Discover and read the best of Twitter Threads about #Compounding
Most recents (15)
The actual cost of delaying an #investmentdecision is often unknown until one notices a shortfall in their corpus.
This often prevents one from achieving your goals on time.
Let's explore the cost of delay with an example. (1/n)
#financialplanning #financialgoals
This often prevents one from achieving your goals on time.
Let's explore the cost of delay with an example. (1/n)
#financialplanning #financialgoals
Let's say you are 15 years away from retirement.
After retirement, you require ₹60,000 per month in expenses (in today's value) to live comfortably. (2/n)
#retirement #financialplanning #savings #investing
After retirement, you require ₹60,000 per month in expenses (in today's value) to live comfortably. (2/n)
#retirement #financialplanning #savings #investing
The final total goal amount that you require to sustain yourselves through retirement is ₹3 Crores. (3/n)
#retirementcorpus
#retirementcorpus
Another NFO - at an opportune time:
New Fund Offer (NFO) of Motilal Oswal Nifty G-sec May 2029 Index Fund. The NFO opens and closes on 02nd March 2023
Why should you invest in Motilal Oswal Nifty G-sec May 2029 Index fund?
New Fund Offer (NFO) of Motilal Oswal Nifty G-sec May 2029 Index Fund. The NFO opens and closes on 02nd March 2023
Why should you invest in Motilal Oswal Nifty G-sec May 2029 Index fund?
It is a 6 year open ended #DebtScheme - comparable time frame to most popular investment alternative viz. 5 year #BankFD
With likely capture of Gross YTM of 7.40% - again comparable to current rates of 5 year FDs or even better
With likely capture of Gross YTM of 7.40% - again comparable to current rates of 5 year FDs or even better
However, MO 2029 G Sec NFO scores over FDs on many counts:
1. More #TaxEfficient with 7 indexation benefits
2. Similar returns but scope for capital gains if redeemed before maturity (when interest rates soften)
3. Better #Liquidity as it is open ended debt scheme
1. More #TaxEfficient with 7 indexation benefits
2. Similar returns but scope for capital gains if redeemed before maturity (when interest rates soften)
3. Better #Liquidity as it is open ended debt scheme
A simple hack helps you save tax on #stocks and #mutualfunds.
Here’s what you do:
- Sell your investments
- Book profits & losses
- Repurchase immediately
This is called Tax Harvesting
A 🧵on how it’s done.
Here’s what you do:
- Sell your investments
- Book profits & losses
- Repurchase immediately
This is called Tax Harvesting
A 🧵on how it’s done.
Let’s first talk about the #tax on #equities.
The profit you book is divided into two buckets.
1. Shot term: If you sell within one year (of purchase)
2. Long-term: If you sell after one year
You pay a higher tax for short-term profits and lower for long-term (Check table)
The profit you book is divided into two buckets.
1. Shot term: If you sell within one year (of purchase)
2. Long-term: If you sell after one year
You pay a higher tax for short-term profits and lower for long-term (Check table)
Now, let’s jump to the sweet part - how to reduce taxes?
You pay LTCG tax only when your gains exceed Rs 1 lakh.
So the trick is not to let your gains go beyond this tax-free limit.
How to do it? Sell a part of your gains to book LTCG and reinvest it.
An example will help.👇
You pay LTCG tax only when your gains exceed Rs 1 lakh.
So the trick is not to let your gains go beyond this tax-free limit.
How to do it? Sell a part of your gains to book LTCG and reinvest it.
An example will help.👇
Wondering if you should start a SIP?
Here is a thread that can help! (1/n)
#mutualfunds #investing #SIP #thread
Here is a thread that can help! (1/n)
#mutualfunds #investing #SIP #thread
The market has been very volatile for the last couple of months.
With 2023 lined up to be another uncertain year, how should investors take advantage of such a year? (2/n)
#investors #volatility #wealthcreation
With 2023 lined up to be another uncertain year, how should investors take advantage of such a year? (2/n)
#investors #volatility #wealthcreation
The answer is simple. Rather than waiting on the sidelines, the best way to participate in the market is via a SIP! (3/n)
#SIP #investingtips #compounding
#SIP #investingtips #compounding
If you have a SIP of Rs. 10,000 for a period of 35 years, that amount growing at 12% p.a will grow to Rs. 5,17,99,620.
₹5 cr plus.
Now just increase the SIP amount by 10% a year. This grows to Rs. 14,81,83,096. Which is almost 3 times the amount, ₹14cr plus.
₹5 cr plus.
Now just increase the SIP amount by 10% a year. This grows to Rs. 14,81,83,096. Which is almost 3 times the amount, ₹14cr plus.
This is the power of #compounding. Build the habit of regular early equity investing, first pay the SIP then spend. You do not need to know fancy technical or fundamental analysis, no need to time markets and get anxious. By the time you retire, your corpus will be ready.
Any decent mutual funds will give atleast 12% or more returns. I will recommend one each from multicap, midcap and smallcap.
#personalfinance
#personalfinance
Want to be a full-time trader?
It seems coolest thing, no office, no boss, u can work from anywhere, isn't it?
But wait..
Here is a stringent checklist for u-
If u satisfy all the criteria then only think of #trading as a full time career.
#MegaThread
+++
It seems coolest thing, no office, no boss, u can work from anywhere, isn't it?
But wait..
Here is a stringent checklist for u-
If u satisfy all the criteria then only think of #trading as a full time career.
#MegaThread
+++
1. #MentalFitness -
Yes, I kept it at top because it's all about controlling your emotions.
Then comes the trading system which you will gradually build for yourself.
Trading is about finding what works for you and sticking to it no matter what.
++
Yes, I kept it at top because it's all about controlling your emotions.
Then comes the trading system which you will gradually build for yourself.
Trading is about finding what works for you and sticking to it no matter what.
++
2. #CashFlows -
It must be made sure that the income from trading per year on an average is more than what your current income is, plus it should cover cost of running business (office/net connection/paid subscriptions etc)
It must be made sure that the income from trading per year on an average is more than what your current income is, plus it should cover cost of running business (office/net connection/paid subscriptions etc)
Weekly Progress Update!
Here we go again for another round of weekly summaries for @tombfinance; @HectorDAO_HEC; @nemesis_dao; @osmosiszone; @ThorNodes; @VaporNodes; & @AngelNodes.
Trudging along with building an empire, glad to have you witness the journey!
🧵👇
Here we go again for another round of weekly summaries for @tombfinance; @HectorDAO_HEC; @nemesis_dao; @osmosiszone; @ThorNodes; @VaporNodes; & @AngelNodes.
Trudging along with building an empire, glad to have you witness the journey!
🧵👇
2/ First as always is @tombfinance, investing in $TShare / $FTM LP. This month I transferred back to #TombSwap so I can take advantage of the inevitable $Tomb printing run, once $FTM goes on price recovery. Will then dump earned $Tomb into the $Tomb / $MAI LP. Daily $$ is $4.15
3/ Next is @HectorDAO_HEC, which is slow and steady. Price floored in March and has seen a steady upper and lower threshold. Will be waiting for a long time for this to do something, but I'm not going anywhere. Currently, daily $$ is $.69
Wanted to do a quick thread on @AngelNodes and discuss some strategy on how to approach this unique #Node on the #BSC. Check out details below.
🧵👇
🧵👇
2/ First, a little about. @AngelNodes is a part of the @nemesis_dao ecosystem. They launched in early Feb. and the price currently sits at around $5 / $Angel. Relatively stable price in the past two weeks. What is unique about these #Nodes is that you can upgrade your nodes.
It's Wednesday, so we have a new weekly summary for all of the daily investment posts. This thread includes data from:
@tombfinance / @Reaper_Farm
@HectorDAO_HEC / @nemesis_dao
@osmosiszone / @ThorNodes
@VaporNodes / @AngelNodes
Check it out!
🧵👇
@tombfinance / @Reaper_Farm
@HectorDAO_HEC / @nemesis_dao
@osmosiszone / @ThorNodes
@VaporNodes / @AngelNodes
Check it out!
🧵👇
2/ First let's take a look at @tombfinance, staking $TShare / $FTM LP in #autofarm @Reaper_Farm. @FantomFDN #drama caused some lower price action this month, but Tomb shows some consistent returns. Don't care about price, I care about #Compounding
3/ Next, let's look at @HectorDAO_HEC. APR is slow and steady and this project is pretty boring with very low returns. Price action continues to decline, but looks like a bottom is near. The pivot to a bank and $TOR saved the #rebase project, but we'll see what happens with $HEC
Elearnmarkets presents Learn2Invest✨
An Exclusive Series by @vivbajaj where everyone can learn the art of investing!
Summary of Episode 4: Impact of Income Tax on your Investments💵
A thread(🧵)...
An Exclusive Series by @vivbajaj where everyone can learn the art of investing!
Summary of Episode 4: Impact of Income Tax on your Investments💵
A thread(🧵)...
In one sense, when you're #investing, you're giving back to #Society, because you're giving them money.
The fact that you're giving to someone else means that Economic activity grows👇
The fact that you're giving to someone else means that Economic activity grows👇
Even in a #Bank, when you're #investing in a Savings Account, the bank will give you a little interest.
It will give that money in the form of a loan to some company or even give you back the same in the form of some EMI. 👇
It will give that money in the form of a loan to some company or even give you back the same in the form of some EMI. 👇
#Compounding - A Real life story
Most people haven’t heard of Sylvia Bloom.
She managed to amass a $9.2m fortune whilst spending her entire 67 year-long career as a legal secretary. @dmuthuk #Investing #Thread 1/8
Most people haven’t heard of Sylvia Bloom.
She managed to amass a $9.2m fortune whilst spending her entire 67 year-long career as a legal secretary. @dmuthuk #Investing #Thread 1/8
Even her closest friends and relatives had no idea she had amassed such a sum, until, upon her death in 2016, her will provided for $8.2m in donations to various charities for needy children. 2/8
But how did she accumulate such a massive pot for someone who never earned more than a secretary’s salary? By all accounts, she was a frugal person, living in a rent-controlled apartment in New York and avoiding all trappings that come with wealth. 3/8
Compilation of Threads on Personal Finance
Hope this thread helps you. Please 're-tweet' so that it reaches maximum investors and helps them in their Financial journey.
Thank you.
#personalfinance #FinancialFreedom #finance #money #investing #wealthcreation #passiveincome
Hope this thread helps you. Please 're-tweet' so that it reaches maximum investors and helps them in their Financial journey.
Thank you.
#personalfinance #FinancialFreedom #finance #money #investing #wealthcreation #passiveincome
Power of Compounding #compounding
Book Review #BookRecommendation
1/8
Often hear salaried people complaining about volatility being the reason they stay away from markets .
IMHO I feel #volatility is not risk . It's actually an opportunity to be capitalised upon sensibly .
( T&C being applicable as always*)
A few pointers on the same.
Often hear salaried people complaining about volatility being the reason they stay away from markets .
IMHO I feel #volatility is not risk . It's actually an opportunity to be capitalised upon sensibly .
( T&C being applicable as always*)
A few pointers on the same.
2/8
* Being salaried helps immensely as one gets a fixed sum of money monthly . Less uncertainty of cash inflows aids in better decision making as we don't resort in knee jerk reactions .
* With proper planning one can keep aside money to invest systematically in markets.
* Being salaried helps immensely as one gets a fixed sum of money monthly . Less uncertainty of cash inflows aids in better decision making as we don't resort in knee jerk reactions .
* With proper planning one can keep aside money to invest systematically in markets.
3/8
* In the event of a sudden melt down we won't be forced to sell our holdings for want of money for next month's expenses.
* Thereby , we ensure we do not interrupt the process of #compounding . Otherwise, one is forced to sell even good stocks for want of money . 🤷
* In the event of a sudden melt down we won't be forced to sell our holdings for want of money for next month's expenses.
* Thereby , we ensure we do not interrupt the process of #compounding . Otherwise, one is forced to sell even good stocks for want of money . 🤷
A common Fallacy related to #CompoundingEffect
You will hear even the best proponents long term investing and compounding say that, "the problem with compounding is that most of the gains are back ended.”
(1/13)
You will hear even the best proponents long term investing and compounding say that, "the problem with compounding is that most of the gains are back ended.”
(1/13)
Often the example of Warren Buffet is quoted saying that most of wealth got generated after he crossed 70 years (even though he started at the tender age of 11!).
This statement is specious.
It gives you an impression that it is a slow way of gaining & it needs patience...
This statement is specious.
It gives you an impression that it is a slow way of gaining & it needs patience...
...and possibly there is a faster way of gaining other than compounding. Let me clarify here...with the exception of sub-atomic world, a lottery, or adoption by a wealthy person or any such plain luck, there is no quantum leap in real life.
(3/13)
(3/13)
Nifty Strategy for educational purpose only:
Not sure how many will benefit from this system, but if one does I can assure you that you will make money in the long run.
Why am I doing this? To make you aware that simple strategies with a few lines of code will work. 1/n
Not sure how many will benefit from this system, but if one does I can assure you that you will make money in the long run.
Why am I doing this? To make you aware that simple strategies with a few lines of code will work. 1/n
Let me show you the backtested statistics before the strategy.
- Nifty positional strategy tested on Tradingview spot data
- Lots considered throughout Backtesting - 1 lot
- Indicator used - CCI(50)
- Hourly Timeframe
- commission & slippage - 0.03% deducted per leg 2/n
- Nifty positional strategy tested on Tradingview spot data
- Lots considered throughout Backtesting - 1 lot
- Indicator used - CCI(50)
- Hourly Timeframe
- commission & slippage - 0.03% deducted per leg 2/n
1) Time period tested - 01.01.2014 to 30.06.2020. Didn't include current trade that is running on 378 points.
2) Initial capital considered - 300,000 (2x drawdown included)
3) Ending capital - 872209
4) Nifty Points earned - 7629.51
5) Commission & slippage points- 1477.65 3/n
2) Initial capital considered - 300,000 (2x drawdown included)
3) Ending capital - 872209
4) Nifty Points earned - 7629.51
5) Commission & slippage points- 1477.65 3/n
