If you want to turn adversities to opportunities, invest in equities.
You must be paying home loan EMI for your dream home. It pinches a lot. Ever thought of a way to get all the principal and interest back.
Is it possible. How?
Invest 10% extra of your Home Loan’s EMI in mutual fund equity Systematic investment plan (SIP) and all your home loan principal and interest will recovered with profit in 20 years.
Example: For Home Loan of Rs 20 lakhs for 20 years with Rate of Interest of 10.50% per annum, EMI is Rs 19,968.
In 20 Years, one will be paying Rs 47,92,930 towards home loan.
i.e Interest: Rs 27,92,930 &
Principal: Rs 20,00,000.
On that other hand, for SIP of Rs 2,000 (10% of Rs 19,968, which is EMI) for 20 years with 20.4% expected return, Fund Value will multiply to Rs 67,18,375.
(Sensex has given an average return of 20.4% in last 36 years from 1979 to 2015)
Thus you get back all your principal and interest and also earn a cool profit of Rs 19,25,455.