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Should I repay loan or invest ?

Hi

1)    I have a home-loan of about Rs 25 lacs, for 20 yrs, of which 15 lacs has been disbursed by the bank. On this, I am paying an EMI of about 17000 p.m.  I am using the EMI to gain on the tax benefit.

2)  I surrendered a ULIP policy and got about 13 lacs. 

3)   I have a goal of getting about 20 lacs in 7 yrs, in time for the child’s higher education needs.

So, my question is, on what is the best way to reach the goal, with the amount ?

    A) So, should I repay the home-loan and invest the EMI saved towards some MF ?

   Or

    B) Invest the lump-sum in some post-office scheme for long-term ? I am wary investing this amount into equity ?

Thanks

Ashok  

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