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ET Money

@ETMONEY

Nov 23 • 10 tweets • 2 min read • Read on X

Buying a home is one of the biggest decisions of your life.

The Loan that comes with it can feel long and expensive.

What if I tell you, a handy little trick to make a home loan INTEREST FREE?!

This simple 0.2% SIP can literally neutralise the entire interest cost.

A 🧵

Suppose you take a home loan of ₹50 lakhs for 20 years.

Interest rate = 9%
EMI = ₹44,986

This is the fixed amount you will pay each month for the next 20 years.

₹44,986 × 12 × 20 years = ₹1.08 crore.

This means you will repay more than double the amount you borrowed.

Of this ₹1.08 crore, your principal amount is only ₹50 lakhs.

The remaining ₹58 lakhs is the interest cost.

As you can see, the interest cost alone is bigger than the entire home loan.

Here’s how to offset this interest by investing smartly alongside your EMIs 👇

The idea is simple.

When you begin your home loan EMIs, start a small SIP at the same time.

The SIP amount should be roughly 0.16% of your loan amount.

For a ₹50 lakh loan, this works out to ₹8,000 per month.

This SIP should continue for the same 20-year period as your loan.

Now, let compounding do the heavy lifting.

We have assumed that the SIP earns 12% per annum, a reasonable long-term equity return.

At this rate, the ₹8,000 per month grows to around ₹79 lakhs in 20 years!

Over 20 years, your total SIP investment comes to ₹19 lakhs.

Subtract this from the final corpus of ₹79 lakhs and you are still left with a gain of ₹60 lakhs.

That’s more than your total interest cost of ₹58 lakhs.

You’ve effectively neutralised the interest on your home loan.

You still repay the EMIs as usual.

But through the SIP, you earn back more than the interest you pay.

This is what makes your home loan “interest free”.

Not because the bank forgives the interest, but because your investments grow enough to offset it completely.

This rule is applicable on ANY loan amount.

However, there’s ONE point to keep in mind.

The SIP percentage is linked to your loan’s interest rate.

If your interest rate shifts by 1%, the SIP shifts by 0.02 percentage points 👇

At an interest rate of 9%, the SIP needed is 0.16% of the loan amount.

If the rates drop to 8%, reduce it to 0.14%.

If the rates rise to 10%, increase it to 0.18%.

https://x.com/ETMONEY/status/1992612171264725225?s=20

If you find this useful, show some love. ❤️

Please like, share, and retweet the first tweet.

https://x.com/ETMONEY/status/1992612171264725225?s=20

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More from @ETMONEY

ET Money

@ETMONEY

Nov 21

Five friends started a ₹5,000 monthly SIP in Large Caps in January 2017.

Each made a different choice:

-A put the entire ₹5,000 in the biggest fund.
-B split it across the top 2 funds.
-C across 3.
-D across 4.
-E across 5.

Which friend ended with the highest returns?

A🧵

Friend C, who invested in 3 funds, earned the highest returns.

However, markets aren’t always so linear.

So, we repeated this experiment with different years, starting in 2018, 2019, 2020, and 2021.

How many funds struck the right balance in their portfolios?

Across every starting point, the sweet spot stayed between 2-3 funds.

Beyond that, returns flattened or declined.

This happens because most funds end up investing in same stocks.

Large Cap funds are mandated to invest 80% in the top 100 stocks - this creates a heavy overlap.

Read 11 tweets

ET Money

@ETMONEY

Nov 20

True story of IPO investing.

There seems to be some magic happening in the IPOs.

LOSS-making start-ups suddenly turn PROFITABLE before public listing.

Curious, we checked what’s happening.

We realised it’s the magic of accounting.

Here are some real examples.

A🧵

1. Pine Labs

In the last three financial years, it was loss-making.
Then, it turned net profitable in the first quarter of FY2026.

But how?

Thanks to other income and deferred tax.

‘Other income’ is money received from non-core business activity.

So, it can be an interest from fixed deposits or gains from some investments.

Sometimes, it can be due to provisions made in the earlier years.

Let’s understand how ‘provisions’ work. 👇

Read 16 tweets

ET Money

@ETMONEY

Nov 15

Few people understand India’s wealth-creation story like Karan Bhagat @KB_360_ONE

He & Yatin Shah built @360ONEWealth from 0 to ₹43,146 cr in 17 yrs.

In a rare chat, he shares:
• How the ultra-rich think
• Where the next fortunes lie
• How to go from ₹1cr → ₹100cr

A🧵

1. TRAITS THAT SET THE WEALTHY APART

Everyone wants exponential growth, but it’s rare.

Successful individuals make minor improvements consistently.

They do the same things, but try to do them better each day.

Over time, those tiny gains compound into exponential results.

FOCUS ON FEWER THINGS

Another trait of the highly successful: they don’t spread themselves thin.

They pick a few priorities and attack them with discipline, consistency, and depth.

Read 14 tweets

ET Money

@ETMONEY

Oct 29

The fee you pay to mutual funds could soon decrease.

SEBI has proposed 3 BIG changes:

- Lower transaction costs
- Performance-based fee
- Transparency in expense ratio

Great move for investors, but the stocks of AMCs fell post the proposal.

Here’s everything you must know. 🧵

To understand these changes clearly, you first need to know how mutual fund expenses work.

Funds have two main cost buckets, TER and brokerage costs.

One is visible to you. The other is not.

TER (Total Expense Ratio) is the main cost you see.

It includes fund management fees, GST, and statutory charges like securities and commodity transaction taxes and stamp duty.

These are deducted daily from your NAV.

Read 18 tweets

ET Money

@ETMONEY

Oct 28

Lenskart is set to raise ₹7,278 crore through an IPO.

On Twitter, many users are saying they will stay away from this offer.

Reason: A massive PE of 234x.

But PE may not be the best metric to judge the company.

So, are the concerns justified? A🧵

We will cover 5 key aspects in this analysis:

- Business Model of Lenskart
- Financials
- Valuations
- Key IPO details
- Strengths and challenges

Let’s start.

1. BUSINESS MODEL

Lenskart is a tech-driven eyewear company.

It focuses on designing, manufacturing, branding, and retailing of eyewear products.

Key Products: Prescription eyeglasses, sunglasses, and other products such as contact lenses and eyewear accessories.

Read 14 tweets

ET Money

@ETMONEY

Oct 17

When you buy a car, you pay for it with POST-tax money.

When you lease one through your employer, you pay with PRE-tax money.

That one difference can save you lakhs in income tax in the New Regime.

Here’s everything you need to know. 👇🧵

Let’s start with the basics.

In a car lease program, your employer ties up with a leasing company and a financier.

You choose the car. The leasing company buys it and hands it over to you.

Your employer then pays a monthly rental (deducted from your salary) to the leasing company.

There are two types of leases:

Dry lease: Only the car is leased. You pay for maintenance yourself.

Wet lease: Everything (maintenance, insurance, and fleet management) is bundled into the monthly rental.

Read 18 tweets

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