Home Loan Repayment vs Investing in Mutual Fund vs depositing money in Max Gain Account

POSTED BY maheshgaur ON November 16, 2013 10:46 am COMMENTS (2)

Dear Manish/Ashal,

I have just finished your book ” How to be Your Own Financial Planner in 10 Steps”

Superb book, good effort in simple language, started implementing some actions based on it.

Currently i have this query

I have 2 Home Loans

23 Lacs from HDFC @10.65% interest and 10 lacs from SBI with Max Gain @ 10.25%

Now every month i have a surplus of about 20-25K but getting confused what to do out of 3 options as below:

1. Invest in MF approx return 12-14% in long term interest free (Non guaranteed)

2. Repayment of HDFC Loan saving of 10.65% interest but losing on income tax front (but getting debt free)

3. Keeping in Maxgain and saving 10.25% interest and losing on income tax front. (assured saving and liquid money)

As i have 2 home loans i take interest benefit in SBI loan(upto1.5Lacs) and full interest deduction in HDFC loan after showing rent income.

Please advice on this.

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