PPF vs Home_Loan

POSTED BY Sandip Pawar ON April 20, 2013 12:48 am COMMENTS (2)

I have home loan with SBI (2 year old) as well as I have started investing in PPF. 

If I put surplus amount in Maxgain account then would save interest 10% on that surplus amount but if I put same surplus amount at PPF I would gain 8.5% on it and effectively I would be paying only 1.5% interest on Homeloan from my pocket for the amount which i invested in PPF rather than loan.

So What should I concentrate more ? HomeLoan or PPF ? But I feel, from long term perspective, investing in PPF would build good balance for future. What is experts opinion ?

2 replies on this article “PPF vs Home_Loan”

  1. Ashal Jauhari says:
    April 20, 2013 at 6:52 am

    Dear Sandip, Please read my reply in addition to what dear Pattu (FFC) had told you above. Please keep your mly amount into Max Gain. On 2-3rd April every year, invest in PPF from Max Gain surplus amount. Investing lump sum into Max Gain is beneficial over mly investment in PPF. Please prepare your goals & investment plan & act accordingly.

    Always remember, an investment like PPF or FD or RD or MF….. is a positive compounding whereas loan repayment is negative compounding. So paying same amount in investment ‘ll provide different results over repayment of loan.

    Thanks

    Ashal

    Reply
  2. Free Financial Calculators says:
    April 20, 2013 at 4:03 am

    List down your financial goals and find out how you need to invest for each of them
    Focus on that first and begin investments towards those. Once that is place, if and when you get any lumpsum you can put it in the maxgain.

    Reply

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