Smart SIP: A Game-Changer for Home Loan Repayment
In today’s time, taking home loan has become a common thing. But the biggest problem in this is the high interest on home loan, due to this interest the home loan becomes a big burden. In such a situation, Smart SIP for home loans can be a great option for people.
What is Smart SIP and understand the formula of 15% SIP
Let us explain to you what is the meaning of Smart SIP? You invest a fixed amount in a mutual fund along with your home loan EMI through SIP. In this way, you can not only repay your home loan quickly but also invest for your future.
Many financial experts believe that for those who want to take a home loan, investing 15% of the EMI in SIP can be a good option. For example, if your EMI is Rs 20,000, you can start an SIP of Rs 3,000 per month.
Home loan me Benefits of Smart SIP
Let us tell you, by investing in SIP, you can repay your home loan early and you can also save interest by repaying the loan early. You can also invest for your future through SIP and not only this, you get tax benefits on investing in many mutual funds.
Know how you can choose the right mutual fund. First of all, choose a mutual fund according to your financial goals and your risk appetite. You can take advice from a financial expert.
It is difficult to say that the entire interest amount will be recovered once the loan is over. Because the returns from investing in mutual funds depend on the market. However, investing in mutual funds is expected to yield good returns in the long run.
Disclaimer: This article is for informational purposes only. Consult your financial advisor before making any investment.
Also read: https://investcly.com/new-incometax-bill/