Azharuddin
TF Buzz
I am thinking to take a personal loan of 10L at 11% and invest in MF ..is it a good idea?
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Investment of 10L
- Thread starter Azharuddin
- Start date
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- Tags
- investment
superstar@123
TF Premier
No please !
Investment in risky assets are not to be done from borrowed money!!!
Investment in risky assets are not to be done from borrowed money!!!
Azharuddin
TF Buzz
But I feel MF investment is safer than stocks
Take for example equity savings funds , they can easily give around 18% return ..so 18-11 =7% profit!
You might feel this is less , but in 10L this is 70k profit per year!
If the market corrects you will be in deep trouble
pinki
TF Legend
Mutual fund Investments are subject to market risks, read all scheme related documents carefully!
Jokes aside,
Do not take any loan to invest in so called higher returns MF, u will regret . Beware and stop thinking all this bla bla profit of 70k / year.
vine
TF Legend
Absolutely No.
Don't do that.
vine
TF Legend
@Azharuddin
People say market 'correction' when they mean market goes down. Try to think about what's the opposite of that.
So,
Stock markets and Equity Mutual funds are altogether different beasts. Don't go near them if you don't understand them.
6ix9ine
TF Legend
You are not considering the other side, you’re only focusing on the positive side.
Think about this: What would you do if you faced a recession similar to 2008? Or if another COVID-like shit comes to India? Would you be able to repay 10L with interest? Do you have the guts to hold onto your equity portfolio when it’s significantly down? Have you thought about the complications to your CIBIL score if you miss a single EMI?
There are many factors to consider, think about them. It’s true that equity can provide a decent %, but that’s only in the long run when these random falls gets averaged out.
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Mutual funds are a basket of stocks
DO NOT INVEST FROM BORROWED MONEY thinking there is an arbitrage. Returns are not guaranteed but your EMI payment will be guaranteed
EternallyHopeful
TF Premier
Never ever take personal loans except some dire emergency situations (such as health emergency). And never ever take personal loan in the hope of deploying that money some place else to earn the difference. And stock market is risky and unpredictable. Invest only that money in stock market (stocks, mutual funds, F&O) which, if totally lost, won't affect your financial situation at all. Remember : No amount of money is worth it if it robs you of your mental peace.
Personal loan at 11% ? Which bank?
Azharuddin
TF Buzz
HDFC, icici, axis etc
Above 5l. For lower amount it would be 11.88% for hdfc & others.
Bank generally asks to deposit 1 or 2 emi at starting of loan only. Have you considered those before calculating interest on loan?
Azharuddin
TF Buzz
Naa bro ...no one asked
I had taken loan last year, no one asked anything...yes they took cheque but no deposit
Noone asks,which bank & loan are you talking about?
But it's not logical e.g. if the loan amount is 10l & they want 50k emi at starting,they can simply process it for 9.5l,
I've personally never heard about this practice.
I think I have seen this with Bajaj Finserv card emi payments. And confused it with loan probably
