Stay Invested or Pay Back Home Loan?

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 RS

My 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 😀