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Should I repay the Car loan or invest lump sum in Mutual Funds

I have a lump sum amount of 1.50 lakhs. To invest in equity funds for 5 years or repay the car loan of 2 lakhs @ 9.6% interest with EMI 4721 which is profitable?

May 18, 2017 by Adheena, Kerala  |   Mutual Fund

The wise decision would be to pay off the car loan as soon as possible. It is never advisable to invest in mutual funds or for that matter in any other investment avenues as long as you have a loan of any kind.

Once you have paid out the car loan in full, you should start a SIP upto the amount equivalent to your car monthly loan EMI that you have been paying so far. You will be able to create a good corpus over a long period of time through SIPs.

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