or 1% of money when I withdraw ? If i withdraw within 2 months of investment still I have been charged 1% ? Thanks. Hopefully I can get answers.

[@InvestmentInsightsTamil]

1. Yes. Switch to direct as you will see the difference will be huge in long term. 2. Expense ratio is charged everyday based on daily rate.

[@saravananv9990]

@@InvestmentInsightsTamil Thank you sir for your quick response, I will switch my funds as soon as possible. I forgot to ask , one of my fund have 1% exit load as withdrawal charges if redeemed with in 1 year . in this case shall I keep that fund in regular untill the 1 year over ?

[@InvestmentInsightsTamil]

What is the expense ratio difference between regular and direct? If it is more than 1%, then you should sell now and switch. But if it is less than 1%, then yeah, hold for year.

[@saravananv9990]

@@InvestmentInsightsTamil its less than 1% so i will hold sir , thank you.

[@prabagaran.s1285]

Early today 👍👍👍

[@parthasarathyvenkatadri]

Sema idea ji ithu , Intha 25% margin namma broker haircut ah sertha illa adhu illamaiya..

[@InvestmentInsightsTamil]

Broker interest is in separate column in the calculation.

[@nanban2000]

Vijay, a basic question. How to buy Index funds in India? Does it have to be NIFTYBees or mutual funds. Can be bought as index fund directly?

[@painreliever1728]

Through stock markets as ETF.

[@InvestmentInsightsTamil]

When we say index fund, it can be either ETF or Mutual Fund. We can buy the mutual funds directly from the fund houses like UTI or thru brokerages like Groww or Kuvera.

[@World6666-ULN]

Basics of Share Market......books ஏதாவது கிடைக்குமா தமிழில் உதவி செய்ய முடியுமா Sir🙏

[@rtgopinath]

Hi Vijay, Is the plan here is to continue holding the margin and never realising gains? So the index instrument referred here is not index-future which has a set expiry? I’m trying to understand how we realise gains here. Would be good to have a part two of this strategy bit more in detail if you can.

[@InvestmentInsightsTamil]

That is correct. I meant the index ETF. Not the futures with set expiry date. The reason we invest is to hold the assets for ever and build the wealth. If we want to realize the profit for whatever expense, then we should treat this the same way as the regular index fund holding. Nothing different. Saying that, I do not really have good visibility on what is available for margin account in India, their interest rates and the maintenance margin requirements. The examples I have provided are from USA. Check with your brokerage and get the numbers that is applicable for you and plug in the spreadsheet to see if it is even worth to consider margin in India.

[@rtgopinath]

@@InvestmentInsightsTamil Never thought about using leveraged money to build wealth forever, thought it’s meant to be for short term trades. Interesting insight to analyse further. Any deep dive you could do further on this strategy would be much appreciated as well. Here in Australia for leveraging we have something as Index CFDs, trying to see if any parallels.

[@InvestmentInsightsTamil]

@@rtgopinath You do not need futures for this. Just buy and hold index ETFs like Vanguard's VOO or SPY.

[@rtgopinath]

@@InvestmentInsightsTamil thank you for the replies. Will check them out.

[@jagankrishnan4710]

Hello vijay sir.. very nice video. One question.. do you still believe in 60% stocks and 40% in bonds? With bond interest rate so low in the USA it is not clear if you can get good returns in US treasury bond market. Please let us know your thoughts and investment insights into this topic. Thanks.

[@InvestmentInsightsTamil]

I am 100% on stocks. We need to have bonds in our portfolio to have less pain during the market downturn. If you are capable of handling the market downturn comfortably, you can definitely have higher exposure to equity. Just because I am 100% on stocks, I cannot recommend that to everybody - as I know more than 95% of the folks cannot handle market downturn comfortably.

[@jagankrishnan4710]

Thank you for the reply. I understand your point. But I think it is not about comfortablity factor. There are times where 60-40 portfolio can generate more returns than 100 percent stocks. This works well in indian markets as bond markets yield around 6 to 7%. Can we replicate the same in USA market?

[@InvestmentInsightsTamil]

@@jagankrishnan4710 In long term, that combination will never beat 100% equity - neither in India nor in USA.

[@prakashkk2771]

My suggestion .. If you are in high wealth investment u need to follow different setup ..the 60 40 setup is for normal low and medium wealth people to avoid loss during market low down .. if u have 10 crore equity profolio and withdrawing few laks during emergency at lowest of market will not make any difference in longer term .

[@22hariharantg8]

Trading la nama cash matum SL vechi panalme... Any wrong with this??

[@rajasekarsanthosh7937]

Thank you sir

[@kprakalathan697]

Hi Vijay, can we invest in Nifty 100 index fund instead of investing in Nifty 50 + Nifty next 50 fund's.

[@InvestmentInsightsTamil]

Sure. Totally personally choice. But do know that it is not the same. Nifty 100 will have higher concentration of Nifty 50.

[@sensha4614]

How to take advantage by using margin in long term Index fund investments and other Mutual funds? Because No fund house provide margin is it sir?

[@InvestmentInsightsTamil]

Yeah... margin can only be used in ETFs and stocks. Only brokerages can offer margin. Not sure about the interest rates in India.

[@sensha4614]

@@InvestmentInsightsTamil Thank u reply sir.... 0.0007% interest (per day) for stocks leverages collected by some brokers in India. I think its Too much interest rate.

[@prabagaran.s1285]

When to settle margin?

[@InvestmentInsightsTamil]

Not sure how the margin for day trading works. But what I am referring here is long term investment. For this, there is no settlement of margin. As long as there are assets in the account to back up the margin, we can have the margin as long as possible - at least in US.

[@prabagaran.s1285]

@@InvestmentInsightsTamil thanks for the explanation 👍

[@nithyananthams]

Hi Vijay - Thnx a lot. I really learnt lot from you. I have an question, for my 401k investment in S&P500 Index fund. I have the option only for Black Rock iShare SP 500 IN FD, is it a reliable one to invest..

[@InvestmentInsightsTamil]

It is S&P500 Index. It cannot get more reliable than that. Go for it.

[@World6666-ULN]

Sir என்னிடம் 5 Laksh உள்ளது இதனை எவ்வாறு Share-ல் Invest பண்ணுவது மற்றும் எந்த Sharல் - INVs பண்ணுவது மனிமம் 5 to 10 year holding செய்து Maxim எவ்வளவு லாபம் (or) percentage % .பார்க்கலாம். தங்களது மெயில் ID அளிப்பவும் இன்னும் பல கேள்விகள் உள்ளது. உலகநாதன் தென்காசியில் இருந்து.

[@InvestmentInsightsTamil]

Watch the "Stocks Portfolio" episode to see my recommendations.

[@World6666-ULN]

எனக்கு மார்க்கட் Analysis தெரியாது But அதோட History எல்லாம் Search செய்து பார்க்க தெரியும். Share மார்க்கெட் எனக்கு புதிது.

[@erenyeager3481]

What is your opinion on using grid trading bots with leverage in highly volatile markets?

[@mano14madhu]

🔥

[@InvestmentInsightsTamil]

I have no idea what that is. I am not into trading or bots.

[@erenyeager3481]

@@InvestmentInsightsTamil Thank you for the reply

[@thehangovernoobboys]

Neenga Rambo technical ahh solldringa beginners ku puriyala

[@InvestmentInsightsTamil]

Athu nallathu thaan. Beginners margin pathi yosikavey koodaathu. Athu dangerous. Just stick to index funds. As time goes, you will learn this automatically. Patience is a key requirement to be successful with investments.