Young girl’s financial advice on what to do with Diwali money impresses Vijay Shekhar Sharma

A young girl’s financial advice on what to do with the Diwali money she accumulated 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 the video of her daughter and said, “What my daughter intends to do with her Diwali Shagun envelopes”.

In the video, a woman who is likely to be Dugar, is heard telling the child that she received lot of money on Diwali and asked her what she intends to do with it. The child then says that she will “save it in her account and put in mutual funds”.

When asked what mutual funds do, she says that mutual funds people know “what companies are good and what companies are bad.” “And if they give the money to that company, the company might make some profit. And as the company makes profit, even my money will grow,” she adds.

When asked for how long she wants to invest, the young girl thought for a while and said 10 years.  

The mother tells her that in some years the company can also make losses. “Every year it can’t make a loss. Sometimes it will make profit, and sometimes it might make a loss,” she says.

Why don’t we invest directly in stocks, asks the woman, to which she replies, “Because we don’t know what company is bad and may not give us the money back and may not make profit. That’s why we ask mutual funds first and then give money to the company.”

A Twitter user replied to the tweet and said that children must be taught about startups, mutual funds, shares from Class 6 onwards. Responding to the tweet, Dugar said that her daughter is in Class 2 and understands “loss, profit, SIPs as a process, stocks, equity, mutual funds, emergency funds, and insurance.”

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