Invest 10% Of Your Monthly EMI In Mutual Funds And Get Back The Interest On Your Home Loan
Getting a home loan has become a must, but have you considered how much you pay back to the bank? Taking out a home loan has become a need for working individuals in recent years. However, the amount of interest you pay on your house loan is sometimes greater than the loan amount. If you calculate how much you'll pay on a home loan of Rs 50 lakh, you'll see that the loan would cost you twice as much You can avoid this loss if you are a wise investor. This is where a mutual fund's Systematic Investment Plan (SIP) might help. You can recover the entire house loan cost by starting a SIP equivalent to 10% of the monthly installment amount as soon as the EMI begins. At Zebu, we understand that traders and investors with very high aspirations need nothing short of the. best Indian trading platform with its plethora of features and scanners. As one of the top brokers in share market in India, we have the privilege of providing our users with their best trading accounts. The following is a computation for a Rs 50 lakh home loan. Loan amount: 50,00,000 EMI Tenure: 20 years Interest rate: 9% p.a Total interest: 57,96,000 Total payment: 1,07,96,000 Monthly EMI: 45,000 You must repay around Rs 57 lakh in 20 years on a loan of Rs 50 lakh, which is more than the principal amount. As a smart investor, you can do one more step in getting back the interest amount of 57 lakh at the end of 20 years. Take 10% of the monthly EMI - that is, 4,500, and invest it in a good mutual fund scheme. For example, if you choose a flexicap fund that gives you a return of 15% per annum as interest, you can invest Rs 4,500 in that every month for the same 20 years as your home loan tenure. Monthly SIP: Rs 4,500 (10% of EMI) Tenure: 20 years (same as home loan tenure) Average returns: 15% per annum Amount invested: Rs 10,80,000 Total value of SIP after 20 years: Rs 68,21,797 On a 50 lakh loan, you give the bank around Rs 57 lakh over 20 years. During these 20 years, you can build a corpus of around Rs 68 lakhs by investing merely Rs 4,500 per month in SIP. That means you can minimise your loss to zero here and get your interest back. You can get one of the . best Indian trading platforms with its plethora of features and scanners to build your investment portfolio. As one of the top brokers in share market in India, we have the privilege of providing our users with their best trading accounts.