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.
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.
@@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.
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 🤝
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.
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.
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.
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.
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 )
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 !
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.
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.
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
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 )
@@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.
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,
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...
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 :)
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)
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).
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. 💪😄)
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?
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.
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
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...
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)
@@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 !
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.
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.
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... 🤔
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.
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
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.
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
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.
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.
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 👍
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.
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.
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😀👍
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.
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 👍
"Price of the fund does not matter at all. Lets say the index rises by 10%, then the fund will rise by 10% as well. So dont worry about the per share price as it is immaterial." Above statement is your advice Sir... I'm keep on learning from you.. Valga Valamudan Nalamudan 🙏🙏🙏 Sir can your please do video regarding buying IPO shares. The benefits of buying IPO shares or the disadvantages. 🙏🙏🙏
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.
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.
I will invest where the NAV is low bcos it gives me a feeling that it can increase manifold on short period compared to the higher stock. May be it is not technically correct, but this is the feeling I take it.
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
Both A and B will give same returns. But we need to calculate the exchange and brokerage charges (will it be based on the number of units or on the total value). Based on that we can decide i guess.
Both fund gives same returns when TER, tracking error are same , only unit allocation differs but the fund value is same.. so both gives same returns..
Great explanation on amortization calculation!!! Reg the Fund A and B, as long as the returns, expense ratio, and other fund characteristics are the same (except the cost), both should have the same return.. only difference would be the number of shares held.. With regards to your comparison between interest savings vs expected rate of return, shouldn't we also consider the house appreciation value over the period of time, and not just the interest savings..
Pls correct me if i'm wrong. I would prefer the fund with NAV 100/- over the one with NAV 10/- if it is a New Fund Offer because the initial cost involved in advertising the fund through various channels is an added overhead. If both are already existing funds then it doesnt matter which one. Both would give similar returns. No. Of units doesnt matter here.
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
@@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.
@@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 😀
@@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 ✌
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.
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.
No worries on the mistake, hope the intern was fired! 😂
@@zaataravi 🤣 Yeah the intern is taken care of 😜
@@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.
@@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".
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 🤝
மிக்க நன்றி!
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.
Good point.
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.
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.
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.
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 )
குரு நாதா எண் மண்டைகுள்ள ஓடிக்கிட்டு இருந்ததை புட்டு புட்டு வைக்குறீங்களே. 👍
Depends on the Fund's expense Ratio, it will vary. If both are having same expense ratio, it will give the same return
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 !
Fund B(Growth). Since i can purchase more units for ₹10 and it can grow higher in future.
A and B both will give same returns,
difference is units allotted ,B is 10 times more than A
I don't know why two dislikes... You explained crystal clear... Amazing and thank you
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.
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.
Good points.
I was thinking of this... You made it clear 👍
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
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 )
@@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.
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,
தெளிவாக சொன்னீர்கள். இப்போது தெளிவு பிறந்தது.
மலேசியா தமிழர்களுக்கு உங்களின் அறிவுரை? மிக்க நன்றி
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...
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 :)
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)
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).
சார், நீங்க அருமையான ஆள்... வாழ்க நீடூழி
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. 💪😄)
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?
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.
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
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...
Avg Indian housing loan interest rate as of now is 6-7 % per annum !
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)
@@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 !
நன்றி திரு.விஜய்மோகன் அவர்களே.
OMG sir your awesome...no one have explained the way you have done ..love your work sir keep going
I little confused on amortization calculation with mine, now got clarity form this video, thanks vijay na 👍
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.
Thalaiva..... Ungaluku tan ivlo naal wait pannitu irunthan
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.
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... 🤔
I can see the vibe of "Is this a tricky question?" 🤣
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.
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
U also touch the emotional aspects which I don’t think many does.. 👍🏽
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.
When in doubt, split the difference. Good idea.👍🏽
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
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.
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.
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
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 👍
Meaningful video..Appreciate your tireless efforts
I maintain small outstanding balance to prevent land grabbing.
Recently started watching your videos. Nice job in explaining the details. Very helpful 🙏
Super anna Iam seeing your channel from 25000 subscribes 8th comment
Great content. Thanks for the details. Answer to your question : same returns from both the funds
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.
Both fund is same. But our mindset goes with Nav RS.10. Because we get more qty..
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 😊
I will invest in Fund A because they already established. Whether A Or B, the return will be same because it following the index.
Excellent way of explaining as usual 👍👍🙏Thank you Sir
That was a cool video..loved the presentation..thank you ..subscribed immediately
Excited to listen to this, As I was just thinking off which one to do.
Fund B, so we can buy many quantity with safety nets
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
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.
You should take the capital gains tax and inflation into account to the formula. Then it would be a complete one ;)
Excellant information sir...Fund A or B ...both are same...will wait for your analysis...
I will invest on the Fund B, because keeping all the same, I am buying more units.
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😀👍
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.
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 👍
Nice video. But you forget to mention the taxation on the capital gain on the investment.
Fund B will attract more people...Expense Ratio may be increase in future...Will go with Fund A .
"Price of the fund does not matter at all. Lets say the index rises by 10%, then the fund will rise by 10% as well. So dont worry about the per share price as it is immaterial."
Above statement is your advice Sir... I'm keep on learning from you.. Valga Valamudan Nalamudan 🙏🙏🙏
Sir can your please do video regarding buying IPO shares. The benefits of buying IPO shares or the disadvantages. 🙏🙏🙏
It will be same. Investment can be done in any fund.
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.
But both the funds are following an Index though.
Fund A or B should be fine as they both mirror the underlying Index with similar tracking error.
Both index funds would give equal returns irrespective of their current NAV.
உங்கள் கேள்விக்கான பதில்:
ஒரு கிலோ பஞ்சிக்கும் ஒரு கிலோ இரும்புக்கும் உள்ள வித்தியாசம் 😀
🤣
சரியான பதில்
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.
A or B either is fine sir ..same will be returns just unit number doesn’t make a diff
No difference in Return from both funds. Invest in any one of them
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?
Sure. It is in my To Do list.
@@InvestmentInsightsTamil Thanks a lot
Sir, very excellent presentation and information.,👌👌👌👌👌
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.
Fund B .. so that we can get many units...
Hi sir..Nice explanation..got info clearly.. thanks 👍
Fund A & B are same return
Sir can you explain about GST in India? Everyone is saying one thing in India. I think you could explain very clear.
I will invest where the NAV is low bcos it gives me a feeling that it can increase manifold on short period compared to the higher stock. May be it is not technically correct, but this is the feeling I take it.
Both Fund A & Fund B will give same return, doesn’t matter.
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
Thankyou so much sir .. please make video on NPS and ELSS comparison
If possible a video on effective tax planning in india would be beneficial for lot of people
nifty B Rs.10 la 500/- rupees invest panniven and another 500/- rupees in Nifty A Rs.100/-
Please talk about current housing market. Is there a bubble? Do you expect housing market crash?
Both A and B will give same returns. But we need to calculate the exchange and brokerage charges (will it be based on the number of units or on the total value). Based on that we can decide i guess.
Like pottuten.
Keep up the good job.
Thanks for this informative video. Can you put a video on taxes involved in the investment on international stocks from India?
Both fund gives same returns when TER, tracking error are same , only unit allocation differs but the fund value is same.. so both gives same returns..
Well Said. whatever my mind voice, you answered well.
Great explanation on amortization calculation!!! Reg the Fund A and B, as long as the returns, expense ratio, and other fund characteristics are the same (except the cost), both should have the same return.. only difference would be the number of shares held.. With regards to your comparison between interest savings vs expected rate of return, shouldn't we also consider the house appreciation value over the period of time, and not just the interest savings..
You already own the home. Appreciation is irrelevant for this calculation of deciding whether to invest the extra money or pay off the loan.
Pls correct me if i'm wrong. I would prefer the fund with NAV 100/- over the one with NAV 10/- if it is a New Fund Offer because the initial cost involved in advertising the fund through various channels is an added overhead. If both are already existing funds then it doesnt matter which one. Both would give similar returns. No. Of units doesnt matter here.
I will choose B
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
I will go with B because you will get more quanty
Answer : Fund A
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.
Your decision is wrong
Some intelligent appear foolish...when index fund how come volatility come into picture...now read again...some foolish appear intelligent 🙄
@@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.
@@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 😀
@@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 ✌