Made a mistake in the modified formula displayed in the side bar at 07:48 . Following should be the formula: if (expected return > 2*loan interest) then invest; else pay off the loan; Apologies for the mistake.
@DEV-cw7wf3 жыл бұрын
Answer for your question both nav values are same working method For ex: Neenga oru 100rs ku invest pandringa. Fund A la 20rs per unit ku 5nav so. After increase if you sold. 20.4×5 = 102 Fund B la 50rs per unit ku 2nav if you sold after increase of nav. 51×2= 102 The money is same. But the distribution is different.
@zaataravi3 жыл бұрын
No worries on the mistake, hope the intern was fired! 😂
@InvestmentInsightsTamil3 жыл бұрын
@@zaataravi 🤣 Yeah the intern is taken care of 😜
@ARUNA-sv3se3 жыл бұрын
@@InvestmentInsightsTamil In true sense, dont fire the intern we have all done mistakes, and learn from that. If you haven't made a mistake you haven't tried anything new. So spare the intern, it's fine.
@InvestmentInsightsTamil3 жыл бұрын
@@ARUNA-sv3se that was just a joke. There is no intern. It's just me and my son in my team. "No interns were harmed from making this video".
@avinashisatham99423 жыл бұрын
பொருளாதாரத்தில் பின்தங்கிய எங்களைப் போன்ற பல கிராமங்களில் வாழும் இளைஞர்களுக்கு உங்களுடைய வீடியோ மற்றும் பல நல்லவர்களின் வீடியோ மிக பயனுள்ளதாக இருக்கிறது நிச்சயம் அடுத்த தலைமுறை பொருளாதாரத்தில் வளர்ந்த தலைமுறையாக இருக்கும் என்று நாங்கள் நம்புகிறோம் உங்கள் பணி சிறக்க வாழ்த்துக்கள் அண்ணா 🤝
@InvestmentInsightsTamil3 жыл бұрын
மிக்க நன்றி!
@Madara_5063 жыл бұрын
குரு நாதா எண் மண்டைகுள்ள ஓடிக்கிட்டு இருந்ததை புட்டு புட்டு வைக்குறீங்களே. 👍
@srikanthramanan3 жыл бұрын
Vanakkam Vijay Sir, Well explained and thanks. One other aspect to consider is the capital gains tax associated with any investment. Loans (principle + interest) is not subject to tax but our investment returns are subject to taxes. We must have proper tax planning and that also needs to be included in our calculations while choosing to pay off loan vs invest.
@InvestmentInsightsTamil3 жыл бұрын
Good point.
@uvarajkrishna3 жыл бұрын
Very valid one. Plus the professional charge to file a tax return with capital gains if one doesn't know to do on their own like me. I burnt my fingers lately.
@ssakthik3 жыл бұрын
Principal and interest on home loan are exempted from taxation... long term capital gain are exempted upto to some level too. If you trade and buy a car from the profit, that can completely be exempted from your business income.
@karthickr52343 жыл бұрын
NAV doesnot matters if we have same allocation, expense ratio, tracking error. Both the funds will raise in same percentage level day by day. Only difference is Number of units.
@naveenneelakandan98183 жыл бұрын
Thank you very much .. This topic is running in my mind for quite sometime. At times emotional quotient plays a vital role than logical. ( You got the pulse of majority )
@vijdeepa3 жыл бұрын
Depends on the Fund's expense Ratio, it will vary. If both are having same expense ratio, it will give the same return
@aswinshankar55423 жыл бұрын
Fund B(Growth). Since i can purchase more units for ₹10 and it can grow higher in future.
@chandrakumar56453 жыл бұрын
A and B both will give same returns, difference is units allotted ,B is 10 times more than A
@mahendrangurusamy14023 жыл бұрын
I am happy that I made a little research from my end before investing. I can answer your question proudly. We don't need to break our heads about NAV and allocation units, if expense ratio, tracking error and other factors are similar/equal.🙂 Thanks for your valuable videos @Vijay sir.
@vigneshmani26363 жыл бұрын
I don't know why two dislikes... You explained crystal clear... Amazing and thank you
@prashantharunachalam50453 жыл бұрын
Sir, what you have explained is reducing balance interest calculations,but in India most banks have fixed simple interest trap, which is dangerous and must be avoided !
@Maddy130986 Жыл бұрын
தெளிவாக சொன்னீர்கள். இப்போது தெளிவு பிறந்தது.
@mvinayagam7323 жыл бұрын
You are great, many people have financial knowledge, but ability to teach other in layman language is only few people have, you are one among the person, I am forever grateful to you sir, thanks a lot,
@ARUNA-sv3se3 жыл бұрын
Very good video, please correct some of the facts in India Housing loan interest rate is 6.5 to 7% right now, and with income-tax benefit it's just 4.9% for 30% tax slab and 5.6% for 20% tax slab. In addition to this in Section 80 C you can avail benefit on Income-tax. So for a housing loan effective interest of 5-5.6% it's better to invest and just pay the EMI if you are not emotionally attached to loan as a headache in your mind. Even if repo rate increases housing loan interest rate doesn't cross 8% One last point any long term investment will attract 10% tax on returns.
@InvestmentInsightsTamil3 жыл бұрын
Good points.
@ariyanathanbe3 жыл бұрын
I was thinking of this... You made it clear 👍
@k.sundararajan68863 жыл бұрын
my doubt also same.iam in 30% tax bracket ,then effect of housing loan interest 5-6%only. same as fd rate fixed income,TDS!!.almost same.For mind satisfaction i preferred repay loan. very good topic sir.தமிழ் மக்களுக்கு பொருளாதாரம் குறித்து பலர் பேசினாலும் தங்கள் போதனைகள் வித்தியாசமான கோணத்தில் உண்மையை அப்படியே போட்டு உடைக்கிறீங்க தலைவா! வாழ்த்துகள்
@naveenneelakandan98183 жыл бұрын
Also most of us would have filled the 80C at the early stage of the career. Once we grow and reach the 30% slab our PF and existing insurance stuff woul take care fo 80C which is used for the principal amount paid in the FY. Also interest portion is capped at 2 Lakhs and so effective int rate of 4.9 may not be accurate ( Also to be taken into consideration )
@ARUNA-sv3se3 жыл бұрын
@@naveenneelakandan9818 Rightly pointed out, 80C Has a cap of 1.5 lakhs hence not included in the interst rate discounting, it depends on if applicable. Also 2 lakhs cap and additional interest subsidy of 1.5 lakhs applicable for first time home buyers to be noted and it's valid till apartment value is 45 lakhs which is decent enough for a first time home buyer only.
@cybrainx722 жыл бұрын
Also another thing to consider is tax saving due to interest payments. If there is a tax saving that also needs to be considered. if the interest owed is o, after savings it would only be 0.7 o and then you can applying your doubling formula.
@rajr44453 жыл бұрын
MY OPINION Nifty fund with NAV Rs 100 is Better than fund with NAV 10 Reason : By buying Rs 100 fund, we are buying lower number of units with same actual value. So when doing large investment, At the time of buying, the per NAV unit price will be increasing more in Rs 10 fund, and similarly at the time of selling, the per NAV unit price will be decreasing more in Rs 10 fund. There is clear loss in both buying & selling scenario for Rs 10 fund and this is due to the basic demand-supply component of share market. So choose Rs 100 is better in my OPINION Vijay Sir, give your views on this :)
@jai123480 Жыл бұрын
What ever the units you buy same interest is the result so number of units dosent matter Assume both funds with different nav is growing at same rate, what will be the difference? . . . Answer: no difference Explain: Invest 1000 A: Fund NAV is 10 B: Fund NAV is 100 So A obtain 100 unit and B obtain 10 unit If roi is 10% for both 100 rupee 10% is 10 (invest return) 10 rupee 10% is 1 (invest return) But for A we have 100 unit (1*100) and for B we have 10 unit (10*10) (Invest return * number of unit)
@angelinechandran3 жыл бұрын
To answer the question, The difference would only be in the number of units purchased. 10 units or 100 units growing at 10% would give same return as long as the purchasing amount is the same. Unless I am missing something... 🤔
@InvestmentInsightsTamil3 жыл бұрын
I can see the vibe of "Is this a tricky question?" 🤣
@b2Samaritan3 жыл бұрын
For the last question - ill invest in fund with NAV 100. That will save relatively an amount from expense ratio and all other factors would be almost the same
@aswinsenthilnathan31803 жыл бұрын
Thalaiva..... Ungaluku tan ivlo naal wait pannitu irunthan
@thomsonboominathan18493 жыл бұрын
உங்கள் கேள்விக்கான பதில்: ஒரு கிலோ பஞ்சிக்கும் ஒரு கிலோ இரும்புக்கும் உள்ள வித்தியாசம் 😀
@InvestmentInsightsTamil3 жыл бұрын
🤣
@sridharvenkatavarathan59733 жыл бұрын
சரியான பதில்
@jsanthi91023 жыл бұрын
As per my understanding Fund A(100) will give more returns when compared to fund B(10). Like wise if u closing the fund when market is down will Fund A will give more loss than fund B.
@thambi19813 жыл бұрын
I don't look at the NAV value and we deal everything in percentage. So I look at only return % , expense ratio %, sector allocation % and NAV is not a big deal. For your question, both should return same value
@user-SKS113 жыл бұрын
நன்றி திரு.விஜய்மோகன் அவர்களே.
@thangamarun3 жыл бұрын
மலேசியா தமிழர்களுக்கு உங்களின் அறிவுரை? மிக்க நன்றி
@maatarasi3 жыл бұрын
I watched all your videos sir, my knowledge of finance management is zero before watching your videos. U have done a great job. Please post more videos sir, Thank u so much...
@prashantharunachalam50453 жыл бұрын
Avg Indian housing loan interest rate as of now is 6-7 % per annum !
@senthil_skm3 жыл бұрын
I have took a housing loan with 9.75% with 3 years fixed, Is transfer of loan to another bank will help me to trip down the interest rate or it is mere waste of time. Please recommend. Note: the housing loan is taken in 1.9 years before (2019)
@prashantharunachalam50453 жыл бұрын
@@senthil_skm Yes, you can transfer it to another bank, but the cost of changing banks should be less than the interest savings i.e there will be processing charge in your new bank and you will have to re-hypothecate your house again in register office. If the loan amount is small it is better not to change as the cost of changing will be higher than interest savings. If the loan is a bigger amount,then compare the costs and savings ! It is also better to opt for housing loans with floating interest rates as future reduction in interest rate will automatically be implemented in your loan. Hope this helps !
@VARSHJAIVLOGS2 жыл бұрын
OMG sir your awesome...no one have explained the way you have done ..love your work sir keep going
@raghunitin3 жыл бұрын
My answer might be straight up absurd, I would prefer fund A because of how ‘even a decimal percentage increase’ will reflect on each unit of the fund. For instance, 0.09% increase in each unit of fund A would be 100.09 and I would hold what’s worth 1000.9. But 0.09% increase in each unit of fund B would be 10.009, rounded off to 10 and I would miss this gain. Either this or I am overthinking and over-complicating things… (Huge fan and a long time follower here, thanks a lot for mentoring us. 💪😄)
@krishnakumarchinnusamy3 жыл бұрын
Thanks Vijay 👍🏼 Answer to question: I think it doesn't matter if nav is 10 or 100 returns always depends on the performance of index. suppose if nav 10 fund increases to 11(+1 gain) at the same time nav 100 goes to 110(+10).
@karthikeyentrs51343 жыл бұрын
No of nav alloted matters... because if Nav price increases...Amount gets appreciated...If Nav 10...10.2*100=1020...20 Rs profit...if Nav 100...102*10=1020...both are same and no of nav holding is different...If TER is Different the options will be deviated
@chitrarasusengoden52703 жыл бұрын
Vanakkam Vijay, Nandri for comparing always India and US which is what we always try to compare, on your qn i don't think any difference but i will chose RS10 instead of RS100.
@kathirr24383 жыл бұрын
Great topic but not discussed in detail. At the end of the day, its about investment choice. I wish you touched upon following pints 1. Tax implications in both scenarios 2. If someone choose to put money in real estate, should the person put all the money in one home or spread across multiple real estate assets? 3. Real estate market analysis. It's slow in India and highly appreciated in US. Shouldn't we buy low and sell high instead of focusing small interest rates? 4. If people are choosing real estate as safe heaven, how about buying gold/silver?
@madhushalini79283 жыл бұрын
Interesting question!!! Both the funds will mirror the market. There should be no difference in returns bcos of NAV, when expense ratio n exit loads are same... I dont think AUM plays a role in Index funds...
@arunkumar-oj7bz3 жыл бұрын
Meaningful video..Appreciate your tireless efforts
@ArunKumar-me3cp3 жыл бұрын
சார், நீங்க அருமையான ஆள்... வாழ்க நீடூழி
@manojantony323 жыл бұрын
I little confused on amortization calculation with mine, now got clarity form this video, thanks vijay na 👍
@elamparethyharidoss77723 жыл бұрын
Both funds can give same return since their expense ratio will be same… I am in confusion whether to pay off loan or invest… thanks for the guidance… my decision and thinking matches yours… thank you.
@kbrnhome9683 жыл бұрын
Excellent Video. This was always a question running in everyone head... by the time one reaches 55 they don't want to hang around with home loan. Feel like at least I have a house fully paid off after working for 30 years.
@dellikumarmadhavan12093 жыл бұрын
Both Fund A and Fund B will give the same returns. So NAV doesn't matter here. We must be careful while selecting good AMC's because here side pockets and bad loans are a big concern for us.
@manikandannatarajan68333 жыл бұрын
I will invest in Fund A because they already established. Whether A Or B, the return will be same because it following the index.
@VijayS-ri9uw2 жыл бұрын
Thanks You Sir. I think when we are holding more nav, a small increase in NAV will bring huge profit. we are prepared to buy less price nav daily basis rather than bigger nav. It is all depends on our mindset.
@thangarajs55543 жыл бұрын
Both fund will return same profit. So it doesn’t matter which one to choose. But I will go for fund b for self satisfaction 😊
@sathyaabn24063 жыл бұрын
Recently started watching your videos. Nice job in explaining the details. Very helpful 🙏
@JM-xr3cq Жыл бұрын
U also touch the emotional aspects which I don’t think many does.. 👍🏽
@rithinkrishna28173 жыл бұрын
Super anna Iam seeing your channel from 25000 subscribes 8th comment
@randyinvites3 жыл бұрын
Vijay sir you gave right direction to me.. o am thinking on this very long time.. all suggest to invest and continue the loan.. but u gave good clarity on how to decide 🙏 thank you very much 👍
@lingeswarank.s4454 Жыл бұрын
I maintain small outstanding balance to prevent land grabbing.
@baba311833 жыл бұрын
That was a cool video..loved the presentation..thank you ..subscribed immediately
@kishoreprabhu8353 жыл бұрын
Hi brother, another great video, btw I always split my money in two (50:50) and I use one portion to repay my home loan principal and other portion to invest in MF.
@InvestmentInsightsTamil3 жыл бұрын
When in doubt, split the difference. Good idea.👍🏽
@srihariraman36903 жыл бұрын
Excellent way of explaining as usual 👍👍🙏Thank you Sir
@ganeshkumarsundar27643 жыл бұрын
Both fund is same. But our mindset goes with Nav RS.10. Because we get more qty..
@srinivasans44353 жыл бұрын
Great content. Thanks for the details. Answer to your question : same returns from both the funds
@whalebl3 жыл бұрын
I will invest on the Fund B, because keeping all the same, I am buying more units.
@neshinvestor29403 жыл бұрын
I will invest in Fund B. Mathematically both should give similar returns but when a unit price is lower, when the asst's value increases ppl tend to invest more of fund b than a. Its like a stock split so ita available for purchasing at lower price for small investors.
@InvestmentInsightsTamil3 жыл бұрын
But both the funds are following an Index though.
@vigneshhariharan82313 жыл бұрын
Excited to listen to this, As I was just thinking off which one to do.
@vijaynarayen82543 жыл бұрын
According to me investing in fund b is better even though the return will be the same in both funds. If I suddenly need 120 rs for example, I will have to sell 12 units of fund b, but I would have to invest 2 units of fund a and remaining 80rs will be stuck in my hand with no returns.
@bala7crazy3 жыл бұрын
In your example, you have just considered one year as tenure period and so interest comes less as compared to principal amount. but this is not the case with loan for more tenure period, where the interest amount is higher than the principle amount during initial loan period.
@vijayanandvenkatesan10963 жыл бұрын
Fund B, so we can buy many quantity with safety nets
@crsratnam843 жыл бұрын
It will be same. Investment can be done in any fund.
@sriramsurya72603 жыл бұрын
Excellant information sir...Fund A or B ...both are same...will wait for your analysis...
@Ajithkumar-tx5to3 жыл бұрын
Hi sir..Nice explanation..got info clearly.. thanks 👍
@HariKrishnan-dd1qg3 жыл бұрын
Dear Vijay sir, Thanks for your nice contents. I Wish to buy Fund-B as it gives more units - more satisfaction, although the returns are same
@chamkarupps96633 жыл бұрын
Vijay sir, Kudos for Excellence in investment trick's.,. Answer for Ur question is both will give the same returns as 1100 with 10% appreciation, So we can anyone., I hope 🤞 it's correct analysis 👍
@razzak0703 жыл бұрын
நீங்க கணக்கில் ஒரு புலி எனக்கு கணக்குன்னா கிழி…. கமென்ட்டில பார்தா புலிக்கு பார்முலாவுல கிழி…🙈
@adamumesh3 жыл бұрын
Sir, doesn't make difference but still I would select B because I can invest even as small as a cost of a vadai in local tea shop 10rs in nifty 50
@senthilkumarsenthilkumar Жыл бұрын
Great.
@senthilkumarr19453 жыл бұрын
Can NPS be a part of Fire in India? If yes how much % we can allocate? Are you interested to post a detailed video about NPS?
@InvestmentInsightsTamil3 жыл бұрын
Sure. It is in my To Do list.
@senthilkumarr19453 жыл бұрын
@@InvestmentInsightsTamil Thanks a lot
@perumalnithya73783 жыл бұрын
Sir, very excellent presentation and information.,👌👌👌👌👌
@vasivasanth15113 жыл бұрын
Fund A & B are same return
@sivakumarkandasamy88283 жыл бұрын
Both Fund A & Fund B will give same return, doesn’t matter.
@perichiappan99553 жыл бұрын
For your question, I would choose Option B.
@kkk87553 жыл бұрын
He was also indirectly asking it WHY?
@venkadeshmuthu69143 жыл бұрын
I will choose B
@SathyaPhysics3 жыл бұрын
Answer : Fund A
@venkatakrishnanjayaraman54103 жыл бұрын
Fund A or B should be fine as they both mirror the underlying Index with similar tracking error.
@mageshsai Жыл бұрын
Both index funds would give equal returns irrespective of their current NAV.
@dhanasekarvisalan89553 жыл бұрын
I'll invest in FUND A, fund B nav 10 is initial value we can't see the fund performance. My thought to invest in better AUM and good return.
@chandrasekarb11243 жыл бұрын
No difference in both the funds It will provide same return .. only the credibility of the fund will help to decide either one of them. How long the fund is active can also help make the decision.. just a thought process, Correct me for any mistakes
@vasanthakumars28413 жыл бұрын
No difference in Return from both funds. Invest in any one of them
@danielstanley16373 жыл бұрын
You should take the capital gains tax and inflation into account to the formula. Then it would be a complete one ;)
@prabagaran.s12853 жыл бұрын
If the both the fund have same characteristics like direct and growth , whatever may be regularetc.., Nav doesn't impact your profits. If we assume , let's invest the 1000 on both the fund , so we will hold 10 units in fund A and 100 units in fund B If we have CAGR of 20% on both the fund. Then new nav will be for fund a it's 120 and fund b it's 12. Let's redeem now. Fund A - 10*120 = 1200 Fund B - 100 * 12 = 1200 Hope it's correct😀👍
@ParthaSarathiDharini3 жыл бұрын
A or B either is fine sir ..same will be returns just unit number doesn’t make a diff
@Ram-ls7ji2 жыл бұрын
Thanking you sir 🤝.
@justbe37083 жыл бұрын
Well Said. whatever my mind voice, you answered well.
@itzdevaraj3 жыл бұрын
Answer: Only difference is No of units . Returns will be same
@thulasigeethanjali74673 жыл бұрын
Fund B .. so that we can get many units...
@smileykitten48962 жыл бұрын
Option B
@naveenkumar-nn7zb3 жыл бұрын
FundA will have 10units and FundB 100units but the amount of investment is same and the returns will be same as well if the return rate is Same for both
@vishwanathan19823 жыл бұрын
Welcome back !
@premindia12 жыл бұрын
Sir u r genius ..
@svigneshanand3 жыл бұрын
I think I will do it on the fund having NAV 100 as the NAV depends on the AUM.. so volatility will be less compared to the fund having NAV 10.
@DEV-cw7wf3 жыл бұрын
Your decision is wrong
@arumugampillais66543 жыл бұрын
Some intelligent appear foolish...when index fund how come volatility come into picture...now read again...some foolish appear intelligent 🙄
@svigneshanand3 жыл бұрын
@@DEV-cw7wf the fund with value 10 should be a new fund kind of NFO, on the other hand the fund with NAV 100 is little older and gained 90 from its base 10. That means it's AUM is better so in case of any huge redemption happens the fund can handel better and not have volatility in the NAV value.
@svigneshanand3 жыл бұрын
@@arumugampillais6654 Then all the Index funds in the market should have exact same returns. Why there is difference? Who understands that will be intelegent 😀 and who doesn't will be foolish 😀
@arumugampillais66543 жыл бұрын
@@svigneshanand again some attempting to cover up the lack of knowledge of info..he made a clear point and asked what u pick when two idea funds of same size , same return, same tracking error..anyways u continue to prove ur skill..I will stop here. Peace ✌
@TheKumarAK3 жыл бұрын
Both are give same return. Only number unit different.
@haz185913 жыл бұрын
Nice video. But you forget to mention the taxation on the capital gain on the investment.
@eashwarraaj79962 жыл бұрын
Thank you sir for such usefull video
@sivasivakarthik3 жыл бұрын
I will invest in B. Both are nifty. B will give me more units.
@samrajnatarajan32593 жыл бұрын
Sir it is confusing it we can use brokers to invest or demat accounts like HDFC. Will the commission affect our returns. many has put vidoes in Hindi but if you release one it will be good as you are trust worthy and give the right advice to all.
@painreliever17283 жыл бұрын
Like pottuten. Keep up the good job.
@tube4kram3 жыл бұрын
Most of the Home Loans, Interest component will be more compared to principle component, first half of the loan tenure you will pay the most of the interest of the whole tenure interests, then only your Principle component will increases, at that time paying back loan is not wise option as you had already paid the interest.
@InvestmentInsightsTamil3 жыл бұрын
That is not the right way to look at it. At any point of time, the interest we pay is dependent on outstanding balance. If the balance goes down, we pay less interest. So if the interest is high, it is better to pay towards the balance, regardless of whether we are in the first half or second half of the loan period.
@wondersofnature60043 жыл бұрын
10rs nav Is better when total captial of money to invest low is best for mutual fund as per RBI norms such that each mutual fund company may not increase their share of company above 10%