Benefit of pre-pay the home loan against investing it in Mutual fund

Q & A ForumCategory: Home Loans & CreditBenefit of pre-pay the home loan against investing it in Mutual fund
suhasc asked 4 years ago
Hello, I have an outstanding home loan of 10 Lacs , which has EMI of 40k. In next future I will be getting some extra money. Is it beneficial to pre-close the home loan by paying the outstanding amount vs investing that amount in a mutual fund. Would like to understand from experts considering I am getting tax benefit for interest I am paying on home loan
1 Answers
Sreekanth Staff answered 4 years ago
Hi, Few questions for self-introspection; 1 - How comfortable are you carrying a debt ? 2 - Did you complete more than half tenure of home loan? 3 - Have you ear-marked any investments for your retirement and other financial goals? 4 - Are you going with new tax regime from AY 2021-22?   Related article : Investing in Mutual Funds while paying Home Loan EMIs | Cost-Benefit Analysis
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