NSE conducts a semi-annual index review to make changes (if any) in all the indices. This time, Nifty50 itself didn't see any changes but there were 5 changes in constituents of the Nifty Next 50 Index.
Nifty Next50 has been a favourite of many passive investors in recent years.
AUM (in Rs crore) of all Nifty Next50-based Index funds in India
As per the definition of largecap stocks, i.e. the top-100 stocks by market cap, Nifty Next50 is a largecap index made up of stocks ranked from 51 to 100. But the characteristics of Next50 are quite different (and more volatile) than Nifty50.
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If you invest just Rs 50,000 per year in NPS, then how much NPS Corpus will you accumulate. And how much pension will you get?
A thread🧵that shows all calculations for Rs 50,000 yearly NPS investment starting from 25, 30, 35 and 40 to the age of 670 at retirement 👇👇
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Why Rs 50,000 per year only?
Because even though NPS is designed exclusively for retirement planning, what attracts most people to NPS is the extra Rs 50,000 tax benefit it offers via deduction under the old regime.
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But before we do the NPS corpus and pension calculations, do understand NPS Maturity rules briefly 👇👇
Many call it the SIP trick to compensate for home loan interest.
What exactly is it?
Here is the thread🧵that tries to explain this simple idea 👇👇
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Suppose you take a Rs 50 lakh home loan at 8.5% for 20 years. Your EMI will be Rs 43,391 per month. The total interest you pay to the bank will be Rs 54-55 lakh.
So in total, and including principal repayment of Rs 50 lakh as well, you pay the bank Rs 1.05 Cr in 20 years
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Now let’s see what is this so-called 1% SIP trick for Home Loans
If you take a home loan, you will realize that loan principal gets paid off slowly during initial years. This is exactly why it is better to make prepayments earlier in tenure than later.
A thread🧵on why principal gets repaid slowly initially & how to prepay smartly👇
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Just remember that when you opt for long-tenure loans (like home loans), a significant part during the first few years is only about paying interest.
That is, the interest is front-loaded.
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In this thread, you will see that the EARLIER you make the prepayments, the better it is for you in terms of its impact on reducing the total interest paid during the loan tenure.