I have a telegram channel where I usually post about some personal finance related tips as well as post about my YouTube Videos. Yesterday a new guy joined the channel and asked me if I have any startegy to generate 2.5% returns monthly. Basically he asked me about my ETF Shop startegy and how much returns I have got it from it. I said that I got around 10% returns, then he said that it's low. If he has to generate 10% then he can get it from MF itself.
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I said yes, that's true we can get 10% or more from MF itself. But I am doing the ETF Trading because it gives me monthly income like a passive income. Now MF/Stocks is great for growth. But if you are thinking of creating some passive income then ETF Shop is great. I have started ETF Shop from just 25K and now I have invested around 5 Lakhs in it and I am getting around 1 to 2K per month. And hopefully will get more in future and at some point maybe can get a huge money from it.
Now he asked about any strategies which can give 2.5% returns per month. Now there are strategies but that is risky and cab wipe out the capital also, which I have explained. And that's the problem with most of the people. They think that they can earn a huge money nit by investing for long but by getting huge returns. The thing is you can get 2.5% return in one month, but the next month that 2.5% return can become -5% also. If you are trying to keep it realistic then I feel 1.25% returns per month is ok.
And that's why people lose a lot of money trying to get more returns. The solution is not more returns, solution is more money in the market as well as more time in the market.