A young girl’s financial advice on what to do with the Diwali money she collected has impressed Paytm CEO Vijay Shekhar Sharma. The young girl can be seen telling her mother that she intends to put her money in mutual funds for 10 years, prompting Sharma to share the video with the caption “mutual fund sahi hai”.
Twitter user Swati Dugar shared her daughter’s video and said, “What my daughter intends to do with her Diwali Shagun envelopes.”
In the video, a woman believed to be Dugar is heard telling the child that she received a lot of money on Diwali and asks what she plans to do with it. The child then says that she will “keep it in her account and put mutual funds.”
When asked what mutual funds do, she says that mutual fund people know which companies are good and which companies are bad. “And if they give the money to that company, the company can make some profit. And as the company makes a profit, my money will also grow,” she adds.
Asked how long she wants to invest, the young woman thought for a while and said 10 years.
The mother tells him that in a few years the company may even have a loss. “Every year there can be no loss. Sometimes it will bring profit, and sometimes it can bring loss,” she says.
Why don’t we invest directly in shares, asks the woman, to which she answers: “Because we don’t know which company is bad and may not return our money and not make a profit. That is why we first look for mutual funds and then give money to the company.”
A Twitter user responded to the tweet and said that children should be taught about startups, mutual funds, stocks from class 6 onwards. Responding to the tweet, Dugar said her daughter is in Grade 2 and understands “loss, profit, SIPs as a process, stocks, equity, mutual funds, emergency funds and insurance.”
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