2nd Flat or Invest in RD

POSTED BY Dev ON March 28, 2013 9:48 am COMMENTS (9)


I am currently looking for investment /Financial planning, I have completed my home loan and now i am looking for possiblity of investment. 

Option 1: Buy 600 sqft flat in chennai for the price of 36L (have to take loan of 29L).

EMI : 29000 per month. Have to arrange self funds 7 Lacs.

Expectation : Rental income may be around 8-10K month. Property appreciation in future(not sure !!!)


Option 2: Invest that same EMI amount to Some RD (and then convert FD at the end of each year).

Please let me know which one option will be suitable.

9 replies on this article “2nd Flat or Invest in RD”

  1. Dear Vandhi, as of now you may start with Quantum Long Term Eq. fund.



  2. Vandhi V says:

    Yes, even i am also thinking of SIP route for long term perspective of investment in MF. Please let me know which fund to choose.

  3. Dear Vandhi, some personal commitments + the market down trend made your losses but after that you sincerely not tried to rework on your losses. Now is the time to start investing again in Eq. MFs.

    Please think over it.



  4. Vandhi V says:

    Actually due to some personal commitment, i was forced to exit the market with huge loss, After that i never been active investor on Stocks/MF. Like all other retail investor i do have some fear to enter again. At the same time, now i am in position to think about my financial planning, as i am out my Loan commitment. So ready for investment. But not sure the right direction.

    Some Financial planner suggest PPF, RD some cash instruments. So i am in search mode now,.

    1. Ramesh says:

      “Forced to exit the market” means bad, very bad, asset allocation system. Work on it. And first think, and then do.
      First prepare this.

  5. Dear Vandhi, you did the most common mistake of retail investors. Investing when the market was on high & redeeming & not investing when market was in lows. Actually you should do opposite. In fact, had you been continuing your investments since 2006 till date, in MF, you w’d sit on a nice profit now. In case of direct stocks, it were your calls who gone wrong so please accept it.

    Think over it.

  6. Dear Vandhi, why are you not thinking of investing in MFs?



    1. Vandhi V says:


      I have invested in MF/Stocks during that 2006-2008 period, due to market recession/Satyam scam, i have lost most of my money,. so now i tend go towards Real estate or FD/RD route

  7. If you are living in own house, unless you can fund 50% of a second house not much financial sense in investing.

    RD+ FD option is tax inefficient. Also depending on your goals may not beat inflation. Get your goals lines up and map the investment to your goals and invest according to timeframe and risk appetitte

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