- SEBI launched “Jagrook” campaign with seven free modules for first-time investors
- Modules cover basics from personal finance to protecting against investment fraud
- Program emphasizes understanding investing, starting small, and patience in investing
SEBI wants first-time investors to understand the market before putting their money into it. The markets regulator has launched “Samajh Se Investing Simple”, or “Jagrook”, an investor education campaign that takes beginners through seven free modules covering everything from the basics of investing to choosing financial products.
SEBI's dedicated portal states that the programme offers seven free learning modules, designed to take a person from their first question about money and investing to making a more informed investment decision. The portal specifically tells people who have never invested before to begin with Module 1 and progress sequentially through the seven modules.
The campaign's central message is essentially that investing should be based on understanding rather than tips or speculation. The campaign film on SEBI's portal ancourages investors to start with small amounts, start investing early, rely on facts rather than tips, be patient, understand investment products before choosing them and learn about products such as mutual funds, SIPs, stocks, REITs InvITs and bonds.
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The seven modules listed in the campaign are as follows:
1. Money Before Markets
SEBI's first module deliberately does not begin with stocks or the stock market. Instead it covers basic personal finance issues such as salary/income, spending, emergency funds and loans. SEBI states that the module is designed around the idea that an individual's basic financial position should be in order before they start investing. This module has five chapters with an estimated completion time of 46 minutes.
2. From Money To A Plan
The second module focuses on converting broad financial aspirations such as wanting to become financially secure into specific financial goals with numbers and timelines. The module also addresses the trade-off that SEBI says lies behind every investment decision. This module has three chapters with an estimated completion time of 26 minutes.
3. Understanding And Preparing To Enter The Market
The third module introduces the securities market itself. It explains what the securities market is, what a share is, what a bond is, what a mutual fund unit is, who the different market participants are, who regulates the market, which accounts an investor needs, and the role of KYC (Know Your Customer) requirements. This is therefore the point at which the programme moves from personal financial planning into the mechanics of actually entering the securities market. This module consists of five chapters with an estimated completion time of about 50 minutes.
4. Investing Through Mutual Funds
The fourth module focuses on mutual funds. According to SEBI, it covers how mutual funds work, how investors can select a mutual fund and how they can invest automatically every month. The module concludes with a "halfway checkpoint." This module consists of four chapters and has an estimated completion time of about 33 minutes.
5. Investing Directly: Shares, Bonds And Government Schemes
The fifth module moves into direct investment options. It covers applying for IPOs, buying shares directly, bonds, government securities, and government backed savings/investment schemes. SEBI specifically lists PPF, NSC, SCSS, Sukanya Samriddhi and NPS in this module. This module consists of four chapters with an estimated completion time of about 37 minutes.
6. Staying Invested
The sixth module deals with what happens after an investor has started investing. It covers reading investment statements, managing one's own emotions and behaviour, planning for financial goals, handling tax-related issues and protecting one's family. This module consists of five chapters with an estimated completion time of about 47 minutes.
7. Protecting Yourself
The final module focuses on investor protection and financial fraud. SEBI says that it explains how investment frauds work, how to verify someone before making a payment, and what investors should do if something goes wrong. This module consists of two chapters with an estimated completion time of about 21 minutes.
The seven modules together contain 28 chapters. The total of approximately 260 minutes or 4 hours and 20 minutes, is calculated from SEBI's individual module estimates.
SEBI describes the seven modules as free, available in the learner's language and designed to be completed at the learners own pace. The learning portal also records progress locally in the user's browser. SEBI states that the progress shown on the website is saved only in that browser.
SEBI's portal explicitly states that the website is for investor education only and does not constitute investment advice.
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