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Want to invest in one year SIP to pay back home loan

I want to prepay my home loan on an annual basis. For this, I wish to initiate a SIP for a year to get some extra gains (quite possible to end up in loss in case of a meltdown during which I will not exit from the fund). I request you to suggest some funds to invest for this purpose?

May 3, 2017 by Vinu, Mumbai  |   Mutual Fund

Good to hear that you are planning to pay back your home loan on an annual basis by creating a corpus from mutual fund SIPs.

Please note that since the investment horizon is one year only and the objective is to repay the loan at the end of 12 months every year, you should not invest in equity funds. You should invest in ultra short term funds or liquid funds which will give you better than savings bank and FD (one year term) returns with almost no volatility.

You can select the top performing funds in these two categories from here https://www.advisorkhoj.com/mutual-funds..., https://www.advisorkhoj.com/mutual-funds...

Hope the above helps! Thanks for writing to Advisorkhoj!!

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