Hi Friends,
I am a 29 year old professional, have a home loan of 20 lacs for 20 years. I intend to close the home loan within 10 – 12 years. To achieve the home loan closure as well creating a fund for future needs, I met a mutual fund adviser recently. He advised me to go for a SIP of Rs 4000 pm and increase the amount as and when my income increases. He says it’s a better option to go for Rs. 1000 on every week of the month on different mutual funds. The options he provided were Kotak, HDFC and Birla Sun life, one would be for Rs.2000. Could you please advise if this is a good option and also are the MFs suggested good enough?
Also, I know many in the forum are not big fans of early home loan closure. My current EMI is over 18k and I pay 20k so as to decrease the principal substantially early on. Do you think that I should just carry on paying 20k pm and not worry about closing it purely from a financial perspective? The EMIs would increase from Apr 2014 considerably since I had taken the teaser loan from SBI and its interest rates were fixed for the first 3 years (8, 9 and 9 respectively). Thanks for reading my long query, please let me know if you need any more information. Cheers!!!
Thanks.