Q. I have a question regarding Payment of Home Loan vs. Investment. Should a person start a SIP for his retirement or should he plan to prepay his Home Loan first. Say if a person is having a Home loan of 30L and paying EMI of 30K and having a SIP of 10K is good option or having EMI of 40K is a good option, or having a 10K of reoccurring deposit for one year and with this amount prepay his loan after each year.
Dear Sachin, in my view, Increase your EMI to 35K & invest 5K mly through SIPs for your retirement. The extra amount in EMI ‘ll help to close your loan early & the SIPs ‘ll give the power of compounding to your retirement portfolio.