Stay Invested or Pay Back My Home Loan? I have tried to answer this question to the best of my understanding. Now its your turn to add more suggestions.
Stefan, asked very important question to me
Hello Shabbir,
I need your suggetions as I am finding it difficult to decide which would be a better stratergy. I am not a trader.
I have following shares: (Are these good stocks to hold for another 2 to 3 years perspective?)
1000 Infotech enterprises ltd bought at Rs 110.
34 RIL stocks bought at Rs.1080
130 Bharti Airtel at 356 Rs.I have a home loan: Current status:
Outstanding prinicpal: 12,00,000 Rs
Interest rate 10.5 % (Floating)
EMI: 18,300 Rs
Prinicpal component: Around 7700 Rs
Interest componet: Around 10600 RSMy question is should I sell all my shares and pay back the home loan or should I stay invested and just stick to my EMI?
Note: From my overseas assignments, I feel, I can earn and pay around 5 Lacs as lumpsum to the bank till this year end.
Please suggest me.
Regards,
Stefan
Now you have roughly cash level of 3,60,000
1000 x 280 = 280,000
34 x 1080 = 36720
130 x 320 = 41600
and so I would suggest you to offload 300k of your investment and pay back your loan. This would mean your EMI is reduced by close to 4000 Rs. Now start SIP of close to 4000 Rs in best mutual funds. Markets in 2010 is expected to be volatile and SIP would mean you have nullified the volatility to an extent. The other 500k you can pay would mean you would be almost done with the loan by the end of this year.
This is my opinion or I would say this is what I would have done and now I leave it to the users as well to provide some valuable suggestions.
Over to you guys 😀
i have invested lump sum 5k in Taurus Tax Shield and also started sip of 1000 rs from feb. And already have sip 1000 rs in sbi magnum tax saver 93. Is it right strategy and if not, then suggest.
Pankaj – See http://shabbir.in/best-tax-saving-funds/
Hello Shabbir,
Thanks a lot for your suggetion. I have staerted taking steps in this direction. Also the EMI calculator very usefull.
Regards,
Stefan
Stefan,
My advise to you is stay away from the markets.. Instead if you have a substantial income every month invest in real estate and as shabbir says invest in some good SIP’s. I guess Shabbir is the right person to advise you on a good SIP portfolio….
The markets are indeed going to be highly volatile this year and Blue Chips will not return much to investors. MF’s and FII’s are again betting on MID & Small Caps so i guess this market isnt our cup of tea unless if hits lower levels.
I would opt to stay out for a while.
Rgds
Melwyn