1.1 – Why should I invest?

Before we address the above question, let us understand what would happen if one chooses not to invest. Assume you earn Rs.50,000/- per month, and you spend Rs.30,000/-towards your day-to-day living; this can include expenses like housing, food, transport, shopping, medical, etc. The balance of Rs.20,000/- is your monthly surplus.

Ch 1 Need to Invest

For the sake of simplicity, let us ignore the tax effect in this discussion.

To drive the point across, let us make a few simple assumptions –

    1. The employer is kind enough to give you a 10% salary hike every year.
    2. The cost of living is likely to go up by 8% yearly.
    3. You are 30 years old and plan to retire at 50, this translates to 20 working years.
    4. You don’t intend to work after you retire.
    5. Your expenses are fixed, and you don’t foresee any other expenses.
    6.  The balance cash of Rs.20,000/- per month is retained as hard cash.

Going by these assumptions, here is what the cash balance will look like in 20 years.

Years Yearly Income Yearly Expense Cash Retained
1 600,000 360,000 240,000
2 6,60,000 3,88,800 2,71,200
3 7,26,000 4,19,904 3,06,096
4 7,98,600 4,53,496 3,45,104
5 8,78,460 4,89,776 3,88,684
6 9,66,306 5,28,958 4,37,348
7 10,62,937 5,71,275 4,91,662
8 11,69,230 6,16,977 5,52,254
9 12,86,153 6,66,335 6,19,818
10 14,14,769 7,19,642 6,95,127
11 15,56,245 7,77,213 7,79,032
12 17,11,870 8,39,390 8,72,480
13 18,83,057 9,06,541 9,76,516
14 20,71,363 9,79,065 10,92,298
15 22,78,499 10,57,390 12,21,109
16 25,06,349 11,41,981 13,64,368
17 27,56,984 12,33,339 15,23,644
18 30,32,682 13,32,006 17,00,676
19 33,35,950 14,38,567 18,97,383
20 36,69,545 15,53,652 21,15,893
Total Income 17,890,693

If one were to analyze these numbers, one would soon realize this is a scary situation. A few things are quite obvious –

    1. After 20 years of hard work, you have accumulated Rs.1.7Crs.
    2. Since your expenses are fixed, your lifestyle has not changed over the years, and you probably even suppressed your lifelong aspirations – a better home, car, vacations, etc.
    3. After you retire, assuming the expenses will continue to grow at 8%, the retirement corpus of Rs.1.7Crs is good enough to sail you through roughly 8 years of post-retirement life. 8th year onwards, you will be in a tight spot with literally no savings left to back you up.

What would you do after you run out of money in 8 years? How do you fund your life? Is there a way to ensure that you collect a more considerable sum at the end of 20 years?

At this point, you may think that the assumptions are simple and that real life does not work like this. I agree, and I won’t dispute that fact. However, the point to note in the above calculation is that no investments are made, hence the cash retained has a flat or zero growth.

Let’s consider another scenario where instead of keeping the cash idle, you choose to invest the cash in an investment option that grows at, let’s say, 12% per annum. For example – in the first year, you retained Rs.240,000/- which, when invested at 12% per annum for 20 years (19 years assuming you invest at the end of 1st year), yields Rs.2,067,063/- at the end of the 20th year. For those interested in math, here is how that works –

= 240000*(1+12%)^(19)

= 2067063

Dont worry about the math at this point. We will explain that later in this module (and several other modules in Varsity). Here is how the table looks if you choose to invest.

Years Yearly Income Yearly Expense Cash Retained Retained Cash Invested @12%
1 600,000 360,000 240,000  20,67,063
2 6,60,000 3,88,800 2,71,200  20,85,519
3 7,26,000 4,19,904 3,06,096  21,01,668
4 7,98,600 4,53,496 3,45,104  21,15,621
5 8,78,460 4,89,776 3,88,684  21,27,487
6 9,66,306 5,28,958 4,37,348  21,37,368
7 10,62,937 5,71,275 4,91,662  21,45,363
8 11,69,230 6,16,977 5,52,254  21,51,566
9 12,86,153 6,66,335 6,19,818  21,56,069
10 14,14,769 7,19,642 6,95,127  21,58,959
11 15,56,245 7,77,213 7,79,032  21,60,318
12 17,11,870 8,39,390 8,72,480  21,60,228
13 18,83,057 9,06,541 9,76,516  21,58,765
14 20,71,363 9,79,065 10,92,298  21,56,003
15 22,78,499 10,57,390 12,21,109  21,52,012
16 25,06,349 11,41,981 13,64,368  21,46,859
17 27,56,984 12,33,339 15,23,644  21,40,611
18 30,32,682 13,32,006 17,00,676  21,33,328
19 33,35,950 14,38,567 18,97,383  21,25,069
20 36,69,545 15,53,652 21,15,893  21,15,893
Total cash after 20 years  4,26,95,771

Your cash balance has increased significantly with the decision to invest surplus cash. The cash balance has grown to Rs.4.26Crs from Rs.1.7Crs,  a staggering 2.4x more than earlier (when you choose not to invest). Clearly, with the decision to invest, you are in a much better situation to deal with your post-retirement life.

Now, going back to the initial question of why invest? There are a few compelling reasons –

    1. Fight Inflation – By investing, one can deal better with the inevitable reality of life – the growing cost of living – generally referred to as Inflation.
    2. Create Wealth – By investing, one can build a bigger corpus by the end of the target period. In the above example, the period was up to retirement, but it can be anything – children’s education, marriage, house purchase, retirement holidays, etc
    3. Better life – To meet life’s financial aspirations.

1.2 – Where to invest?

Having figured out the reasons to invest, the next obvious question is – where would one invest, and what return can one expect with investing? When investing, one has to choose an asset class that suits the individual’s risk and returns profile. For example, one individual will be open to taking a lot of risk with his or her money, while another may want to take moderate risk, while another would want zero risk.

Think of an asset class as an investment vehicle defined by its risk and return characteristics.  The following are some of the popular asset classes.

    1. Fixed income instruments
    2. Equity
    3. Real estate
    4. Commodities (precious metals)

fixed-inst-icon Fixed Income Instruments

Fixed-income instruments are investment avenues where your principal amount (the money you invest) is perceived to be safe. The entity pays an interest amount on the principal you invest. The bank’s fixed deposit scheme is the simplest example of a fixed investment instrument.  The interest paid could be quarterly, semi-annual or annual. The capital is returned to the investor at the end of the investment period, also known as the maturity period.

A few examples for fixed-income instruments are –

  1. Bank’s Fixed deposits
  2. Bonds issued by the Government of India (also called G Sec bonds and T Bills)
  3. Bonds issued by Government related agencies such as GAIL, HUDCO, NHAI, etc
  4. Bonds issued by corporate’s (Tata, Bajaj, Reliance, Adani)

As of October 2022, the typical return from a fixed-income instrument (bank’s FD) varies between 5 – 6%. Government bonds offer about 5.5%, and a few corporate bonds offer nearly 9 or 10%. The rates across different instruments vary because of the risk varies. The Govt bonds are considered the safest investment, with zero risk to your investment, because, well, the govt can’t cheat and run away with your money. Corporate bonds are risky, though; investment in corporate bonds can go to zero, and we have seen plenty of such examples in the past.


Investment in Equities involves buying shares of publicly listed companies. The shares are traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

When an investor invests in equity, unlike a fixed-income instrument, there is no capital guarantee. However, as a trade-off, the returns from equity investment can be much better. Indian Equities have generated upwards of 12% CAGR (compound annual growth rate) over the past 10 to 15 years.

Investing in some of the best and most well-run Indian companies has yielded over 20% CAGR in the long term. Identifying such investment opportunities requires skill, hard work, and patience.



Real Estate

Real Estate Investment involves transacting (buying and selling) commercial and non-commercial land. Typical examples include transacting in vacant plots, apartments, and commercial buildings. There are two income sources from real estate investments: Rental income and Capital appreciation of the investment amount. The rental yield typically varies between 2-3%, which is not so attractive, in my opinion. The appreciation in land prices is in select pockets and is not uniform.

The transaction procedure can be quite complex involving legal verification of documents. The cash outlay in real estate investment is usually quite large. There is no official metric to measure the returns generated by real estate. Hence it would be hard to comment on this.


Commodity – Bullion

Gold and silver are considered one of the most popular investment options.  Gold and silver, over the long term, have appreciated. Investments in these metals have yielded a CAGR return of approximately 5-8% over the last 20 years. There are several ways to invest in gold and silver. One can invest in jewelry, Exchange Traded Funds (ETF), or Sovereign Gold bonds, popularly called as SGBs.

Going back to our initial example of investing the surplus cash, it would be interesting to see how much one would have saved by the end of 20 years, considering he can invest in any one – fixed income, equity, or bullion.

  1. By investing in fixed income at an average rate of 9% per annum (good corporate bond), the corpus would have grown to Rs.3.3Crs.
  2. Investing in equities at an average rate of 15% per annum, the corpus would have grown to Rs.5.4Crs.
  3. Investing in bullion at an average rate of 8% per annum, the corpus would have grown to Rs.3.09Crs.

Equities tend to give you the best returns, especially when you have a multi-year investment perspective.

Many of you reading this may wonder why I’ve not considered Cryptocurrencies as an asset class. When you invest your hard-earned money, you need to ensure enough checks, balances, and regulatory frameworks to protect you as an investor. Crypto, lacks all these; hence I’d suggest you stay away from crypto (or any other fancy investment option) till there is a regulatory framework.

It is best if your investments have a mix of all asset classes. It is wise to diversify your investment among the various asset classes. The technique of allocating money across asset classes is termed ‘Asset Allocation’, and we will discuss asset allocation later in Varsity.

For instance, a young professional may take a higher risk given the age and years of investment available. Typically investors should allocate at least 60% of their investable amount in equity, 20% in precious metals, and 20% in fixed-income investments. The percentage mix changes based on risk profile and age. For example, a retired person could invest 80% in fixed income (Govt bonds maybe), 10% in equity markets, and 10% in precious metals.

1.3 – Things to note before investing

Investing is an integral part of financial planning, but before you start your investment journey, it is good to be aware of the following –

    1. Risk and Return go hand in hand. Higher the risk, the higher the return. The lower the risk, the lower the return.
    2. Investment in fixed income is a good option if you want to protect your principal amount. It is relatively less risky. However, you have the risk of losing money when you adjust the inflation return. Example – A fixed deposit that gives you 9% when the inflation is 10% means you lose a net of 1% per annum. Alternatively, the risk increases if you invest in a corporate fixed-income instrument.
    3. Investment in Equities is a great option. It is known to beat inflation over a long period. Historically equity investment has generated returns close to 14-15%. However, equity investments can be risky.
    4. Real Estate investment requires a significant outlay of cash and cannot be done with smaller amounts. Liquidity is another issue with real estate investment – you cannot buy or sell whenever you want.
    5. Gold and silver are relatively safer, but the historical return on such investment has not been very encouraging.

You can download the excel sheet used in the chapter to generate the two tables.


Key takeaways from this chapter

  1. One has to invest, to secure his or her’s financial future.
  2. The corpus you build at the end of the investment period is sensitive to the return percentage. A slight variation in the rate can significantly impact the corpus.
  3. Choose an instrument that best suits your risk and return appetite.
  4. Equity should be a part of your investment if you want to beat inflation in the long run.
  5. A good investment practice is to build a portfolio that mixes all asset classes.


  1. Pedro says:

    wrong commas throughout the table like
    xx, xx, xxx

    • Karthik Rangappa says:

      Not really Pedro :). Check this – http://en.wikipedia.org/wiki/Indian_Numbering_System

      • Pedro says:

        Didn’t know it, sorry.
        Isn’t the first row wrong then?

      • Tanmay Mondal says:

        Hello Karthik,

        I am one of your clients id being RT0542. i have been connected to zerodha for the past 1.5 years and I really appreciate zerodha’s initiative to spread financila literacy through zerodha varsity.
        I am currently pursuing my MBA from IIM Rohtak and planning to make videos of the modules and chapters and upload it on youtube.
        I just wanted to know if I can use the content of varsity in my videos and promote financial literacy as in, am I allowed to do so or is this illegal.

        Waiting for a positive reply, as I really want to spread this knowledge. And any kind of help or guidance with this regard will be really appreciated.

        Tanmay Mondal

      • Sam says:

        Iam sorry for a bad words here.it my dumb drunk friend of mine messing up my computer.shit.i just found out from my others friend.iam really sorry.this is why u cannot let drunk friend enter yr room..and again iam sorry.i just wanna apologized what my dumb friend just did few minutes ago.anyway i always follow yr artical.now feel bad with what he just did.

      • Aryan.bansal says:

        In the second table retained cash invested column entries all are right ?

        • Karthik Rangappa says:

          Yes, they are.

          • Sairam Garapati says:

            Hi Karthik,

            I am new to this trading world.I don’t know what exactly it is,but am very much passionate about trading and investment.
            Can you please provide references of the best video tutorials to learn ,as a layman to trading world i can’t simply understand this tutorial.


          • Karthik Rangappa says:

            Glad to hear that, Sairam. Can’t really think of a good video source (yet). I’d suggest you spend some time to read through the content here.

          • Jessica says:

            How?? If u know can u please provide the details of those cash invested entries?

          • Karthik Rangappa says:

            Sorry, can you please elaborate your query? Thanks.

          • Jessica says:

            I m saying that I did not understand that second table where cash retained investment had been shown. I did not get where those amounts of cash retained investments had come from. Pls explain.

          • Karthik Rangappa says:

            Cash retained is the difference between the yearly income and yearly expense.

    • Rahul says:

      Some numbers are in English numbering system e.g.
      600,000 360,000 240,000 Total Income 17,890,693

      While elsewhere it is Indian number system. They need to be consistent.

  2. lian says:

    Sorry, but I didn’t understand why, in the second table, at the Retained Cash Invested @12% column, the values start decreasing after the 12th year. Look at the image:

    • Karthik Rangappa says:

      Lian, that is because even though the guy has a higher amount to invest, he is investing for a shorter duration. Hence lesser time for the money to compound and grow.

      • Kaushal Singh says:

        still why do we consider compound interest rate @ 12% ?
        Is it ideal? or do we have any graphical value? or do we have any calculation method?

        • Karthik Rangappa says:

          That is roughly the long term average CAGR of the top 20 – 25 mutual funds in India. You can find plenty of research on this online.

  3. Chandra Sekhar says:

    This site is unique and useful for investors.
    I am an investor. I am in Canada and I invest in NYSE and in TSX Mkts.
    As I have business interest in India, would be looking for opportunities there.
    You may keep me in your mailing list

  4. RP1256 says:

    This would be really helpful for all who want to understand and invest. 🙂

  5. R K verma says:

    What is the good ratio to invest in the age of 25. How much in equity and how in other instruments.

  6. vishvendra89 says:

    Line 14 in the first image is wrongly printed, please correct it. income and expenses mentioned are same. thanks

  7. Sridhar says:

    Line 14 in the Second Image too is wrongly printed, please correct it (as per the first image). income and expenses mentioned are same . thanks

  8. Jagmohan Singh Ahluwalia says:

    Sir Income tax rate charged on long term capital gain is 20%

    • Karthik Rangappa says:

      True, however shares and mutual funds are exempted from this.

    • akshaysharma2810 says:

      Long term capital gains on which Securities Transaction Tax (STT) are exempt from tax. STT is generally paid when securities are traded through a recognized stock exchange. Hence, sale of equity shares held for more than 12 months is exempt under section 10(38) of the Income Tax Act, 1962.

      • Sai Sreedhar says:

        Supposing I BUY a particular share lots (varied numbers) every month in FY (eg. April, May…. till March), how do I ensure that when I SELL, the first lot (bought in April) to be used and not the one I bought less than 12months (say month of Jan or March) – because we don’t have such option when opting in SELL.

        • Karthik Rangappa says:

          This works on FIFO basis – first in, first out.

          • Sai Sreedhar says:

            Thanks Karthik.
            Does the Broker ensures this?

          • Karthik Rangappa says:

            Its implied.

          • vinod vaddi says:

            How does this matter? If I bought 20 shares last month at INR 100 each and 10 shares this month at INR 200 each, the buying price for me averages to INR 133. Now when I sell it I make profit if the selling price is above 133. If not, loss.

          • Karthik Rangappa says:

            Yes, in terms of profitability it will be 133, however, when you consider taxation, FIFO is applicable.

          • Maha says:

            The article is so informative for beginners like me. Kudos team!!
            I have a question on
            “vinod vaddi says:
            June 19, 2017 at 6:48 pm
            How does this matter? If I bought 20 shares last month at INR 100 each and 10 shares this month at INR 200 each, the buying price for me averages to INR 133. Now when I sell it I make profit if the selling price is above 133. If not, loss.”

            How is the buying price averaged to INR 133. Please can you explain on this

          • Karthik Rangappa says:

            The average works like this –

            Buy 20 @ 100 = 2000
            Buy 10 @ 200 = 2000

            Total investment = 2000 + 2000 = 4000
            Total Quantity = 20 + 10 = 30

            Average = 4000/30

  9. sushil 12 says:

    hold long term investment in capital gain for more than >3 year ..tax fully exempted

  10. prateekbagri says:

    Hi, could you please explain me how did you calculate the retained cash invested a@ 12% table? I cannot seem to get it.

    • Karthik Rangappa says:

      Firs year cash retain is Rs.240,000 which will be invest for 20 year @ 12%. To figure out how much this will grow to after 20 years, we need to apply the CAGR formula which is –

      Amount after ‘n’ year = Amount Invested *(1 + Growth Rate ) raised to the power of ‘n’ years.

      = 240000*(1+12%)^20

      Likewise the next year retain cash is Rs.271,200/- which will be invested for 19 years –

      So on and so forth.

      • Shankar says:

        Please review your calculation for cagr. I guess its 2315110 not 2067063.

        • Karthik Rangappa says:

          Shankar, the calculation assumes that the money is accumulated at the end of every year and gets invested over the 20 year period. Hence for the first year the accumulated money gets invested for 19 years, not 20. Likewise for the 2nd year it gets invested for 18 years. So on and so forth. I guess this is where the difference is coming about. Of course, I have not conveyed this point across in the discussion above, will make the necessary edits. Thanks for pointing this.

      • chaitanya says:

        Hello, can you explain me with out formula. How can this come explain me clearly please

      • Jessica says:

        I Didnot understand the calculation after we multiply the cash retained by( growth rate +1)

  11. Shankar says:

    Please review your calculation for cagr. I guess its 2315110 not 2067063.

  12. Nandhaa says:

    Kindly provide a link to download all these files in .pdf format. I am feeling difficult to read sitting in front of the laptop.

    • Karthik Rangappa says:

      We do not have the PDF version now..but may soon consider the same. Request you to kindly bear with us in this regard.

  13. sudip ray says:

    very informative and explained clearly with examples. should encourage the readers to invest for securing the future of self and his/her family.

    • Karthik Rangappa says:

      Glad you liked the content here Sudip. I hope people understand the importance of savings for the futures.

  14. […] You are not wrong if you think of answers like to create wealth / to generate secondary income/ to be financially free/ to increase your social status by becoming rich etc. But even though you are not interested in all the reasons mentioned here, you still need invest. Let me tell you why. There is something called “inflation“. Simply defined as “The raise or fall of prices of goods“. If the price of the commodities increases, it means that  the inflation has increased. If the price of the commodities fall, it means that  the inflation has fallen. It is the job of Central Bank (RBI in India) to keep the inflation in control. Our day job salaries remaining the same and the inflation keeps on increasing year by year, so it is utterly necessary to protect ourselves from inflation. That cannot be done by keeping your hard earned money in Savings Bank account. Even the money deposited in Fixed Deposit accounts cannot save you from this inflation beast. So you must let you grow your money to take control of this inflation to fulfill your future financial goals. If you want to learn more about the need to invest, i recommend you to refer this link http://zerodha.com/varsity/chapter/the-need-to-invest/ . […]

  15. girish says:

    dear karthik sir..
    Thank you for doing rock work study material easy way, it’ll will help to all investors & traders who is interesting to learn !….
    I am rocking in market sir…. very fun. I Glad to share you sir.. sir shall you make quiz about technical indicators…? it’s interesting joy, fun more…
    thank you sir..

  16. mayur.popade says:

    Thank you very much for sharing your knowledge.

  17. Arun Manikandan says:

    The post was awesome..Would like to get more details and knowledge on the same.Share it in future :)Thanks a ton

  18. […] You are not wrong if you think of answers like to create wealth / to generate secondary income/ to be financially free/ to increase your social status by becoming rich etc. But even though you are not interested in all the reasons mentioned here, you still need to invest. Let me tell you why. There is something called “inflation“. Simply defined as “The raise or fall of prices of goods“. If the price of the commodities increases, it means that  the inflation has increased. If the price of the commodities fall, it means that  the inflation has relatively decreased It is the job of Central Bank (RBI in India) to keep the inflation in control. Our day job salaries remaining the same and the inflation keeps on increasing year by year, so it is utterly necessary to protect ourselves from inflation. That cannot be done by keeping your hard earned money in Savings Bank account. Even the money deposited in Fixed Deposit accounts cannot save you from this inflation beast. So you must let grow your money to take control of this inflation to fulfill your future financial goals. If you want to read more about the need to invest, i recommend you to refer this link http://zerodha.com/varsity/chapter/the-need-to-invest/ . […]

  19. Ravichandran Dhaya says:

    Excellent info karthik bro…. keep up the good work… as mentioned earlier by one of our friend, it will be helpful if u make it in a pdf to read these info….

  20. Saravana Perumal Durai Pandiyan says:

    Extremely good and hard work. Hats off your effort for the creation of this awareness education system. God bless you.

  21. Shreeharsha says:

    Dear sir I have 5000 thousands rupees. By using this money can I enter share market???

    • Karthik Rangappa says:

      Of course you can. I would suggest you choose a nice company and buy their shares..and stay invested. Please do not attempt F&O trades with the initial money you have.

      • surya says:

        What is the reason sir? Why should one not invest in F&O trades, isn’t the easy one for a newbie?

        • Karthik Rangappa says:

          F&O is fairly advanced, Surya, especially options. There are many factors which influence the price of options. If you are a newbie, I’d suggest you get familiar with the basics and then move to F&O.

  22. Shreeharsha says:

    Thank u sir

  23. Vinod Prasad says:

    I am not doing trading & having Zero knowledge about it, but I am interested for learning this.. From where should I learn..

  24. Vijayinani says:

    I want to make career in stock market .. right now I am pursuing degree final year, I belong to commerce field, can i know what should i start with to get jobs at stock exchange!

  25. girijanms says:

    Appreciate your effort and time to educate. Zerodha varsity was recommended by one of our members of investment advisory services; the greatgems.blogspot. So useful, for new entrants into the stock market. Thank you.

  26. geetanjali nath says:

    One of best methods to generate income is through stock market, Of course, it goes without saying , as in any other successful profession, it requires constant learning and learning and learning.
    Thankyou Karthik for initiating this education, looking forward to learn the art and science of stock market.

  27. Meer says:

    I am a beginner, an engineer trying to learn equity. Thanks!! Material is useful for people like us. Just started learning. Don’t know if my question is sensible. I would like to know whether the profit earned from investments in equity is taxable?

  28. suresh says:

    thank you very much I am a beginner…language used is very simple and easily understandable …i want to make my career in stock market field …what are the paths and courses exams etc.
    and please tell me how to download pdf files of these lessons

    • Karthik Rangappa says:

      Suggest you begin with NISM exams and then move to do a full time Masters in Finance or MBA in Finance.

  29. Dev Bhansali says:

    Hello Sir.

    I am qualified CA, I am looking future in capital market and money market. i need suggestion of your, which Course i should join of NSE or other?

    Thanks & Regards

  30. Humayun says:

    I dont agree on average monthly salary of a person is 50 Thousand this days.
    Only 10 to 15 thousand is the average salary and if you are very very lucky you will get 20 Thousand there will be only one manager and CEO in a company so they can earn 50 K or more but all the employees are not getting more then 20 K month in any good companies.

  31. Roshan says:

    Thank you whoever has prepared this, Its really important in today’s time to invest for a better future. Kudos to all who put in the effort god bless.

  32. Chidu says:

    Please cross check the Cash Retained column, it seems you have appended a extra Zero at the end.

  33. sushildjoshi says:

    Hi Karthik,
    First of all I would like to THANK YOU for this wonderful website with all the incredible information!
    I am right now in New Jersey USA and working as full time Software professional. I have started going through from module 1. I want to understand when I will come to India how can I full time employee like me trade in options where there is need to continuously monitor NSE website to get good profit and it will be bit difficult during working hours in Office. Looking for some suggestions in this scenario.

  34. Prabir says:

    You are awesome sir, you explained it like it can not be easier than this. thank you so much sir.

  35. shri31565 says:

    Nice way of explaining, thank you so much sir,

  36. sriram says:

    Higher risk does not mean higher return. Higher return means higher risk.

  37. Sai says:

    can some one correct the comma(,) in Total Income 17,890,693.

  38. Vadhana says:

    Hello Sir, your teaching and service is of great help to learners like me. Have a question to you?
    In some sites i have seen people giving a tips for on stock and options etc…
    for example Buy Arvind 330 ce Sep @ 5.75 SL 4 and target is 8-10. How is this predicted or said. What is the analysis behind this. Can you please help me understand this?

    • Karthik Rangappa says:

      Thanks Vandhana.

      Most people do simple Technical Analysis and give out these calls. But here is my suggestion – please do your own analysis, this is when you will really pick up the art of trading/investing.

      • Vadhana says:

        Thank sir. Yes am doing analysis and learning by googling a lot. when we speak technical other than RSI, MACD, EMA what all i need to look into can you please guide me with the level?

        • Karthik Rangappa says:

          The more number of things you add, the more complex the system gets. So my suggestion, know few indicators but know them really well.

  39. Nirnoy Nimesh says:

    I read the article but I have few questions to ask:
    1) In the first table it is mentioned that the total income is 17,890,693. From where this value came ?
    2)In the second table the Total cash after 20 years is mentioned as 4,26,95,771 , how is it calculated ?

    • Karthik Rangappa says:

      1) Salary income as stated in chapter.

      2) Its calculated based on the returns generated by the investments made.

  40. Ashutosh Gautam says:

    1.3 first bullet point, where it says “Higher the risk, higher the return.” This is not correct.
    Actually the reverse is correct. “Higher the return, Higher the risk.”

  41. pravin says:

    hello kartik sir …i just want to ask one quest …can we invest in venture capital fund .like mutual funds …….??

  42. pravin says:

    so ..there is no way to invest in flipkart..uber ..ola …zomata…redbus …bookmyshow …etc …or other startups company..

    • Karthik Rangappa says:

      As I said, you will have to speak to VCs and invest in their funds, which in turn will invest in startups. This is the only way now. You may also be interested in checking NSE’s Emerge platform where smaller companies (like startups) list their shares directly – https://www.nseindia.com/emerge/

  43. it is very much educative and in this society everybody must know it. Then only he will get a goal of his life and get independence of financial life. its name zerodha university is very much suitable.

  44. vishal wadekar says:

    i wann to learn basics of commodity trading,plz take some initiative towards it.

    • Karthik Rangappa says:

      Well, you have to take the initiative 🙂

      We already have 9 chapters in the commodities module, have you check them out yet?

  45. Roshan Vishal says:

    Very well written. I was looking for something like Zerodha varsity since ages. This is great for beginners like me.

  46. Nehasri says:

    Very Nicely Compiled & great initiative from well talented people who proves that knowledge is open for all.
    So nicely explained everything that no one can leave the forum without saying a BIG THANK YOU!!!

  47. humptydumpty says:

    I am totally new to shares.
    So i understood from this chapter that I should invest 70% in shares.
    Now out of those 70% in which company sector i should subdivide is there any guideline on that.
    Example Banks , Real estate , etc

    1) How many different sectors to invest in
    2) What ratio ?
    3) How many companies one should invest it ?

    As user who is having day job , tracking many companies and sectors is difficult.

    • Karthik Rangappa says:

      Firstly, when you invest, invest for long term. In this case, you need not have to track the prices daily. As far as diversification is concerned…you can consider a portfolio of 12-15 stocks..with not more than 2 stocks from the same sector.

  48. sir, please translate it in hindi because allmost person of up and bihar could not undrerstand english. if you do it various custmour will join to you and your strangth will grow. please care it bicause custmur can give advice better.

    • Karthik Rangappa says:

      Some of the modules are already translated to Hindi. Suggest you have a look. Thanks.

      • Satish rao chavan says:

        Sir me bi hindi medium se hu. Trading sikhna chahta hu.. plz help me 9993994428 me kese sikh sakta hu ye mera whtsp. No. He satish chavan

  49. Sir.really helpful ur module and ur suggestions..my question is
    1)on what basis should we pick up best mutual fund amongst all except NAV.
    2)how would be icic prudential diversifed fund to invest for 20 yrs.

    • Karthik Rangappa says:

      1) Some of the things I can think of – buy it based on the fund manager (his track record), expense ratio, kind of fund (avoid sector specific fund)

      2) Its quite good.

  50. Agarwal says:

    Hi Karthik,

    A great initiative, its exactly what i was looking for as a beginner.
    Knowledge is meant to be shared – you are actually practicing that others only preach.

    I have one suggestion – In the first table throughout Indian comma system is used for the values, but for total column western system is used.
    Please regularize the same for ease of reading.

    Thanks for the Modules.

  51. Satish rao chavan says:

    Kya ye study material hindi me mil sakta he… me hindi medium me sikhna chahta hu.

  52. santhosh kumar v says:

    do we have xl sheets of these calculations

  53. Santhosh says:

    Simple and crisp. Hope it stays same through the modules, thanks a ton.

  54. surbhi agrawal says:

    i am a b.com graduate pursuing CA as well, i am seeking some knowledge about stock exchange and other commodities as i want to invest. can you help me how can i gain information about it and from where should i start to invest??

    • Karthik Rangappa says:

      You have come to the right place. I’d suggest you start from Module 1, chapter 1 and read through everything one by one. Good luck.

  55. Vikas says:

    Can u pls explain first row last column of second table…..how it has got 20lakhs in just first yeae

  56. priti says:

    HII my father is having some shares in physical form..and he is having an accout with zerodha..could you please let me know the detailed process of how to transfer the physical share into my fathers demat account via zerodha..thankyou

  57. Mani says:

    How did you calculated “Retained Cash Invested @12%” I quite dont understand, please share the formulae

  58. jyadeep says:

    What is the margin used in Zerodha? Why is it negative in my case? What does it mean?

  59. Biswadeep poudyal says:

    i do not have any collage degree and as you know i can’t get any job.. Is this Stock investment good for me ? With this i have to have some running income too. will this help me out?

  60. Jaydeep says:

    Can i hold equity intraday for one overnight?

  61. ajay says:

    does equity auto square off intraday trading have any extra charges apart from brokerage?
    beacause i have read somewhere that zerodha charges 20rs for auto square off intraday(equity)?

  62. Naresh says:

    Dear Nithin, I have 2 accounts with Zerodha and I congratulate the entire Z team for great service of high quality and sensitivity. I need to open an account/dmat in my daughter’s maiden name because she has turned 18 and now carries a PAN card. I have the following Q (a) Post her marriage and subsequent to name change, I assume ( as told by your sales team ) that her PAN number will undergo name change and possibly the linked bank account as well. The PAN number itself will remain the same. So, does it mean that her stock savings will automatically get allocated to new name once we provide the new details. This will not force us to write to different registrars etc. and there will be no questions of capital gain etc. (b) Additionally, can we have nomination to her trading and dmat accounts ? Thanks in advance

    • Venu Madhav says:

      Hi Naresh,
      (a) Post wedding, you can get the names updated in our records by submitting a copy of the new PAN card. This will have no effect on your holdings whatsoever or the corporate actions your daughter is entitled to receive.

      (b) Yes, if you look at the demat form, you’ll find the nomination sheet there, you’ll have to fill the data and submit the form to us.

      • Naresh says:

        Thanks Venu , Can I assume that an account like Kotak 811 launched today would be good enough to open a demat/trading account with Zerodha !

  63. Biswadeep poudyal says:

    can stocks be the only way to earn?

    • Karthik Rangappa says:

      It is one of the better ways 🙂

      • Biswadeep poudyal says:

        i don’t have any other job to do. Can stocks be the only the source of income? i am little confused about this. can i focus only stocks for life rather than doing other jobs.

  64. Dillip Kumar Satpathy says:

    Hi Sir, I am doing Home based Medical Transcription job and maximum time I am sitting in front of my computer with good internet facility. So 2-3 months back I decided to do online share market trading (Actually it was my dream from 2-3 years back) to invest my extra money and earn more. So from that time I am studying about this from internet and I am doing some researches. Now I have decided to open an account with Zerodha. But before that I want to know some thing. Actually I have known very less in this field till now except some basic things. My question is: Is this necessary to be from Commerce background (in graduation as I am from Science) and is it necessary to have MBA for this because I did MCA (I am not telling about the qualification, I am telling about knowledge like about Economy or Economics, other business related terms and share market related terms and definition)???

    Actually I am reading your VARSITY and getting knowledge, also studying through other websites and youtube. Is it okay to start trading like this??? I can continue my knowledge gathering simultaneously with trading.

    I want to know am I eligible for this ? Can I start with small amount now? I want to know the eligibility for trading??? OR I have to know some other things before start trading with Zerodha….

    Please reply me and HELP me out……

    • Karthik Rangappa says:

      No it is certainly not required. In fact, I come from a non commerce, non MBA, non economic background. You just need the will and desire to learn to get started with trading and investing.

      Good luck.

      • Dillip Kumar Satpathy says:

        Thank you very much sir……for your reply and moral support……I will start trading in Zerodha as soon as possible….Thank you.

  65. ZT3451 says:

    Hello Karthik sir,
    I am Masud Parveze (Client ID : ZT3451)recently opened account with Zerodha. I appreciate Zerodha’s initiative to spread Trading literacy via Zerodha Varsity. It is very very useful for traders.
    Thank you.
    Masud Parveze

  66. Dillip Kumar Satpathy says:

    Hi Sir,
    I have another doubt. Actually I am studying in this Varsity and till now I have not covered all the things. My question is, what the the important topics or chapters one must know to start trading. I mean to say, is it possible to start trading without covering everything here or one must to have all the knowledge before starting……OR what are the main things one must know before opening account and start trading?
    It is right that one must study these things and market for whole life to gain knowledge and to be good in trading and investing.
    Actually I want to start immediately but I don’t know I am eligible or not. I want to know the eligibility from the point of knowledge to start trading with Zerodha….

    Please help me out…

  67. VISHNU T says:

    I’ve read about the fund transfer options to Demat account, I want to know, Is there a minimum amount that can be transferred to the account using IMPS/RTGS or any other mode. Also Is there a minimum amount that can be withdrawn from Zerodha and Is there any service charges or taxes applicable?
    Thank you

  68. Chiranjeev says:

    I heard a lot abt zerodha and it’s a safe and good trading platform. But there is one drawback as there is no RM facility provided to the customer and also zerodha should provide atleast one or two months trading for better growth in trading carrier . May be they will charge as they are discount broker

    • Karthik Rangappa says:

      Thanks for the feedback, Chiranjeev. Will pass it to the relevant folks at Zerodha.

  69. Shyam says:

    Hi Kartik,

    I have some idle money lying around and I would like to invest in Liquid funds . The reason being that I can remove them if there is some contigency. Would be great if you could guide me further. What would be the returns if I park the money for a day or a month? Can I invest it through zerodha?

  70. Sarika says:

    Hi…i am new to trading…i hav done Mtech and did lecturer job but now at home for my kids..i want to start trading as a career instead of doing my lacturer job..can i earn decent amount in it and can i grow in it…plz suggest

    • Karthik Rangappa says:

      It really depends on how you trade. It can be a quite challenging if you are new to trading. Keep your exposure low, so that you risk lower amounts in your initial days. Increase the capital after you get more confident. Usually, it takes about 3-4 years and constant reading to gain some confidence in the market.

      Good luck.

  71. vikash says:

    Sir, Is zerodha platform provides pre market session data????

  72. ravi says:

    need help with buying commodity and kite functions such as…cnc,mis,co lmt..and all.
    i already went through your manuals and google too.. but couldnt get it.
    if you could explain it in simple words.

  73. CHANDRA SEKHAR says:

    Hi sir,
    I am new to this stock market Field. I have Demat account with DP 5 paisa capital Ltd. Can I change this account to zerodha or can I trade with zerodha with this Demat account. I can invest 2000 monthly . please guide me which shares to buy and when to sell to get good profits.as new to this field where and when to invest in which one like shares,mutual funds, Intraday Trading, SIP or Multi bigger shares.how to place orders and sell.if I send money to Ur accountant through NEFT would U place orders on behalf of me and also to sell because I don’t know how and when to select and place orders and resell to get good amounts.

  74. Nareen says:

    starter want to learn basic to start trading.

  75. ARPIT says:

    I seriously wish to apply in IPOs and hope zerodha provides an access to it.
    I have been a client for a year now and have missed many good IPO opportunities.

  76. Subhankar sadhukhan says:

    I have a kotak 811 account .can i open a trading account in zerodha witg this account?

    • Karthik Rangappa says:

      Yes, you can always open a Zerodha trading account. However, I’d suggest you open a Zerodha demat itself, its a lot more convenient from an operational perspective.

  77. rjazz says:

    whats the difference between a zerodha trading account and zerodha demat ?

    • Karthik Rangappa says:

      You need a trading account to buy or sell shares whereas a demat account is required to store the shares bought. Demat account is like a bank account, instead of money, you save shares.

  78. Kudos Karthik, nithin and Nikhil. I have been following your business model from quit sometime. One thing that sets you apart from other brokers is passion that you guys have and the art of sharing knowledge and creating awareness.

  79. Sahil Hajiyani says:

    Nithin/ zerodha team..lot of people including me have a thing that once they make what they reach their daily profit/loss goal they tend to become more overconfident and then at the end of the day lose their money including what they’ve had made.. i wanna recommend this..or is there if anyway you can make an alert or something so we can just stop ! Dont know if im talking stupid it or not but it Will be very helful for begineers like me please thanks

  80. sahil hajiyani says:

    hey can i buy equity future lots and hold for few days or until i want or until the expiry?????

  81. Thakur says:

    When are we gonna have LEVEL II screens??

  82. Vinod Kedare says:

    Hi thanks for all the simplified information
    Are all materials available in Hindi?
    If yes, wots the link
    If NO can it be provided in Hindi?

  83. Ramakant says:

    Lot of efforts have been put together to simplify the content.. Appreciate the work, Zerodha content team has taken.

  84. Jikariya says:

    Hi sir
    I science background .
    I have open account with zerodha and with the help of my friend started trading in equity cash but i lossed nearly 1 lack .due to wrong calls given by experts providing tips to my friend all calls are gone reverse .
    Since i fed up can u tell me how can i trade with safely in equity as well as commodty

    • Karthik Rangappa says:

      I’d suggest you read up the stuff on Varsity before getting started. Improve your knowledge and take a more informed decision and stop relying on tips to create wealth for yourself. Good luck.

  85. nishu says:

    sir, Where is pdf file of all module? please tell me……..

  86. Shanmukha says:

    Where do we get the pdf for the complete any of the module?

  87. Rajib garai says:

    It’s really a very good work to spread the fragrance of knowledge. I appreciate you and your team. For a long time I want to trade in commodity through MCX . But I am confused a little bit with taxation . I’m a salaried person and want to know how I show my profit in my return file if I do . Actually I do file from itr 1. If I do the trade then do I have to fill the other form and I am to treat as Businessman . I have to audit my account by a chartered accountant . This is the confusion and help me please . Thanks..

  88. Subhankar Paul says:

    Hello Sir,

    Thanks a lot for such a informative and educational content of trading.
    We are a group of 4 trusted friend (all resident of India), and pooled some amount (minimal amount to start off < 40k ) for investing in share market to share the risk. Can you please suggest how can we open Zerodha account and invest as a group, complying with trading laws or taxation laws.

    Thanks in advance!

  89. Aditya says:

    Please put comma properly in total income from 1st table. I read it wrong while in 2nd table it showed properly. other people might read and understand it wrongly.

  90. Sasank says:

    Sure varsity is one of the best sources available to learn about trading. But I’m one of those guys who prefer to read it on a paper. Can you please provide the pdf or some kind of offline version, so it will be very helpful for people like me. Thank you

    • Karthik Rangappa says:

      We have updated the PDFs for all modules except 5 and 9. 5 will be done next week, and 9 when the module is completed.

  91. Aditya says:

    Hello Sir,

    Great insight. I have a small query, how did you calculate the retained earnings over there with 12%? I am not able to understand that part, so please could you explain it to me once more. Your guidance would be appreciable.

    Thank you

    • Karthik Rangappa says:

      I’ve just assumed that the savings is growing at a rate of 12%. This can be any growth rate actually. The growth rate formula assuming 12% growth and 100 as amount would be –


      • Aditya says:

        Thank you for reply sir. I’m still not clear here, I mean if i take 240,00*(1+12%) or even 100*(1+12%), its still not correct the way you have got. So, please could you give me another 5 mins of your time and explain me this concept sir?

        Thank you. I really appreciate it.

        • Karthik Rangappa says:

          Sorry, I missed this –

          Its 240,000 growing at 12% year on year for 20 years. So the formula would be –

          240,000 * ( 1+ 12% ) ^20

          Check section 6.7 in this chapter – https://zerodha.com/varsity/chapter/the-stock-markets/ to figure out how to calculate returns.

          • Aditya says:

            Hello sir,

            Thank you for your guidance. I got the answer for the first year but then what about the rest calculation after that for the 2nd and 3rd year retained cash invested and so on because i tried to calculate again and again with different methods and formula i am not getting the same answers as above. Should i take =271200*(1+12%)^18 or =240000*(1+12%)*18. Please do let me know about your method here. Lastly, I did have a look at the link o provided me and I understood about the interest rate calculation over there so thank you about that as well.

            Sincere apologies for your taking your time and bothering you again and again. I’m just keen to understand it perfectly thats all.

            Thank you again

          • Karthik Rangappa says:

            Yes, the amount increases year on year and the time reduces by 1 year. So, 271200*(1+12%)^19 seems correct.



  93. KUMAR MAYANK says:

    happy Teacher’s Day sir!

  94. simran says:

    sir i m security law student….thank you so much for providing info about security law…i fount this side too good and easy to learn…but sir u have provided info regarding to investor point of view. plz provide more detail info about capital and security law in more elaborate so that i can cover more topics through your side by reading practical example .

  95. simran says:

    ohk sir…

  96. Soorya Subramanian says:

    Hi Karthik,
    I just started off with Varsity Module 1 and it really good ,would like to know is there a book available on all the Modules.

  97. Syam says:

    Hi Karthik,

    I remember few days back seeing a topic called Quantitative Analysis. But looks like not able to find it now. Can you please provide link to that topic.


  98. Syam says:

    Hi Karthik,

    I recently started using coin platform for Mutual funds. Do you have any learning material for Mutual funds as well similar to here.


  99. Abdul Muheeth says:

    Hi Karthik,

    Kindly share the PDF URL for the above.


  100. Tanmay Mondal says:

    Hey Kartik,

    Is there any way we can invest in cryptocurrency like Bitcoin/Ethereum/Litecoin from India. Is Zerodha flexing it’s arms to help us invest in cryptocurrency or is there any other platform in India we can turn to for investing in cryptocurrency.
    Please guide.

    Thank You

    • Karthik Rangappa says:

      Not through Zerodha, Tanmay. There are quite a few platforms in India – like Unocoin. However, RBI’s stance on Bitcoin/Crypto is not too clear yet.

  101. Romita Keswani says:

    Just loved the way you have explained everything!! It makes studying stock market interesting!!
    Thaankyou so much for sharing your wisdom!

  102. siddharth betala says:

    where can i learn about the bond markets?

  103. Manoj Kumar says:

    Nithin Kamath
    Dear sir
    I am a engineering student. I know about trading.
    Dear sir, I urgently need a job. I know about a stock broker. Please give me any job. I need help. Please sir, listen me.
    I am very thankful to you.

  104. Pratik says:

    Hi Karthik,

    Your tutorials have been best. Got to learn a lot from them (still learning). After getting to learn stock market with proper information and investing, I feel stock market is the safest investment contrary to the notion that we have in India. Due to the large scale misconception people distance themselves from stock market, specially the women , the housewives. Your tutorials can really be helpful to them.
    I wish to teach my mom the basics of stock market. She does not understand much of English. It would be really great if sometime in near future your team at Zerodha can bring up this varsity chapters in Hindi. That will be very helpful for my mom and other Indians whose understanding in English is less compare to Hindi.
    Will be always grateful to you for sharing your knowledge and experience in stock market.
    “An investment in knowledge always pays the best interest.” — Benjamin Franklin

    • Karthik Rangappa says:

      Pratik, thanks for the kind words. I’m really glad you liked the content on Varsity 🙂
      Hindi and other regional languages will be a challenge as it requires translation and proofreading. I’m afraid we may not have that bandwidth now. But yes, will certainly keep this on the list things to do. Thanks.

  105. Yashwant says:

    You are Great !!!
    Wonderful, Awesome ………Speechless !!!
    Your knowledge and writing skills definitely helpful.
    I have already read hundreds of articles for the last few years but could not find such a great one.
    Thank you so much for writing such unique articles.

    • Karthik Rangappa says:

      Hey, thanks for the kind words, Yashwant. Although I think you’ve been totally generous with your adjectives 🙂

  106. Arun says:

    Hi Karthik,

    I am Arun from Bangalore and starting preschool from January and also started my business into Life Coach with name as Gurukul, I wanted to promote the Book that is published to my school children parents and few of my friends, please advice how to go about getting the bulk quantity and also if possible let me know if you are interested in giving me opportunity to introduce my participant to Zerodha and word of Stock marketing investment (something like sub broker in and around HRBR Layout, Bangalore) If you want this to be discussed offline you can reach me at [email protected].

    [email protected]

    • Karthik Rangappa says:

      Arun, thanks for reaching out and willing to help us in promote the book. I’ll connect you with a colleague of mine. Thanks.

  107. Zinnia says:

    In case of first table where money is not invested, earnings at the end of 20 years is 1.7 crores while expenses in 20th year is Rs.1553652. Now in the discussion it is mentioned that the earnings will last for 8 years. Isnt the calculation wrong? If not please explain how answer is 8 years. I have calculated as following:

    1553652(1 + 8/100)raised to the power n = 1.7 cr approx

  108. Shanmugha Priya says:

    Captivating beginning :). Hoping to invest in stock market after gaining a little knowledge in it .
    Karthik sir and team – Thank you for making the process simplified for people like us!

  109. Sachin Singh says:

    Bit off-topic, but what’s your honest opinion on Bitcoins (or cryptocurrencies in general) ?

  110. Dhiresh K says:

    I am not able to download into PDF. The link seems like an old one. Can you check please.

  111. brij says:

    Hi buddy ,

    I am a private job worker and recently permanently came back to India from KSA and now I don’t want to work, I have some extra money 300k.

    I want to make trading my next career.

    Please suggest ..

    • Karthik Rangappa says:

      I’d suggest you read through all the content here, everything that I’m aware of is being documented here.

  112. Rohit says:

    Hi Karthik,

    This is an amazing initiative. However I couldnt find thelink to the excel for the calculations on interest. Can you help me with the same??

  113. Mayuresh says:

    That information was really helpful Kartik Sir! Thanks a lot!

  114. Riyaz says:

    Very good and helpful …

  115. Swetcha says:

    I’m very new to this but got good intro from this article.
    Great effort….!!

  116. Pawan Verma says:

    will Zerodta charge me if i will sell CNC stock on the same day of buying????

  117. Brijesh says:

    Treasure is here but i can not use it.

    Sir.. please think about pepole, who hungry for getting knowledge but not well in ENGLISH.

  118. vikalp says:

    long terms Capital Gains clause needs to be updated.

  119. Akhil Sharma says:

    “You may also be interested to know that the returns generated over a long term period (above 365 days, also called long term capital gain) are completely exempted from personal income tax.”

    I believe this statement might need to be updated, now that the (2018 budget proposal) is out:
    “””To tax Long-term capital Gains on sale of Equity shares / units of Equity oriented Fund if more than Rs 1 lakh at @ 10% without the benefit of indexation from AY 2019-20 i.e. from 1st April 2018.”””

  120. Jinal says:


    Love the content here. Amazing work!
    Eagerly waiting for content and chapters on Mutual Funds.


  121. Nidarshana says:

    Dear sir ,
    I try to register for demat account @ Zerodha but it shows mobile number already exist. This is first time i try to login. so please help me to open demat account and provide accurate information about offers ,annual Fees & commission etc . I wrote feedback so many times through mail but till today i cont able get proper information . I hope this time surely resolve my issue …….

    • Nidarshana, can you call up 080-49132020 and provide the executive with your mobile number? They will provide you with all the necessary information and have your account reset to enable you to continue with the signing up process

  122. Rajesh says:


    Can any of your executive please look into the ticket 963955.
    I have raised this ticket 1 week back and still it is open.
    My funds have not been added and no one is replying.
    Can you please raise this issue to concerned team?


    • Karthik Rangappa says:

      This should be resolved soon, else request you to give a call to the support desk on Monday morning, thanks.

  123. Duvvada Harish says:

    Thank you

  124. Sumant says:

    At one point it says “As of June 2014, the typical return from a fixed income instrument varies between 8% and 11%.”
    I’m new to investing and so requesting you to please update the data. What return can i expect as on March 2018?
    Thank you.

  125. Arpit says:

    Team:I don’t if this is the right place for this or not, but I have a feature request to make.
    So is there a way to place an order on an illiquid stock, and forget about it. The order gets cancelled at the end of the day.
    But, it would be great if the order persists. So that that stock is purchased as soon as it becomes available.
    That would be a useful addition to Kite.


    • Karthik Rangappa says:

      Arpit, I know this is a great feature…but unfortunately, we cannot carry forward orders. All pending orders have to be flushed out of the system once the market closes.

  126. […] having minimum 6 months your income in savings will protect your Investment […]

  127. xavier das says:

    i really want to invest but dont know how to start reading all those comments find equity is good but no idea..

    • Karthik Rangappa says:

      Read through the main content, Xavier. Also, no amount of reading will compensate the actual market experience. So go ahead and make your first investment (with an amount which is comfortable for you). Good luck and keep learning!

  128. Vedant Chanani says:

    Is, zerodha shut.

    Application not working
    Customer care not working
    Support email not replying

    Vedant chanani

    • balu says:

      kite zerodha not working , i have lost more then 10000. what service you giving ?

      • Karthik Rangappa says:

        Balu, unfortunately, we had a temporary connectivity issue during the day, which was later fixed. I sincerely regret any inconvenience caused due to this.

    • Karthik Rangappa says:

      Vedant, unfortunately, we had a temporary connectivity issue during the day, which was later fixed. I sincierly regret any inconvinience caused due to this.

      • Mohit says:

        Sir is this still happening in 2018, its been quite a time for your company to fix such inconvenience, how can you guys win the trust, because of your such “inconveniences” people are losing money. Don’t you have the money to buy good resources.

  129. Devendra Mishra says:

    I have recently started earning and I asked a few people about mutual funds. A colleague suggested, Zerodha should have all the answers to my financial queries. Turns out, he was not wrong. These chapters are to the point and not at all confusing. Zerodha is more like Coursera.org for financial literacy. Thanks a lot and appreciate your work.

    • Karthik Rangappa says:

      Devendra, thanks for the kind words, although we don’t have material for MFs yet. Will try and put that up soon, thanks 🙂

  130. Arpit says:

    Zerodha is pathetic.
    Every other day, there service is down.
    Customer care was unreachable.

    Busy making new customers to fool.
    Moving out of zerodha.
    Ppl should do there research, and instead of going for discount brokerage, should go for more reliable ones.
    Zerodha is 3rd biggest, but 3rd class.

    • Karthik Rangappa says:

      Arpit, please don’t say that. The service is not down every day. Y’day, unfortunately, there was an outage and we deeply regret it. Things are back to normal now.

      • Arpit says:

        Sorry, for the harsh words, but my account in particular has been facing continuous issues since some time.
        If possible see my support tickets.
        Holdings data shows 0 for avg price for atleast 3 scrips, since last 2 months. Customer care mentioned that new kite system will solve this problem.
        But it is still there, check my holdings data if possible. Check La Tim Metal. I brought this scrip from kite platform. How can the avg. price be 0 for that.

        • Arpit says:

          Customer care mentioned that, I can sell such scrips anytime, but the team can’t change the avg. value. I will not be able to see buy price(avg) for few scrips. Which I bought through scrip BTW.
          If not the team, then who can solve this problem?

        • Karthik Rangappa says:

          I’ll get this checked, Arpit. Again, regret the inconvenience.

          • Arpit says:

            Avg. Price 0 again for LatimMetal, Adormul and Ibventures-E1.
            Facing this recurrent issue since January. Please get this checked.

          • Karthik Rangappa says:

            Can you please check with support once, Arpit?

  131. Arpit says:

    I can’t post screenshot here.

  132. Ravisankar says:

    I am investing through mutual funds from last 6 years, I am thinking to start investing in Shares directly. As a first thing i have started to understand the share market through various resources, someone on Quora suggested to go through Zerodha Varsity. You guys are really awesome and keep it up.

  133. Ranjeet C says:

    Hey Karthik,
    You have done extremely good work 🙂
    I would like to give one suggestion regarding comment section – Can it be in more readable format? Means the UI like question and answers which will not include lot of space and having smaller scroll.

  134. Deepak Birajdar says:

    Hi Karthik Rangappa,
    Please give some more details about Long term capital gain (LTGC) ??

  135. Arpit says:

    Avg. Price for stocks is still zero.
    This is really frustrating, all my related support tickets are closed even before the issue is fixed.
    But the issue is not yet resolved.
    Karthik, you mentioned to check with support. But that’s not helping. And I have no other way, but to raise this here on a public forum.

    I have been reporting this issue since January.
    I request you to please look into this on priority. I have wasted a lot of time following up with your customer support. Enough of that. Let me know if it can be fixed or not, Ill stop wasting my time on this issue.

    Additionally, explain it to me, how it is OK to close the support tickets before fixing the issue.

  136. Kamlesh says:

    Your page background id offwhite and font are light gray , it makes reading very diffcult , god knows, why such odd colour combination is selected, If read u r tutorial for long my reading power glass will increase,

    • Karthik Rangappa says:

      Sorry to hear that, Kamlesh. Perhaps its the theme of your device, request you to kindly check that. The content is presented on a white background with black text.

      • KAMLESH KUMAR says:

        No my comment are about the kite application ,there the font color is very light gray , it is not black. it take lot more effort compare to other Demat account provide to read your script details.

  137. KAMLESH KUMAR says:

    people may not be complaining because their focus is more of discount broking , but as as application design the objective should be ease of application usage and user friendly mess , not technology demonstration. over all you color are very light the kind of contrast it creates make it diffcult and put lot more effort on eyes to read.
    Off cource I am also continue due to discount broking , but GUI look n feel , no it is not easy for user

    • Karthik Rangappa says:

      We have so far not received any complaint on the UI part, in fact, most of the clients seem to love it. Nevertheless, I will pass on your feedback to the team.

  138. VIJAY MISHRA says:

    grate calculation , but how we select beneficial stock .

  139. VIJAY MISHRA says:

    grate calculation ,
    but how we select beneficial stock .

  140. VIJAY MISHRA says:

    grate calculation ,

  141. Aditya says:


    Would like to know why standard 4% SB Account interest hasn’t been applied to calculation of “Savings without investment”. Also, what is the source of your assumption of 12% rate of return for amount that is invested. Is there a risk-free investment option that provides 12% rate of return?


    • Karthik Rangappa says:

      I think the 4% SB account return gets eaten away by the inflation. Moreso, a conservative approach is always better 🙂
      12% is the average market return of any decent MF over 5-10 years period.

      • Aditya says:

        Agreed, inflation eats up around 4%. But, wouldn’t that also apply to the returns from stocks / MFs also? In which case, the real rate of return from stocks / MF’s will be 8% and not 12%.

  142. Dr Ashok Katare says:

    Excellent effort by Zerodha towards spread of financial literacy and nation building. Keep it up… And all the best for your future services, activities and projects. Thanks a lot.

  143. Arpit says:

    (INTSTOIL, CILSEC, SRPML, LATIMMETAL) all are zero. Get out of business you idiots if you can’t fix this small issue even after 6 months.

    Here is the complaint id with consumerhelpline.gov.in India: 803166

    • Karthik Rangappa says:

      Arpit, you have stocks which are delisted. What buy average do you expect us to show? By the way, I’m deleting all your other comments to keep this forum clean and focused towards education.

  144. Arpit says:

    Who told you that these stocks are delisted.
    Cilsec today’s volm is 6047.

  145. Lokesh says:


    I am having to post here as I do not have a way to escalate Zerodha support.

    My need is (at least it appears to be) very simple — I need to update my (KYC) contact details (email and phone) with Zerodha. I was forced to raise multiple tickets in the past couple of months because every time the ticket was claimed to have been resolved, I would receive an email or notification on my old contact details, which continues till date. The only response I get is that the details have been updated with Zerodha and sometimes receive a screenshot as proof of it.

    However, the fact that I continue to receive notifications (from AMCs) on my older email and phone tells me that the KYC details were never updated by Zerodha despite paying the required fees for the update. The response I received today says the following: “If you want to change your registered phone number or email address with the AMC for Coin, you have to send a letter to the RTA or the AMC” and goes on to list the 4 RTAs — to which I would need to presumably send letters — and closes the email with a “If you need further help changing your registered email address, phone no. contact the respective RTA or AMC.”

    Is this the de facto method to get this done?

    The convenience of having all the investments in one place is moot, if the communication regarding each one is spreading across multiple contact channels, especially if the older contact channels are rendered inaccessible. It is hard for me to believe that Zerodha will not participate in helping rectify the situation. While I have been satisfied with the platform(s), this little thing is turning out to be a point of great frustration and Zerodha Support has thus far proved very ineffective at helping resolve the issue.

    Would appreciate any help from you.


  146. Syedzaidahmed says:

    How to add money community ?

  147. Rahul Jha says:

    Principal spelled as principle. Correct it!

  148. Shobhit says:


    Can you please explain what are Class A , Class B , Class E shares etc ? I have tried reading about it at various places on the internet but couldn’t understand it fully ?

  149. Manas says:

    Hey Karthik,

    Unrealted to the post but “REALLY” important.

    About the investor margin cap based on net worth/ITR, seriously worried.

    What is the likelihood of this happening according to you and the team?

    How bad are guys like me, straight out of college with no net worth/ITR, going to get f***ed?

    • Karthik Rangappa says:

      Manas, there is a lot of speculative talks around this. Some of it does not make sense, I’d suggest we wait for what SEBI has to say about this.

      • Manas says:

        Thanks for taking the time to reply,

        Many full time traders are in panic mode because of this.

        Still, the likelihood of this happening? according to you personally?

        • Karthik Rangappa says:

          I’d suspect the likelihood of something like this is low. But really, we need to see what SEBI has to say.

  150. Manas says:

    Can’t the brokers’ lobby do anything about this?

    I’m sure they’ll have full support of traders across the country.

  151. Pardeep Kumar says:

    What is the record of maximum CAGR in 5 to 10 years sir?

    • Karthik Rangappa says:

      Well, there is no such thing as a maximum. But if your investments can maintain a consistent 12% for a long period, then you are largely on the right track.

  152. Ashutosh says:

    Do not open any account here. It’s been 20 days since I started this process and they still don’t know why my account hasn’t been created and my “designated sales manager” knows nothing. It’s like talking to a new guy everytime I call him about the delay in the account opening process. I don’t trust them and I don’t think they’ll be helpful if you ever need help after you’ve opened your account there because if they are so lazy for such an important part of account opening then I am sure they will help you for nothing after that.

  153. Prakash Kumar says:

    I m new to investing.
    How can I invest in debt and
    Bonds issued by GOI ex- NHAI.

  154. Manas says:

    Hey Karthik,

    Back again? as you may know, no decision about the net worth thing in today’s board meet.

    The most recent hurdle in the news was brokers not wanting to verify client net worth.

    Question is, can SEBI make you guys do it, despite the unwillingness? Does it have the power?

    a ‘yes’ or ‘no’ would suffice?

  155. test says:

    karthiksirrr u are awesome sirr

  156. Manas says:

    Hey Karthik,

    2 Questions:

    1 – With increasing margin requirements for FnO for positional and MIS trades,
    BO/CO margin requirements will still be the same right?

    2 – Under what scenario will you guys have to disable BO/CO orders?

  157. Bhavana says:

    Excellent…!!! varsity …!!! is awesome …!! tq so much for all your efforts.. behind this..

  158. Hey Bro says:

    • 1 Since Intraday Trading is income as a Speculation/ Non Speculation Business, so do i require to registered or get License like Gomasta or anything ?

    • 2 Will Accounting/ Maintainence of books in Tally will work ?
    • 3 Where a small trader can learn journal entries him for fno and all?

    • Karthik Rangappa says:

      1) No, there is no special license for this
      2) I’m not sure about this, best to speak to your auditor about this
      3) Yes, why not.

      • Bro says:

        Sorry actually 3rd question was any website or any information based pdf like Varsity to learn accounting by myself ?

        And The VARSITY IS GREAT. Thanks for providing such great knowledge. I have read all Modules in around 4-6 months. Liked it alot.

        • Karthik Rangappa says:

          Thanks for the kind words!

          I’m not sure about the accounting material. If you find something good, maybe you should share it with all of us here. Thanks 🙂

  159. Abhijeet Gupta says:

    Great articles sir

  160. omi says:

    To safeguard the investor’s money, do mutual funds in India hedge their portfolio against index derivatives? Are they allowed to do by the SEBI? If they do, then why is there a free fall of NAVs of all equity-based MFs?

    • Karthik Rangappa says:

      Yes, MFs are allowed to hedge their portfolios. But please remember, hedging is an outcome of the market timing of the fund manager. In my opinion, this is the hardest thing to do.

  161. Akib says:

    Can anyone explain me the second table, calculation part in detail way?

    • Karthik Rangappa says:

      1) Yearly income – this is the amount of money you earn in a year, maybe via salary. Increases by 10% year on year
      2) Yearly expense – yearly spends, increases by 8% (y0y)
      3) Cash retained – income – expense
      4) Investment – cash retained invested in an instrument growing at 12% yoy.

  162. Anchal Agrawal says:

    I literally feel I am interested in stock market but unable to see any proper direction in it as a career. Can you please help me with the career options I can exploit in stock market field and till what extent and level I can grow my career here (basically asking top and best careers in this field) ?

    • Karthik Rangappa says:

      Anchal, I’d suggest you try and get yourself a CFA certification and look for opportunities in Asset Management companies. This is your best option. Good luck!

  163. Aaliya Maheshwari says:

    Hi Mr. Karthik! I do keep interest in Stock Market but how to know whether I am really passionate for this? Please give some words of advice as I am really confused about this and it’s my peak time going on to decide the field of my career.

    • Karthik Rangappa says:

      Asliya, there is no way I can figure out if you are really passionate about markets! However, if you really are, I’d suggest you try and get yourself a CFA certification and look for opportunities in Asset Management companies. This is your best option. Good luck!

  164. Karthick S says:

    Could you please eloborate “Taxation on Equity investments held for more than 365 days is taxed at 10%, if the gains are more than Rs 1 lakh starting from 1st April 2018”. My understanding is that, this will be taxed when I realize the money and not before that. Could you please confirm?

  165. Paresh says:

    I am 33 yrs old and these are my investments:
    EPF- 1800 p.m
    PPF- 2000 p.m
    LIC – 1760 p.m
    SSY – 2000 p.m (This is Sukanya Samridhi Yojna)
    ELSS – 1500 p.m

    Almost Investing 7560 p/m in debt instruments which is for my kids higher education and marriage.
    Only 1500 p/m in equity.
    Total Investment is 9060 p/m.
    I can increase it upto 20000 p/m,This increased investment would be for my retirement corpus of 5cr and intermediate liquid requirements.

    Can you suggest me some mutual funds diversification to make a portfolio to achieve this target for retirement.

    • Paresh says:

      I missed one thing to include:
      I have considered my retirement age to be 60 !

    • Karthik Rangappa says:

      Presh, I’m not a financial planner but based on my own experience I can suggest that you need to increase the equity exposure. Avoid sectoral funds and opt for well-diversified equity funds.

  166. Dhiraj says:

    If i want to know the amount after n years, i can also use future annuity formula to figure out the investment of retained earnings at 12% for 20 years. How do i figure out when to use CAGR or Future Annuity ?

    • Karthik Rangappa says:

      Today’s value = 100
      Time period = 15 years
      CAGR (inflation) = 7%
      Value after 15 years = 100*(1+7%)^(15)

  167. thanush says:

    First of all thanks for helping normal people and teaching them about financial literacy.
    My question is: In the after investing column, How did you calculate the Retained cash @ 12%. Im sorry if the question is basic as im trying to understand.

  168. Manasa Ranjan pradhan says:

    What is minimum amount to invest in equity…

  169. Manas says:

    ”With regards to F&O – most contracts are already leverage 4 to 8 times (higher in currency/commodity). That is the nature of derivative contracts. If a broker is offering leverage intraday, it would be getting blocked from his capital

    *(btw, with all the new regulations coming in, I don’t think brokers will be allowed to offer intraday leverage in F&O soon)*

    I am guessing u telling x8, x10 is basis brokers who block between 25% to 50% of overnight margin requirement for option writing for intraday trades”

    From nithin’s reply to a thread on TradingQnA, the part between the asterisks, is that true?

    Thread: https://tradingqna.com/t/discount-brokers-and-high-leverage/50864/3

  170. Anchal Agrawal says:

    Which is better option to invest for a decent earning person- PPF or SIP?

    • Karthik Rangappa says:

      Both are super long-term products, given this, I’d opt for SIP any day.

    • Arun says:

      PPF –
      -fixed income say 8.x % (varies on govt announcements slightly )
      -Income Tax Exempt, exempt, exempt
      -Safety – Central Govt
      -Loan is possible
      -Lock in 15 yrs( 5 yrs if urgent)

      REturns depends on which Scrip/Stock/company u select (thorough study and invest)
      High risk /high Gain- possibilty of loosing more
      depends on Market /Economics of company and Macro
      No fixed return

  171. SIDDHANT KUNDU says:

    Isn’t forex trading also one form of investment, I felt that also could be added in the types of asset.

  172. Arun says:

    We can have more such mutual funds–> Debt funds, Equity,hybrid , Ncd,P2p etc in investment section apart from equity,fd, gold,silver,real estate

  173. Manas says:

    Hey Karthik, back again 😅

    IF the ‘brokers won’t be allowed to give additional intraday leverage for FnO’ happens, would BO/CO leverage also not be allowed?

  174. Kiran says:

    Hi Karthik,
    I see that intraday leverage for all the companies are reduced. Previously icici bank was 14 times of the amount which we have in our account. i mean if i have 1lakh, i could have used 14lakh for intraday and now its only 6.5lakh. Even yes bank was 8 times and now its only 3.5 times. Why it is reduced? is it because of sebi rules?

  175. Aditya says:

    Hey, I can’t understand how ETFs could trade at discount or premium to NAV, as if this were there the case one could make risk free money guaranteed return, assuming I could sell the ETF in pieces, as individually each share it constitutes.

    • Karthik Rangappa says:

      There is something called as ‘tracking error’, Aditya. Tracking error is the difference between the actual ETF value and the index its following. The difference arises from taxes, slippages etc.

  176. Dhiraj Chandra says:

    Why can’t zerodha make varsity available on amazon and flipkart in book format in color print version.
    There is no enjoyment in studying around 1000(around 100 pages *10 modules) pages on computer or tablet screen,If i download in PDF format and get its hard copy in color print then for 1 module price will be 100 pages*10 rupees/page=1000 rupees which is too much expensive.
    I started googling from what is share,what is stock etc,i watched many videos on YouTube to get the concept from beginning since i am a beginner ,i downloaded many books based on investment but none helped me really.I have wasted 1 year in doing so because none of the material was so systematic
    Finally I came to know about Zerodha Varsity and yes this is the material every beginners needs to get into stock market.
    As per my effort on researching the best material to learn about stock market ,i am damn sure Zerodha Varsity is the best material.
    So please make it available in color print on amazon and flipkart.

  177. Aniket says:

    how did you calculated the fixed ? can you tell the formula? I’m noob

  178. Bhashkaranand Joshi says:

    I’m new in stock market & want to invest but I want to know how is zerodha as I found many review website at paisowala or as mouthshut & another website so I need more review about Zerodha so it helps me to find the best out of it.

    Does Zerodha provide any platform where we can find a review about Zerodha, If yes Please help me?

    Thank You.

  179. SUJIT KUMAR PAL says:

    How can I choose profitable share…what should be learn to gain profit from market.

  180. Aman says:

    Can anyone here explain to me… as to why the 2nd example of investing in an ‘investment option’ starts with Rs.2,067,063/-? instead of taking it like depicted in the first example from Rs.240,000/-?
    Is the average individual supposed to first invest in FD for 20 years and then getting started with ‘Investment Options’?

    • Karthik Rangappa says:

      Rs.240,000 grows to Rs.2,067,063/ in 20 years at a growth rate of 12%. So in a sense, this is the amount of money at the end of the tenure, in this its retirement.

  181. srikanth says:

    hello karthik sir,

    i have some knowledge about stock market. but i am government employee in telangana.
    can i invest in stockmarket directly. is it legal?

  182. Manas says:

    Hey Karthik,

    Any clue when the BO leverage for Equity cash will go up back to 25x+ from the current 15x?

    Asked on tradingqna too but got vague non answers

  183. Vijayant says:

    As written if we invest in equity, it gives profit of at most 20% and if we subtract tax then net will be 10%( at most ). So taking higher risk for lower returns??

  184. Aqil says:


    When is the iOS app expected to release?

  185. Dhiraj Chandra says:

    I have done my B.tech from Information Technology in 2015 and after that I was working in IT industry. From my matriculation itself I was highly passionate about stock market but because of lack of awareness about stock I continued my career as others were doing in surrounding,but now since i became aware about stock and I did trading as a client of Zerodha as well and I want to quit everything related to IT Industry and want to deep dive into stock market field only so how Zerodha can provide us opportunity to work with Zerodha.
    As I have realized Stock market is a very challenging field so if someone tries to make this as a secondary field in his career share market can’t return good to them. And Once I got into trading I don’t find any work interesting other than trading so I can’t think to continue the it job parallel.
    I am ready to compromise with my salary also since I will be a newbie in investment field.
    Only Studying Zerodha Varsity theoretically is not enough as i have realized,Environment where I want to listen see speak know do everything about markets only.
    So can you please guide me how i should proceed with Zerodha for the growth of organization and personal as well.

  186. Akshay says:

    Sir can you tell me how small case earn a profit ? This question is different from the topic I will be more happy if you answer this question

  187. Akshay says:

    when you buy a small case broker gets commission for buying the small case how small case company earn a profit by when customer buy the small case? Please answer

  188. BPS Bais says:

    In Table #2
    The Last Column named “Retained Cash Invested” is Totally Wrong.
    The Correct Value should be as follow.

    6,00,000 3,60,000 2,40,000 2,68,800
    6,60,000 3,88,800 2,71,200 3,03,744
    7,26,000 4,19,904 3,06,096 3,42,828
    7,98,600 4,53,496 3,45,104 3,86,516
    8,78,460 4,89,776 3,88,684 4,35,326
    9,66,306 5,28,958 4,37,348 4,89,830
    10,62,937 5,71,275 4,91,662 5,50,661
    11,69,230 6,16,977 5,52,254 6,18,524
    12,86,153 6,66,335 6,19,818 6,94,196
    14,14,769 7,19,642 6,95,127 7,78,542
    15,56,245 7,77,213 7,79,032 8,72,516
    17,11,870 8,39,390 8,72,480 9,77,178
    18,83,057 9,06,541 9,76,516 10,93,698
    20,71,363 9,79,065 10,92,298 12,23,374
    22,78,499 10,57,390 12,21,109 13,67,642
    25,06,349 11,41,981 13,64,368 15,28,092
    27,56,984 12,33,339 15,23,644 17,06,481
    30,32,682 13,32,006 17,00,676 19,04,757
    33,35,950 14,38,567 18,97,383 21,25,069
    36,69,545 15,53,652 21,15,893 23,69,800
    3,43,64,999 1,64,74,307 1,78,90,692 2,00,37,575

  189. Chandra says:

    I am a beginner , now i want basics knowledge to start the stock buying. can i believe it is a good start

    • Karthik Rangappa says:

      Yes, indeed. Please read through, the more you do, the more confident you’ll get to start the transactions in the market.

  190. Wahid says:

    Dear Zerodha,
    Would it be an opportunity to make the money signs just in dollars $,
    because from International view it is ease to understand. It is just a suggestion and I think it is more clearly understandble to an international audience.
    I do understand that from the perspective of Indian investors audience, is in Rs.
    But in my opinion would be more clearly for an international audience if you could explain it from the dollar perspective.

    Thank you again for the great platform that you made.
    Best regards,

    • Karthik Rangappa says:

      Wahid, that is a valid concern. But I think I’ve used Rs.everywhere on Varsity and would be a task to change that value now. However, I’d suggest you kindly ignore the currency here and just work with the numbers. Thanks.

  191. KARN says:

    Hello Karthik sir first of all heartily thanks to you for making this varsity for people like me who want to learn stock market. Dir my question is i want to learn technical analysis and be a good trader for that what should i do??

  192. KARN says:

    Thanks sir for guiding so sir only that module can help me to reach my goal?? After reading how to implement what you say in varsity??

  193. K Bhaskar Reddy says:

    First, I thank you Karthik Rangappa & Zerodha for your initiative to spread financial literacy through zerodha varsity that too free of cost, each and every chapter in this varsity is very use full for a beginner. I have 4 years of experience in stock market having a little bit knowledge of stocks market. I basically belong to AP state in AP many people (beginners) are trying to invest in stock market but they don’t know much about stock market and you don’t believe you will find hardly 1 book in telugu about stock market written by Mr. Kiran Kumar long days back. After reading your Zerodha Varsity chapter and examples I’m impressed. I request your highness if you allow me to use your varsity material to translate the same to my local language “Telugu” and publish in my telugu blog. Not all the content only basic knowledge data of the stocks market. And I recommend to all my viewers those who are good in English to read all the chapters from your Zerodha Varsity. I will proudly say in my blog that the content is taken from Zerodha Varsity and translated to Telugu for your better understanding.
    Waiting for a positive reply.

    • Karthik Rangappa says:

      Thanks for the kind words, Bhaskar. Please feel free to translate the same, we have no issues as long as you give us some credit 🙂

  194. Pankaj Agarwal says:

    Just want to know if the content here in website and the content on Mobile app is different because I found it different.
    Pls. clarify.


  195. Suresh Gupta says:

    Hi Karthik,

    Hope u are doing Good.

    I am trying to save my charts using the SAVE Option but the charts are getting deleted when I login again.
    Is there any way to save the charts and get it displayed while logging in for next time.


  196. Suresh Gupta says:

    Hi Karthik,

    I tried the options of saving layout but it is getting refreshed after specific time. For eg: I saved the chart yesterday evening but I am unable to view it in next day. Is there any settings needs to updated to increase the timeline.


  197. abir sen says:

    this is 15 chapters of Module 1. But where is Module 2 ?

  198. Ajay Joshi says:

    What is the Zerodha brokerage for investment in Tax free bonds such as NHAI, REC etc


  199. SivaSaran says:

    I like to work with zerodha. Help me how

  200. hari vishnu says:


  201. Kumar A says:

    Since Zerodha is not a banker itself, which Bank it uses to open client’s Trading account?
    Is it IDFC bank ?
    Ofcourse, for Demat Account, they use Depositary CDSL.

  202. Kamal Soni says:

    First of all very nice work. Great knowledge put together. Really Appreciate it.
    I am a beginner. How many modules do you think should be read before investing for delivery/holding investments?
    Many Thanks.

  203. Dhiraj Jaisinghani says:

    In the Real Estate section, you’ve mentioned commercial and non commercial land. Other than land, i feel we can also consider under-construction apartments, pre-leased office spaces and even REITS as a source of investment.

  204. Vidit says:

    Hi Karthik, I am currently invested in Mutual funds through SIPs from last 4 years with monthly amount of 40K allocated to various equity based schemes and this includes tax saving SIPs (ELSS) & started all with a financial adviser. Want to expand investment in equity via stock trading but cannot do trading @ my end. My Question: Does Zerodha helps to select which stocks to buy/sell on a periodic basis + detailed portfolio assessment & restructuring services for individual users?

  205. Vidit says:

    Please advise, How should I be taking up stock trading using Zerodha as an individual investor.

  206. Mahesh Gore says:

    Hello Karthik,


    You have mentioned this link in the previous comment saying that it will help get insights on how to go about buying and selling stocks on the Zerodha (Kite) Portal. But when I try opening this link it says that the video is private.
    Could you please help me with, how I could go about learning the same

  207. Chaitanya Pathak says:

    Hi Kartik,

    Hope you are doing well. I am new in the equity market but i appreciate you and your entire team that all these basic learning stuff you brought on single digital platform and explained in such way even beginner can understand this.

    As you mentioned in this article directly investment in equity gives higher returns (14-15%) but amount of risk involved in that too much. I have studied that if we do some investment mutual fund through AMC it will also gives higher returns with less risk.

    So why should we invest directly equity market if MF gives me same returns with less risk involved?
    your help on this will be helpful.

    • Karthik Rangappa says:

      Thats right, Chaitanya. You can get direct exposure to equities by investing in stocks or MF. They both work.

  208. Chaitanya Pathak says:

    Thanks you.

  209. Rohit Kapoor says:

    Can I use varsity data and publish it in the form of a book since Zerodha doesn’t have resources for it?

  210. Mahesh Gore says:

    Hello Karthik,

    In my previous query, I had asked you if there was any other link on which I could look up on how to buy and sell stocks on the Kite portal.
    You had mentioned that the below link was inactive.


    Have you been able to find any source ???

  211. Mohan Vadivel says:

    • Hi sir, is there is any module related to ETF?
    • Why I can’t able to login into “Kite Connect” with my login credentials, do I need to signup separately. Do I need to pay any separate charges for using “Kite Connect”?


  212. James says:

    Hi Karthik,
    I’m an NRI and new to equity trading. Plan to set up an account next month. I already have NRE/NRO savings accounts in SBI & CBI. Can open Trading and DEMAT account with Zerodha. Should I use the existing savings account or have savings account with any bank that Zerodha is linked with? Is that comfortable from the trading point of view? Please suggest.

    James Philip

  213. James says:

    Thank you !!

  214. Dheeraj says:

    Hi Kartik, a quick question.

    In the section where you’re showing how savings are being compounded and accumulated, i applied the same situation and values in excel. While calculating the total idle savings it amounted to 1.8 Crores instead of 1.7 and Savings reinvested amounted to around 4.5 Crores intead of 4.2.

    I crosschecked all the values and everything is correct but just that when i add up the savings column and the reinvested savings column, values are different (mentioned above)

    Not a big thing but it would be great to get clarity on the same.

    • Karthik Rangappa says:

      Ah, without the excel I can’t really figure where you’d be going wrong. Btw, I double-checked mine, it seems ok, unless I’m missing anything obvious.

  215. Dheeraj says:

    I agree on the above point which is why I’ve shared the excel file with you via Linkedin message. Would be helpful if you could go through the same.

    Thanks and sorry for the trouble.

  216. santosh says:

    I am a novice investor, I would like to request you to explain this.
    1. how is the money generated in stock exchange or does it work on concept “someone’s loss is other’s gain”. OR is it like there are people/investors/bankers who invest part of their excess money into market that keep it running?
    2. When we hear in news “Indians lost XX lakh crores because sensex down by thousand points”, consequently does someone make profit out of this situation?
    Thanks for your help.

    • Karthik Rangappa says:

      1) Works on the concept of wealth creation. The someone else’s loss etc bit works in the F&) market.
      2) Hard to conclude. Some money will be made by short-sellers though.

  217. trader says:

    How many number of times is leverage offered under CO for equity nowadays? the zerodha bulletin states it as “Minimum 25% of the VaR+ELM mandated by the exchange”… can you explain how i should calculate it so that i can know the number of times leverage offered under CO for equity?

  218. DINESH SEN says:

    PLEASE REPLY IF CMP OF STOCK IS 104.90 RS. AND I place BUY SL order – Price -106, Trigger Price – 105.05 at 10:00AM
    Now if the Stock price direct jump from 104.90 to 106.90 then is there my order will open or execute or pending??

  219. gokul says:

    In the given example – first year you retained Rs.240,000/- which when invested at 12% per annum for 20 years yields Rs.2,067,063/- at the end of 20th year.
    How is the retained cash calculated?

  220. Robin Sethi says:

    Hi Karthik,

    Can I use your material in order to share the financial knowledge with others?

  221. Saurabh Sharma says:

    Hey Karthik,
    I really feel lucky to find this treasure randomly on quora. I am feeling RICH only by first chapter and I really simplicity of the chapter.

    I just want to ask what is the difference between investing and trading ? If all this Equities and Mutual Funds are for long term investing then how some sell and buy stocks on daily bases to run their homes ???

    • Karthik Rangappa says:

      Very happy to note that, Saurabh. Thanks for the kind words. Yes, trading is a short term approach while investing is a long term one.

      You can buy and sell stocks directly from the stock exchanges and transact (buy/sell) at any frequency (short term or long term) you want.

  222. Robin Sethi says:

    Yes Karthik, on the mission to make more people financially literate. I recommend people to use varsity and learn how to go about your savings. Also, recommend books like Rich Dad Poor Dad to have a different perspective about money. Varsity is doing an amazing job and all the credit goes to you and your team. Certifications is another addon that makes it attractive to college-goers in order to improve their profile. Your work is magic. I am currently studying options and it’s smooth as butter. I couldn’t have found a better platform(in fact have tried lots of platforms but the material here is incredible). I come back every now and then to old chapters as and when my people whom I promote varsity couldn’t understand a particular topic. I am a tutor at heart and your platform provides great support. Thanks, hope to meet you someday. Stay home Stay Safe. 🙂

    • Karthik Rangappa says:

      Very happy to read this, Robin. We all have a collective responsibility, and I’m glad you are an amazing job at it 🙂

      Stay safe!

  223. Bhagat says:

    i just want to know that…. we have to buy shares when price falls and sell when price goes up right???

  224. Hitesh Manger says:

    Hi, Sir, I have completed this module and cleared the exam in the first attempt, also certificate is generated. I want it in PDF format. So, please guide me to get it.

  225. trader says:

    Has zerodha stopped offering higher leverage (15-20 times) for intraday equity BO/CO products? it has been quite long and now markets are also not that volatile…still leverages are pretty low than before..why?

  226. Abhijeet says:

    Hi Karthik, Can you explain the second table Retained Cash Invested @12%. Now suppose I have 2,40,000 for the first year and I invest it for 20 years I get 20,75,089. What about next year investment aren’t you investing it next year or aren’t you considering it. Because every year there will be a surplus amount. Do explain this.


  227. Rahul says:

    So will this be a lumpsum investment/ SIP ?

  228. Karn says:

    Do we have any financial newspaper in Hindi ?

  229. Jk says:


    When will zerodha allow clients to invest in US stocks? I thought it would be allowed in 2019 but still there is no option.

  230. Harsh says:

    What is the formula for calculating the amount in last column on table 1.2

  231. ishan thakur says:

    hi zerodha, im a student in 11th grade, i want to go into the business path. where can i increase my knowledge so that i can become successful, i need some help. i dont know where to start and from where should i get the knowledge im looking for. and also im facinated by markets and finance

  232. ishan thakur says:

    ok karthik thank you, another thing are these modules very in depth or its just to clear up the basics and build my base?

  233. ishan thakur says:

    thanks karthik, and yeah i will finish all modules

  234. Surbhi says:

    I want to learn basics about investing and stock market so I have come here. I have installed the varsity app in my phone but I wish to study from the PC now. So, how do I continue with the same email id? I had logged in with Google in my phone. However, when I enter the same mail id on PC to log in, it does not recognize.

    • Karthik Rangappa says:

      You dont need any login on the web, you can directly comment and read. Login is required only for the app.

  235. Surbhi says:

    Thanks! Also, where is the quiz section?





  238. Sunil Dutt says:

    WOW !! This is superb development in this varsity. After long back, I gone through this again. Thanks!!

  239. Surender Baloda says:

    Hi Kartik, you are doing a wonderful job to increase financial literacy in India. As said by Robert Kiyosaki, the biggest asset for a individual is his mind. And you are are doing good work by clearing myths of people related to stocks.

  240. alok says:

    Initially, I did intraday trading as a parallel source of income and I lost some amount, now because of COVID 19 I lost the job,so this time I want to do serious trading,
    so till next one month I am going through all material available on Zerodha varsity, thank you for providing top class knowledge,i highly appreciate your effort, please share the external link too , so that we can learn more.

    is paper trading available?

    • Karthik Rangappa says:

      Sorry to hear about that, Alok. I wish you all the best. Please ensure you have adequate knowledge before you deploy your hard-earned money. Unfortunately, we don’t have paper trading.

  241. Jatin says:

    I have selected the following ETF to buy (hold / delivery position) from zerodha platform. The investment amount is 1,00,000/- (one lakh in one go). Take below as an example. Amounts taken to nearest round value for easy understanding.
    niftybees @ rs. 100 @ 200 qty = 20,000/-
    setfnif50 @ rs. 100 @ 200 qty = 20,000/-
    setfnn50 @ rs. 250 @ 200 qty = 50,000/-
    icicinifty @ rs. 100 @ 100 qty = 10,000/-
    The biggest query is that VOLUME & VOLATILITY. I heard that apart from NIFTYBEES , other ETF are not- recommended by many analyst, youtube experts , as instantly 100 or 200 quantity buying/ selling couldn’t be possible in one go due to less interest / low demand / less traders on those. So it would not be possible to trade as short term and buy sell 100-200 quantities in one go. How far it is true / correct ?
    (Note – I don’t want to treat ETFs as SIP or mutual fund as I have some different outlook on it , and I already have diversified SIP portfolios. This ETF investment I only want to take tension free gain. Once nifty become up , then take the profit by selling and buy on low again and go on , rather investing in stocks and watch , monitor )
    So please advise , whether the above 4 ETF are ok to invest , or only at NIFTYBEES considering my above concept.

    • Karthik Rangappa says:

      Thats right, Jatin. The liquidity is poor in ETFs, but some of these are ok. I’d anytime prefer an index fund

  242. Jatin says:

    Thank You Sri Karthik Rangappa for replying the query very fast.

    If possible kindly share prefer 2-3 index fund as you mentioned for knowledge/ educational purpose.

  243. Ziaul says:

    Why can’t we just change our savings currency to something like Qatari Rial or Swiss Franc, as both these currencies have inflation rate of -3.06% and -1.3%. And we can easily beat inflation, because if you will see what happened in Turkey or Argentina their currency suddenly loosed value due to high inflation and if the inflation crosses 20% then it gets extremely hard to make any profit.

  244. Piyush Raj says:

    Sir in the second table, how did you calculated the interest on retained income @8%p.a for 20 years i.e rs. 20,67,063?

  245. Manas says:

    Hey Karthik…unrelated question,

    • massive respect fo you guys for building a reliable and sleek trading platform but…

    • why so conservative in terms of leverage?

    • know a few shady brokers who provide OTT leverage until…

    • found even ICICI / Kotak give fair leverage ( much more than zerodha ) for some of their intraday products…so why not you guys?

    • Have to switch to them for this sole reason

    • tried asking on tradingqna but to no avail…

    • genuinely clueless as to why Zerodha won’t?

    • Karthik Rangappa says:

      We are risk-averse and conservative as a broker, Manas. In fact, I think this is how a financial services firm catering to capital markets should be. Excess leverage can kill not just the broker but also the clients. The markets have taught this lesson one too many times.

  246. Manas says:

    Hmm…god bless

  247. Sushmita Dhamanakar says:

    What is the calculation for the second table – Retained Cash @ 12% ?

  248. Rakesh says:

    Are the mutual funds part of Equity?

  249. Harsha Hayyal says:

    what do you think about stock advisors for intarday/short term ?

  250. Manoj Kumar says:

    Hi Karthik,

    In both the tables, from 11th year onwards, cash retained exceeds the cash expended. Am I missing something here? Just a confused reader.

    Thanks in advance,

  251. Manoj Kumar U says:

    Hi Karthik,

    Sorry for commenting too early, I just worked it out and it is right. The person gets a hike of 10% whereas the cost of living only increases by 8% a year, which at a point, makes him save more than he spends (from 10th year in this case). Thanks for getting back soon 🙂


  252. AMISH KUMAR says:

    Dear Sir/Mam,

    My Name is Amish Kumar, My Client ID is XJ9622
    I have downloaded my Console Report of Stocks, Canara Bank Shows in Unrealized Profit/Loss Statement.
    But I have already sold Shares of Canara Bank.

    I did not have any single stock of Canara Bank in My Portfolio.
    Then why Console Shows Shares of Canara Bank with Unrealized Loss.

    Amish Kumar

  253. AMISH KUMAR says:

    Ticket Already Created on 27th June 2020.

    No body bothers about to reply on ticket.
    worst Service. No body pick up the Phone.

    #20200627431120 – Canara Bank Unrealized Loss shows in Console.
    Dear Sir/Mam, My Name is Amish Kumar, My Client ID is XJ9622 I have downloaded my Console Report of Stocks, Canara Bank Shows in Unrealized Profit/Loss Statement. But I have already sold Shares of Canara Bank. I did not have any single stock of Canara Bank in My Portfolio. Then why Console Shows Shares of Canara Bank with Unrealized Loss. Thanks & Regards, Amish Kumar 9815652307

  254. glaze says:

    What about REITS?

  255. Sudarshan Praveen says:

    Lovely initiative to educate people on this topic
    Its so very important for everyone to know about this
    Just a kind suggestion
    As on today bank FD rates are varying from 5-7% so it would be better to use this for an explanation then 9%
    Especially for someone who will not read the comments section

  256. Abhiraj Shirish Damodare says:

    Pdf cant be downloaded why..?

  257. Ram says:

    Hey Karthik! Lovely podcast, stunning! Just had a little sound issues. Looking forward to many more!

  258. Ram says:

    The one with Ankit Chawla, are there more?

  259. anil says:

    dear sir
    good afternoon,

    sir please guide me about trade.
    sir suppose today in the morning i buy SBIN @ Rs. 180 in CNC order & later in the afternoon the price will go up SBIN @ Rs 185 could i exit the my Trade because i buy SBIN in CNC (for delevery)
    and also explain about any penalty for this

  260. Aditya says:

    great post.

  261. rahul says:

    sir do we have whole information in these modules about stock market futures and options trade analysis chart patterns and so on..

  262. Somesh says:

    what’s the commission zerodha charges for CNC & IntraDay trades?

  263. sowmya says:

    hey, this is an amazing work right here, i loved every article if u do permit i would like to make a youtube video on it n would definetly give you and zerodha the credits, it would be an amazing learning experience if u would agree and support it!

    • Karthik Rangappa says:

      Please go ahead, as long as the due credits are given 🙂 Also, do share the Youtube link whenever it is ready.

  264. Mustafa Doctor says:

    Very informative module

  265. Manas says:

    hey Karthik,

    with the leverage restriction from december, how much of an effect is this going to have on the impact costs (quantifiably) ?

    assuming you guys ( team Z ) would have a fairly accurate answer because of the data vs us just guessing….

    • Karthik Rangappa says:

      This won’t have a big impact on the impact cost itself, Manas. Yes, initially the volumes may drop, but it won’t be much I suppose.

  266. Manas says:

    you’re confident about this?

    That slippages won’t be 5-6x of the current scene once leverage drops?

    • Karthik Rangappa says:

      As far as we understand the leverage will be uniform across all brokers. So this will have an impact, at least in the initial few weeks. But I suspect the impact will alter the order book. Also, this is a fairly tricky call, I quite doubt if anyone can speak with certainty here.

  267. Manas says:

    Okay, guess will have to wait and watch…thanks for taking the time to reply

  268. Michael Thiemonds says:

    Hello Karthik,
    I really like your well-structured, diverse, informative and very detailed website. Congratulations!
    I would be interested in which providers of historical stock market data you use for the development, optimization and testing of your trading systems. Are they paid course data providers? Do you prefer different providers for different underleyings and again there are different time units … (grin)?

    Many greetings from Cologne,

  269. Aaron says:

    Hello karthik
    My father is also an stock invester and he prefers me to invest fully in equity
    So now if i invest 70% in equity,20% in FD and 10% in gold will i gain profit or loss

  270. Shubhankar Varshney says:

    The data can be made more realistic. If you check the gold prices from 2000-2019 you will see that the CAGR=11+%.
    Also you are stating inflation at 10%, what is the country going to hyperinflation or something.

  271. CA Sagar Prajapati says:

    Really wonderful work !

  272. Anas says:

    Hi Karthik

    I’d like to confirm if ‘varsity mobile’ app is same as varsity by Zerodha given on this link? https://zerodha.com/varsity/


  273. Maha says:

    I have better understand the concept.😊

  274. Senthil says:

    Thanks Karthik for making this content very well and free to everyone. I just finished first page, totally new to this stocks, but I understand each and every line. Amazing man! Thanks 😊🙏.

  275. Anurag says:

    Hello sir,
    I’m a beginner in finance and I recently finished the first module. I’d like to let you guys know that what you’ve created is really a work of art. Everything is perfectly well explained for beginners. I’ve a few suggestions:
    1. Just after a chapter ends and comments start a ‘ go to top’ button would be cool.
    2. If comments could be sorted in reddit fashion or maybe just a ‘question answer filter’ which would sort and put those comments which have ‘question marks’ in them at top, it’d be great. Sometimes I’ve some doubts left or maybe someone just asks a good follow up or maybe even off topic question and it’s good to see them. But going through 100s of comment to find questions is tedious. I remember while writing this comment that can be done with in browser ‘find in page’ feature too but it’d still make a good FAQ section post chapters.

    These are just some features that I felt missing but I still love varsity and find it perfect.

    • Karthik Rangappa says:

      1) Will check the possibility of this
      2) Agree, but last I checked, this was a bit tricky to implement. Let me re check.

  276. Anurag says:

    Hello Karthik,
    Thanks for taking your time to reply. It’s really amazing that you’re still replying to all these queries.
    1. I said this one for ease of browsing. Instead of ‘go to top’, ‘previous chapter’ and ‘next chapter’ buttons would work great too.
    2. A 100% accuracy in filtering questions might be tricky but I tried the ‘find in page’ feature to filter comments with ‘?’ and it was like 70% worth a read comments.

  277. Abhishek Madiraju says:

    Hello Karthik,

    I find these articles concise and really easy to understand. I wanted to know if you know of any resources which could give me more information regarding investing in the United States? I read most of the basics of investing over here. But, if you could point out to some resources related to the governing bodies, regulatory and taxation rules over here, that would be great.

    • Karthik Rangappa says:

      Ah, I’m really not sure about US investing, Abhishek. I’m not sure if there are any resources for that.

  278. Pratik says:

    Hi Kartik,

    Thanks for curating a beautiful content.
    I am 30 yrs old. When you suggest to allocate 70% of investment to equity, which one should be preferred; via MF route or direct investment in the stock market.

  279. Sudhakar koyani says:

    Sir any course would you prefer for stock market?

  280. Devanshu Sharma says:

    I am here to learn about Investing. After completing all modules of Varsity, should I expect that I would have enough knowledge of choosing a particular stock and investing in it(including learning about companies fundamentals & the things needed for an Investor to check on before investing)?

    Because I think that this course is more Trading Centric.

    Or, can you mention specific modules only for investors? By which folks like me don’t spend their time reading about Trading.

    I am excited to start this Course, waiting for your response. 🙂

  281. Jaipal says:

    Hello Sir,
    You used the term ‘early age’ and ‘long term investment’ in some of the comments.
    I have two questions:-
    1.What age is ‘early age’ in your opinion?
    2. How much time can be minimally considered as ‘long term’?

  282. Akash Khandelwal says:

    I am a keen investor, always invested money in different sources of income. This article has been beautifully written about investing.

  283. C G VENKATESWAR says:

    excellent study material.

    finding it very interesting to read and learn

  284. vyomika jadav says:

    hey karthik, this is just an appreciation post foryou. i am newbie to equity market and varsity seems great to understand the complexity of markets. god bless you for this good work.

  285. Roshan says:

    Hi Karthik,

    I am new to investment and having less knowledge on where to invest.
    But I have long term goal to invest and basically I invested in mutual fund for 10 years.

    Is there any suggestions from your side in where to invest to get more return for my future saving.

    I have 100K per month salary but I don’t know where to invest for better returns.

    I started investment in mutual fund long term, LIC for safer return.

    Please guide me on investments for long term goal.

  286. Madhu says:

    HI in the second column, the cash retained invested at 12%, CAN YOU BREAK DOWN HOW YOU DERIVED THAT FIGURE?

  287. vednat says:

    Thanks, karthik.
    simply, amazing.

  288. Prince Gandhi says:

    Is trading in Futures&Options and short selling allowed for everyone once we have an account for equity with Zerodha. Is there any verification required separately to leverage money from Zerodha if we short sell for multiple days (sell today and buy after some days)? Because short selling for multiple days means we have to lend the shares from someone and pay interest for the time we lend, right?

  289. pranay says:

    Can i relay on stock market for primary source of income?

  290. I prabhakar acharya says:

    Respected Mr. Karthik ji,

    I have opened my dmat account couple of days before. I am 55+ yrs of age and during my service period never bothered of savings. Now being at the verge of retirement, need has been felt and thought of venturing stk market. However, before investing would prefer to go through the modules of versity created by yourself to gain confidence.
    At times I may be disturbing yourself for clarifications.

    Warmest Regards,

  291. I prabhakar acharya says:

    Dear Mr.karthik ji,
    What is the definition of equity / Pl elaborate.


  292. sujith says:

    I heard people say, they earn more money in stock market than a job in MNC.(got some ads in insta)
    is it true ?

  293. distribution patern says:

    is there any tool available in the kite to identify distribution patterns?


  294. R k Jain says:

    I m joining the zerodha varsity as a fresh learner.

  295. Amit says:

    Hello Karthik! Thank you for this wonderful article. Before I continue and finish this & remaining modules, I want to know your suggestion.

    Unlike many people here, I don’t have a high paying job. I get about ₹22k per month of which I’m able to save only about ₹4-5k per month in my bank savings. Considering my salary, do you recommend me to read these modules and start investing?

    • Karthik Rangappa says:

      Amit, don’t worry about the amount. The idea is to start without wasting time pondering about it. If its of any comfort, then I started with a Rs.2500/- SIP 🙂

  296. Arnav Gupta says:

    In the 2nd part where the person is investing at 12% pa. Why is it assumed that it is being invested at the year-end? Isn’t the person losing the opportunity cost of 1% pm by not investing monthly?
    I get that it ease the complication of the calculation, but can you tell me from the logical perspective

  297. Suraj says:

    Can you pls make a module or article on mutual funds? I would like to learn about mutual funds.

  298. v k shukla says:

    very basic information but explained in simple and systematic manner

  299. saurbh agrawal says:

    hi karthik,
    The content is written in simple language and easy to understand, Thanku so much Zerodha.
    It is really helpful for me to understand investing and trading .
    keep me updated sir
    i am also sharing my knowledge which i got from from varsity to my friends.
    thanks zerodha,

  300. Vartik Aghi says:

    I am a CA by profession. I have been incurring significant losses in stock trading since past few months, (mostly because of the F&O Index trading). I just want to learn some technical analysis to understand which companies to choose to invest in from a long term perspective. I generally rely on my friends for stock suggestions but some knowledge of my own would be really helpful. Please if you could guide where to learn, learning intraday trading would be an added advantage, I am ready to invest time and money on such learning.
    Thanks in anticipation.!

    • Karthik Rangappa says:

      Vartik, firstly, I’d suggest you stop dealing with F&O. Stick to investments and do learn about markets. Varsity is a good place to start learning about markets.

  301. Manas says:

    Hey Karthik if you’ve a min, please check this tweet: https://twitter.com/sourabhsiso19/status/1340528383587840002?s=19

    Why isn’t Zerodha doing this?

  302. manas says:

    cool 🙂

  303. Praveen says:

    Hi Karthik,

    I’m 42 years old and done only tax saving investments so far. May I know your suggestion on how much investable amount should I allocate to Equity, Precious metals and in Fixed income?

  304. Nisha Jagirdar says:

    Great content Karthik Sir! Thank you 🙂 Sincere appreciation to you!

  305. Rahul jain says:

    Heloo sir this course is wonderful and very much helpful do we have a quiz section where we can test ourselves and know how we have understood each section

  306. Arsh Gautam says:

    Hey Karthik,

    I am a final year student in Computer Science and Engineering at IIT Delhi with interest in finance and stock markets. I think the material here is very good and should be shared to more and more people.

    I would request for your permission to make youtube videos using varsity resource to increase awareness about stock markets among people. I hope this would not be a problem.


  307. vijay says:

    kind of a silly doubt but has been bugging me for a while, in the second table, how is the principal amount of 240k turning into 20,67,063 at the rate of 12%? I’m new to this field so I apologize if this is a silly doubt.

    • Karthik Rangappa says:

      Each investment is expected to grow at 12%, Vijay. So you need to ensure you add up these investments to get the total figure.

  308. Senthil Kumar says:

    Hi, pls explained about debit share, equity share and debit equity share

  309. Sonali says:

    Hi team,
    I am glad that this article crossed my path, was starting my investment journey, and I was in need of something like this.
    Great Stuff!

  310. adityaraghuwanshi34 says:

    sir if we apply for ipo and get the share then can we sell them on the day of listing

  311. Satyajit Ghoshal says:

    I am 19 years old…and I have very limited knowledge of finance…. But I want to get into stock market..now what should be my approach to get into this?

    • Karthik Rangappa says:

      Satyajit, read and learn as much as you can wrt to markets and keep an open mind. This is the only way to grow in the market.

  312. Sudhakar koyani says:

    Sir, Which modules in varsity you prefer for long term investment?

  313. SACHIN says:

    what is debt
    why ratio changes to 10% gold.
    any explanations

  314. Sandeep Gupta says:

    You said 10% tax on equity if held more than a year. Is it stll applicable if yearly-income is less than 2.5 lakh?

  315. Sandeep Gupta says:

    Thanks for reply. Your tutorial is wonderful ,👍

  316. Vidya says:

    How much it is good to invest when I am 20 years old??? And with what equity???

    • Karthik Rangappa says:

      Any amount is good, the objective is to start investing as early as possible and I think 20 is a great age to start 🙂

  317. Ramesh Paswan says:

    I want to invest 10,000 for 20 years where should I invest equity,bonds,or MF

  318. Ganesh Parit says:

    Very very nice information.
    Good information for beginners to know exact why and where to invest.
    Thank you.

  319. Twinkle says:

    Hi –
    I just want to start trading and many of my relatives n friends suggested Zerodha. Want to thank for such educative understanding😉. Truly Zerodha Rock’s….

  320. Twinkle says:

    Also one suggestion while going through comment sections there are so many important links and tips you are sharing. Like whatsApp one should have option for Starred* Messages. So whenever we want we can go back and check. 🌟

  321. Twinkle says:

    Hi -Thanks for the prompt replies. If not above i. e.starred messages then pls make comments Q&A categorywise below the comment section chapter wise say
    Querries on
    Long Term Capital Gains
    Mutual Funds
    Useful Links
    Appreciation………. Etc
    This will be very helpful to pick topics and go through comments. As many of my querries are being solved in this comment section itself. Request the Team to please give a thought on this as this will be very useful segmentwise. Thanks a ton for all the efforts which you all have done 😊👍 Happy Holi 🌈. Good that I started from first reading and following Zerodha Varsity…

    • Karthik Rangappa says:

      Thanks again for the feedback, Twinkle. I will put this forward to the tech team. I hope you continue to enjoy reading and learning from Varsity, good luck and happy holi to you as well 🙂

  322. Manoj says:

    Hi sir Zerodha varsity is only in english and hindi but why not in kannada ? Your also kannadiga right ? As a kannadiga your not educating karnataka people.. somebody like me want to learn market in kannada because we will understand things very well in our mother tongue..sir this is my humble request please write zerodha varsity modules in kannada thank you.

    • Karthik Rangappa says:

      Manoj, its is really hard to find translators who are good with the market knowledge and good at translating. Now if we do find a good one in Kannada, then what about other languages? This will be very difficult, please think about it.

  323. Manoj says:

    Sir according to my research zerodha varsity is the best educational platform for beginners
    to advanced level traders and investors..in the market no one is teaching like Zerodha varsity..this knowledge should available for everyone.. thousands of translators are there in freelancing.you can do it sir

  324. Gunjan Joshi says:

    You covered four options under the heading – where to invest ?. Why have you not considered mutual funds anywhere in this list of options?

  325. Glen says:

    Hey Karthik,

    Went through the first chapter and every single comment. (the first comment was posted on “November 5, 2014″) & I am so late here (I am 42)”
    Time stamping myself through my comment 🙂 I just wanted to say, thanks for your effort to respond to the comments.


  326. Aniket Kulkarni says:

    hello sir, Varsity is having great content to learn stock market concepts. thank you for providing it for us.
    I seek your permission to make video series on YouTube. also I wish to use Varsity Logo in the thumbnail of those videos.

    Regards, Aniket Kulkarni

  327. sam naresh says:

    hi, I am an 18 yr old, intimidated by the world of stocks and finance. I am at level 0 right now. so, if I read the whole thing can I start investing straight away?

  328. Dilip says:

    Nice information

  329. Nachiket says:

    Hello, I think some of the information in this article needs to be updated!
    1. Rate of return for fixed income securities is taken from 2014! It is 2021 and it has dropped significantly!
    2. In investment options, in Real Estate Section, I think REITs should be added, as now its been 2 years since introduction and 1 year since 1st actual REIT was listed on stock exchange!

    I hope you find this comment and make necessary changes.

    • Karthik Rangappa says:

      The idea is to give the readers conceptual knowledge. The rates keep varying year by year.

      REIT is a slightly complicated topic, will include it in the 2nd part of the personal finance module.

  330. pankaj says:


    I was trying to understand how the last column amount arrived?

    Years Yearly Income Yearly Expense Cash Retained Retained Cash Invested @12%
    1 600,000 360,000 240,000 20,67,063


  331. Rama says:

    Could somebody please explain the math involved in “Retained cash invested @12%”?

  332. Rama says:

    I tried the following to understand the numbers in “Retained cash invested @12%”, but none are matching with what is published in the chapter.. Karthik or anybody, please help me in understanding the math behind this. Thanks in advance!

    1. For year1 –> (Cash retained in year1 X 0.12) + Cash retained in year1. For year2 –> (Cash retained in year2 + total amount accrued in year1) X 0.12 + (Cash retained in year2 + total amount accrued in year1). I repeated the same until 20th year and arrived at 47819263

    2. [This may not be meaningful, but I tried] For year1 –> (cash retained in year1 X 0.12) + cash retained in year1. For year2–> (cash retained in year2 X 0.12) + cash retained in year2. I did the same for 20 years, at the end of 20th year I got 2315110.34

    • Karthik Rangappa says:

      The assumption is that teh retained cash grows at 12% for 20 years (first row). So the formula is –

      = Amount *(1+ interest)^(number of years).

  333. Kaushal says:

    I have a question, what is more preferable to hire someone to help me invest my money ( I am working in a completely different sector “Manufacturing” ) or learn about the financial market and then invest.
    Thanks in advance.

  334. Pavan says:

    How much time should one spend everyday doing equity trading?

  335. swarna says:

    understood the concept , good content.

  336. Hardik Solanki says:

    Hey Karthik,
    I was going through Varsity App and cross checked a few chapters with Varsity Web, they are different. Can you please tell me which one needs to be preferred and how are they different from one another?
    Also, Varsity App doesn’t have comments section and doesn’t have hindi language option too right?

    • Karthik Rangappa says:

      Both are the same, in case you’ve noticed a difference, can you please highlight it? Yes, Varsity app does not have a comments section since it’s tough to add that in the app.

  337. Hardik Solanki says:

    For e.g I was going through the lesson of IPO markets, the lesson here (on Web) talks about a complete story of how a start-up raising a capital through different sources and going to an IPO, couldn’t find the same on the App.
    Others were of references of years (e.g 2014 here and 2018 in App) and stocks in the same lessons.
    So, just got curious about which one to be preferred.

    • Karthik Rangappa says:

      That IPO bit was causing a lot of confusion to readers (check the comments), hence we decided to not include in the app. Ref years should not really matter I suppose as the concepts will continue to remain the same.

  338. Deepak Hatiya says:

    a lots of things to learn still people point out commas only . hahahaha .

  339. Hardik Solanki says:

    Okay, got it. Thank you so much. 🙂

  340. Sourav says:

    @Karthik, please can this treasure trove of knowledge be made available in epub format so that we can read it on our Kindle eReaders.
    Thanks a lot in advance.

  341. Sourav says:

    tiny correction, epub format is not supported on Kindle, the .mobi format is.
    Thanks in advance.

  342. Shubham says:


    In the second table, is ‘Future Value of Annuity formulae’ been put in use for calculating the total earnings?

  343. Arun sharma says:

    hi am 17yrs old now .i use my father’s zerodha kite demat for trading.From last 1.5yrs.I was able to generate 100%-200% return on my capital.All thanks to zerodha varsity and zeodha kite and specially my father who gave me 10 lac rs for trading journey.i have question about zerodha varsity content.can i use zerodha varsity content for my blogs? i will zerodha demat acc.opening link in my blogs?

    • Karthik Rangappa says: </