21/01/2019
Dr. Ankit Ajmera (Ahmedabad):
Maulesh : I want to start SIP of Rs. 10000 in two different mutual fund companies Rs.5000 each.
Dr. AAA : Why two companies?
Maulesh : As warren buffet says..NEVER PUT ALL YOUR EGGS IN ONE BASKET
Dr. AAA : That's true but in other sense. Here the basket is ASSET CLASS meaning Gold, Real estate, Equity and Bank FD.
Tell me yr home loan details and yr salary.
Maulesh : My salary is 1 lakh and my EMI is Rs. 50000. I took 52 lakh loan for 75 lakh home. 3 years completed.
Dr. AAA : Great dear. Your current monthly expense?
Maulesh : Rs. 30000 and I can save now Rs.10000 as my car loan EMI is completed.
Dr. AAA : 🙂 Hey..great. Meaning your savings was Rs. 50000 EMI Home + Rs. 10000 EMI car = Rs. 60000. Now you want to start SIP instead of EMI. But have you checked, how much % of your savings goes to your home loan?
Maulesh : Around 85%
Dr. AAA : That's my worry. You are putting all your eggs in one basket (Real Estate - Home)
Maulesh : But, it is necessary. I want to save tax
Dr. AAA : Oh..what tax? Only 2 lakh interest of home loan (30% tax bracket - Rs. 60000 save in a year)
Maulesh : Yes.
Dr. AAA : But my dear Maulesh, at the cost of interest of your home loan. Your EMI is 50k for 20 years. Meaning 50 x 12 x 20 = 1.2 crore against yr loan of Rs. 52 lakh.
1.2 crore - 52 lakh = 68 lakh interest for 20 years almost 3.5 lakh interest per annum by saving Rs. 60000 per annum tax. Your loss is 3.5 lakh - 60000 = 2.9 lakh per annum. (Interest)
Maulesh : OMG. 😱😱
Really? Nobody told me about this. Not even my CA.
Dr. AAA : And yes.. If you invest those Rs. 50000 per month in SIP for 20 years @ 10% CAGR, you will get 3.5 crore or @ 12% 4.5 crore.
Maulesh : 😟😢😰 Oh..why have I purchased home?
Thanks Dr. AAA. I will tell everybody not to buy second home for investment. Instead start SIP. *Don’t save tax. Save money.*
Dr. AAA : And yes...mutual fund SIP avg return in 20 years is 18%.
*So it comes to 10 crore*
Maulesh : What about 25 lakh down payment?
Dr. AAA : 7 crore after 20 years
Maulesh : Meaning 17 crore total.. 😱😱
Oh.. Don’t tell me. My 75 lakh home after 20 years will never give me 17 crore. 😰😰
Ghar ghar ki kahani..
