Amit Nafde CWM

4 Step Model :- Financial Security - Prosperity-Independence & Fin.Freedom,Chartered Financial Goal Planner, Life Goal Innovation , Fin. Planning & Education.

[Kirubakaran Rajendran @kirubaakaran]

A few weeks ago saw an Instagram reel, the creator said, very confidently, that doing a SIP every month won’t build wealth. The smart way, is to invest only when the Nifty PE ratio is below its historical average and stop when it’s above.

It sounds smart. Buy when it’s cheap, stop when it’s expensive.

I wanted to verify this with historical data with the help of claude code.

[Amit Nafde CWM @Interinvest_FP]

@ChiragP2210 Excellent depiction. I'm keeping this image to demonstrate to my Informed Investors (One who seeks and updated of media info during crisis) who often get butchered due to acting on Expert view. The only survivors are Uninformed Investors or Stoic investors.

[Amit Nafde CWM @Interinvest_FP]

EMI kills saving capacity and is opposite of SIP. Keep high tenure.

[B Padmanaban ([email protected]) @padhucfp]

Scenario 1 – Go for Home Loan Maximum Tenure

Are you planning to take a home loan? It's common to go for a shorter tenure to pay less interest and complete the loan sooner. However, our suggestion is to opt for the maximum tenure you are eligible for and invest the difference in mutual funds through SIP.

For instance, if you opt for a 25-year loan instead of a 20-year loan, you can save up to Rs. 3000 per month. By investing this amount in mutual funds, after 20 years, you can pay off the remaining 5 years of your loan and receive around 50 Lakhs. While past returns and the future economy are not guaranteed, we believe this is a highly possible outcome based on the assumption of a 15% return.

So, before taking a home loan, consider the benefits of a longer tenure and investing the difference in mutual funds.

Scenario 2 – Go for Home Loan Minimum Down Payment

Are you planning to buy a house? Make sure you go for the minimum down payment. Many people tend to go for a higher down payment to reduce their home loan EMI. However, this is not the right approach. If your home loan is 1 crore and the minimum down payment is 20 lakhs, then the total EMI works out to be 1.72 crore. By putting another 20 lakhs, the total EMI works out to be 1.3 crore, which helps to save 43 lakhs in the future.

But, instead of giving the money to the home loan provider, if you invest the same 20 lakhs in Mutual Funds for 20 years, it would be around 3.27 crore at the rate of 15% CAGR. By deducting 1.3 crore from 3.27 crore, you are making around 1.97 crore, which is a huge amount. Even if you have 2 crores ready cash, it is always better to go for home loans so that you can make more money than giving it in cash. This is a practical approach. Remember, go for the minimum down payment and invest the rest for a brighter future.

Scenario 3 – Do not Pre-pay Home Loan, stay till the End

Are you considering prepaying your home loan to come out of debt early? Think twice before you do so.

As there is no commonality when it comes to prepaying, it is difficult to explain in detail. However, let's take the example of someone who decides to prepay after 10 years when the home loan tenure is 20 years.

After 10 years, the principal outstanding is 35.32 Lakhs. This means they have paid only 14.68 lakhs towards the principal and the interest component alone is 39.31 Lakhs.

For the next 10 years, the interest outflow on the remaining principal amount of 35.32 Lakhs is only 18.65 Lakhs. Although the comfort level of paying a 45K EMI may be difficult today, it won't be as much of a burden 10 years from now.

So, why prepay after paying so much towards interest in the first 10 years? This decision is often emotional, and unfortunately, many people fall into this trap.

Remember, holding onto your EMI payments until the committed tenure can be a wise financial decision.

Assumption: Mutual Fund Returns over the next 20 Years 15% CAGR.

Conclusion: Most of them do opposite of what I am suggesting in all the 3 scenarios, if not at least one. This strategy is only for those who are not emotional and practical. Others I am sure will post bad comments, it shows their emotionally aligned, its okay.

Disclaimer: Please note that investing in mutual funds carries market risks. It is important to carefully read all scheme-related documents before making any investment decisions. The information contained in the reports is intended for informational purposes only and should be used solely by the recipient. While we have taken great care in compiling the data and contents of this report, we make no representations about the reasonableness of the assumptions or accuracy of any data. Any decisions made based on this information are the sole responsibility of the recipient. We reserve the right to correct any errors or discrepancies in the reports if they are observed or brought to our attention at any time.

[Amit Nafde CWM @Interinvest_FP]

Cost is only a concern in the absence of value.

[Amit Nafde CWM @Interinvest_FP]

Acquire Soft Skills to focus and rebalance life. Else...!! Very true...!

[Stable Investor @StableInvestor]

When you quit a 9to5 job to become independent and then.... realize that running your own business is 24x7 🤦‍♂️

[Amit Nafde CWM @Interinvest_FP]

Loss aversion bias haunts most of the traders and investors.

[Amit Nafde CWM @Interinvest_FP]

If you fear US recession , you should be a US Citizen or in IT Job. I see new investors too much concerned about US Recession.

[Amit Nafde CWM @Interinvest_FP]

My YouTube channel crossed 1k subs! #1kcreator https://t.co/q2ikejwiPx

[Jitendra Jain @jitendrajain]

Another good move by NSE to protect retailers!

[Amit Nafde CWM @Interinvest_FP]

Here are few Investing Wisdom Tips !!

https://t.co/KoD5hSWwWo

[Amit Nafde CWM @Interinvest_FP]

Test https://t.co/hljR3pE0A2

[Amit Nafde CWM @Interinvest_FP]

Learn how equity dividend and SWP can be harmful.

https://t.co/RvuVG3BUgy

[Amit Nafde CWM @Interinvest_FP]

Here is ananalysis of Impact of Corona virus on Indian Economy https://t.co/5wchrSnG5l

[Amit Nafde CWM @Interinvest_FP]

Just joined the 100 subscribers on YouTube club. VIRTUAL HIGH-FIVE! https://t.co/LYo8jS5sjl

[Amit Nafde CWM @Interinvest_FP]

Detailed Review of Sundaram Balance advantage fund. Must See !!

https://t.co/W3yCasMpos

[Amit Nafde CWM @Interinvest_FP]

Here is a detailed analysis of the IDFC Emerging Business Fund NFO. Very detailed and comprehensive. Must listen !

https://t.co/rbbSjnfjWa

[Amit Nafde CWM @Interinvest_FP]

We really need to bridge a lot of Gap with China n other economies.

[Porinju Veliyath @porinju]

57 floors building in 19 days!
At a busy junction in my hometown Kochi, a small flyover (Palarivattom bridge) was planned 30 years ago, got constructed in 3 yrs, opened in 2016, found defective in 7 days, closed after a year - now planning to make it a memorial of corruption!

[Amit Nafde CWM @Interinvest_FP]

This Video explains nicely difference between saving and investing.
https://t.co/IQWxQme1xd

[Anshul Khare @_anshulkhare]

2010s for me:

Lost my Grandpa (Nanaji)
Discovered Buffett & Munger
Read 150+ books
Got Married
1st international family trip
Became father to twin girls
Quit Job (twice)
Wrote 250+ blog posts
Published a book
Survived