Repay my EMI or Invest in a Fund? | Value Research If you are not struggling to pay your EMIs, do not repay your home loan. Invest in mutual funds instead
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Repay my EMI or Invest in a Fund?

If you are not struggling to pay your EMIs, do not repay your home loan. Invest in mutual funds instead

I have a home loan outstanding of around ₹13,50,000. I have to pay EMIs for another 16 years. Recently I closed my PPF account after maturity and got ₹2,83,000. I am honestly confused whether to repay my housing loan with this money or should I invest in a mutual fund? If I should invest in a mutual fund, can you please suggest a few schemes for the long term?
- Kunjan Vasavda

Are you struggling to pay the EMIs? If so, repay the home loan. Otherwise, invest the money in a mutual fund scheme. This is because home loan is typically considered a good loan because it offers a place to stay and a host of tax benefits. Also, it helps the person to save money on rent. Home loans also come with comparatively lower interest rates. Since you have said you have to pay EMI for another 16 years, we assume that the home loan is a relatively new one. If so, it is wise to keep paying the EMI as it will help you to claim tax benefits. If you are a novice to the stock market, invest the money via a systematic investment plan or Systematic transfer plan in a top-rated balanced fund.

Here is detailed story on the topic: Debt Repayment vs Investment


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