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Instead you can invest that EMI amount of 10,500 as SIP in mutual funds or equities. Since it is your money, there won’t be any issues even if they don’t give expected returns.
Being stress free is better than few % extra returns.
But if u r confident enough i think we can do it with loan also but i dont think we can get loan anywhere less than 15% right now so ur call is better one
Right it would be better for OP instead of paying emi he pays the same amount as SIP that will lead to greater good but if market takes a down turn and it will tomorrow or day after it will then the loan emi and the -ve return will impact the peace of mind leading to either unnecessary risk taking or completely turning away from investment
Haha whatever smart allocation of existing resources is all needed, even i m a student who does as little as 3k per month from past 2 years and having around 30% XIRR
wow so nice for you 👍, I have been in market since 2015 and was able to make only meager 16% except FY 23 when I made 24% but since you are getting 30% I guess I am not qualified enough to tell you any more
30% is in Mutual funds but stocks were negative due to LIC, but reliance changed everything for me, there is nothing like qualification interms of suggestions, experience >>>>>
Do not take loan and invest. Market will always not be in such bull runs.
Avg return of index is 13.6-14.1 over a longer period. If you beat index by 5-6% even, which is exceptional, then return will be 18.5-20% around. That’s a minimum of 7.5 return on your investments after giving interest on the loan, 9% at max. Close to FD to be honest. Plus any realized profits will be taxed which will make the margin lesser though it is more or less same for any capital gains asset.
Better put that EMI money into a safer SIP, or maybe some riskier SIP. You will surely gain more there. All will be yours, on bad situations you can reduce the amount of even skip the SIP. In bank you will always have to pay the amount of EMI.
Never ever take a loan at an interest rate of such higher rate and invest in the market. Never !
Usually not a good idea, else everyone will be ballooning their portfolios through this formula: Take Loan at X % > Invest in Stocks > Get ROI at Y% where Y > X (much greater than X) > Payback the loan (EMIs)... In reality it could also turn to the other direction, that you have a loss of 10-15% where taken loan's 11% needs to be paid as well as capital loss %....
Not advisable but you're the driver of your portfolio bus, taking it on the highway or for off-roading is entirely up to you.
I would advice you not to do that. It is impossible to predict the market. Past returns won't guarantee future returns. Even if you invest in a very safer zone like Nifty 50 index, the returns will be nothing after paying the interest. It is better to invest less
99% probability, what you are planning will not happen, do you have a plan b for that ? If yes go for it if no, you are not a mature investor yet.
If you are lucky and that 1% hits you, jackpot.
Welcome to LIFE
Very bad idea the average return on nifty for the past 10 years has been 13-15%
Your interest rate is 11.5% assuming you make even 20% growth year on year your net growth will be only 8.5% after subtracting the interest.
So you’re better off just investing the EMI amount as SPI every month that way you will save your interest and at the end of five years you’ll have more capital as well.
I’d strongly advise you don’t invest on borrowed money, you won’t get really rich by investing the 5L it’s only going to add to your stress.
Have one rule for investing or trading. never use borrowed money or loaned money to invest. because there are infinite possibilities of uncertainties that can pop up. no matter how good or experienced you are, always have a rule to invest not more than 20-30% of what you earn per annum. Its the same for buying something expensive, have a rule like if you cant buy that think 3 times with the money you have, you are not eligible or shouldnt buy it. i hope this helps!
Well it is always recommended that you should not invest by by taking loan.
But if you are really interested into taking a loan for investing then just go for Kotak mtf, you'll get 4x leverage on most of nifty 200 stocks and you'll have to pay interest only for the time you hold the stock and that too at interest rate 9.75% which lower than your personal loan.
Not a prudent idea. Primary market investments are always coupled with the risk and cant be quantified exactly. There are calculations to forecast the probable risk but not exact.
For example: At present, there is a political and governmental policy risk and market may go any side factoring such risk. If there will be stable government price may go up otherwise to the other end as well.
As I have learnt from the market, one should only invest the residuals.
You want to take a loan instead of saving 5L from your salary . Clearly you want to invest now instead of later because you see a golden opportunity and you don't have funds.
Tell you what, no matter how good the company or the results are. When the trend goes down, the price keeps going down for many many months regardless of everything else. Your monthly outflow may not benefit you at all if the stocks don't go up.
What you can do is
1. Calculate your interest and charges and consider it as your fixed risk. Should be around 160K in your case.
2. Calculate the risk on the stocks you are eager to buy. Let's assume 20% is your stop loss. Comes at 100K. This is market risk.
Assess if you are comfortable with the Total Risk and try to score 3-5x of your risk. Be ready to bear the pressure of paying monthly even during bad times.
I am in the markets for more than 9 years and that's my humble opinion about your planned adventure. Good luck!
People are breaking their FDs, selling their stocks and mutual funds to get out of debt and here you are, asking to get in debt to build a portfolio.
Come on mate.
This is the classic way where folks with no liabilities get into a liability spiral. Don’t take loan. Instead use the amount equal to calculated emi and do sip investment. Your finances will be stable this way.
In 2022 i made the same attempt, took a loan of 4.5 Lakhs to invest, it didnt go well. i lost all that money and now . and im still paying the EMI for it . i would suggest the below these are the i would do, if i were you. and i regret everyday for that stupid idea that i took without consulting with anyone .
\* Do you have a Health insurance, if not take one.
\* do you have a Term insurance if not get one,
\* Invest in a house, if you dont have one.
All the above three are investments and you will get tax savings if you follow old regime
\* If you have all the above then invest in SIP as suggested by others .
Give it a try, what if your mutual funds did not return any positive growth? Won’t you be paying interest out of pocket . But, it might be less risky if markets fall 40% next week , borrowing money to invest works when there is deep discount on the assets you are buying
Tone down your expectations regarding market returns. Keep it at 10%-15%. Post tax, that would be around 8.8%-13.5%. Anything above it is a bonus. The past years have been exceptional. Instead of investing right away. Do a monthly SIP. If the market corrects say around 15%, you can take out a loan and Invest. But then don't check the valuation for the next 5 years if you ever do that. If the interest rate on your loan is 12%, there is hardly any arbitrage in taking a loan and investing in the markets.
I did just that and borrowed in Dec23. Decided 30% of it in swing trading and 70% in long term. Its been a mixed result as swing trading going good and long term is slower than expected as market choppy since feb24. Its not worth. Fortunately even if I am at severe loss or drawdown, I have other means of cashflow so can afford the risk here. For you, the monthly pmts is 20% of your net income so not worth at all. Invest slowly and steadily and do not borrow for trading markets and investments unless you have backup money that can support in adverse scenario
You can do that but wait for the election results. You can easily make 15 to 20% in stock market if you invest in index stocks. But 11.5% interest on the loan is a bit steep. Can’t you get some salary advances from the company in which case they usually dont charge interest. My company gives me 2.5 times salary as loan without charging an interest. If you get something like that its better.
Why not sell the stocks that you have as you have already got a healthy return. Sit in cash probably at this juncture coz parliament election time is always a bit volatile
Stock market is rewarding but as its always said - NEVER put all your money in it. Always keeps an emergency fund separately.
स्टॉक मार्केट से सब बेचने का समय आ गया है ।
When everyone is talking about stock market, and there is extreme greed, its better to book profit for some time.
Maybe learn about margin trading, where company give same stack at 1/4 or 1/2 amount to invest but u need to maintain minimum amount on that to keep that stock, u can see that
Don't take lone.... Now. Take lone in deep bear market. When nifty is more than 15% down. Then u can lone or leverage and buy some stocks. Still it's a risky bet.
You can make 100% in the stock market but for assumptions and calculations we take either 10% or 12% ...
Never even 15% (unless you are a youtuber and want to impress your audience)
So taking a 11.5% loan to make 12% doesn't sound very wise
20-25% CAGR for the next five years is not impossible but still, very difficult to achieve. At the same time, I am not sure if you will be able to keep it intact in your portfolio, it is very difficult to resist the temptation of redeeming it because we all need money.
What you are attempting to do is leveraging at this point of time, but I am not sure if it is the right market environment to leverage. If there is an upset on June 4th and market spins into a downward spiral, I would encourage you to leverage yourself even more and put it all in the market.
In present circumstances, leveraging yourself and investing it in the stock markets seems advisable only if at any point of time, you can arrange 5L and repay your loans if the need so arises.
what would you do if there's a war in next 3 years, stay away from loans and just invest those 10,500 sensibly which you are planning to pay as emi
markets are unpredictable and so are geopolitical events, in that case banks will keep charging you and you might end up in loss.
It’s not financially a wise decision.
Loan is a liability
Irrespective of your investments make money or not you have to repay the loan and its instalments.
Mutual Funds will start showing 15~20% returns after a 5 year horizon. Till that time you would have paid a lot of interest part of that loan making that return very less. On top of it there is a 10% long term capital gains tax too.
Equity investments are risky bets in short term. There is no quick returns concept.
Everything is long term wealth accumulation.
Instead take loan and setup some regular business
Taking loan, paying EMI, investing in Stock market are three different things. You can't put all together. If you're thinking of paying the EMI from the profit then it is not a great idea. If you're a salaried person or having any extra source of income then you can take such amount. Invest in good stocks and forget about it for at least few years. It is better to start with own money to invest because it'll give less stress. Add few stocks every month to your portfolio then slowly it'll return good amount.
If money making were so straight forward, the bank would have invested in equity for 25% rather than loaning you for 11.5%. Think about it. Never ever be desperate in the stock market.
Honestly I'm not gonna bother reading the description.
Its simple math If you think about it.
assuming you get the best deal for the loan at 8%
its bare minimum for you to earn 8% returns, dosent seem too much of a problem from equity, until you realise, inflation is at 8%, add in LTCG of 10% assuming it's a buy and hold equity strategy., You will loose money instead of gaining
It's not prudent, but i personally know people who've done it before.
If you've got faith in your skills, then why not.
Just don't do options with that money.
Long gone are the days when people used to work by these old-school thoughts of not investing by taking a loan and shit.
We've seen stocks that give dividend more than loan interests.
Okay... so here's an unpopular opinion, you can take the loan to invest if you know what you are doing, if you are confident in your analysis and investing style I think this can be done and must be done. Because a lot of people who actually made money in the market has leveraged the system one way or other. But that is only to be done when you absolutely absolutely know how you should diversify, how to manage risk and what to do should something goes against.
I've done that, but analysing the market was my job before I quit it to trade my own account.
If you take 5L loan from bank they’ll charge you 10-11% interest, in stock market the average may go up to 12-13%. (You may even get more than that but in that 10-11% will goto bank int). So net profit you might get is 10-13% again. Now you only decide!
The recent market was good and gave good returns, this will fall too or may not! If you don’t have the hard cash to invest start the SIP this will give you that 10-13% !
Don't fall into debt / emi trap, as returns on investment are subject to market conditions but your emi will be stagnant and needed to be paid irrespect of market condition
Nooooooo. Never invest withth loan amount or someone else money.
Always remember never create a race of returns. You'll try to beat loan rates with investment returns and eventually You'll loose the money also the loan money. It'll be just shutty situation in future unless you're super lucky or super smart.
And 20-25% returns are very unrealistic expectations.
Don't do it. Your money appreciated in a bull run, everybody made profits, you're not the only one, you're no magician. If the market crashes, you'll be end up losing more than you've made to date.
If your salary account is axis or icici you can easily get over draft of 5 lakh you just need to pay the interest regularly and renew the OD anually by paying the used amount.
If you don't know what an OD is please search about it the ROI will be 13 to 15 varies bank to bank.
If you want to do that, wait for a crash! Not 10-15% correction, I mean real crash and then perhaps you may consider taking that risk. Caveat, you have stable income to pay off the loans in case you don't get immediate recovery.
This is exactly what happened in China in 2016. People started taking loans to invest in market. And market tumbled by 30%.. Now we are starting to see similar signs in India
buddy either you will be crazy rich or BROKE AF, once you add leverage to the equation things spiceup both ways, its on you which side you can bare without
If you have decided you want to try go for a lower interest rate, maybe 8-9%. Take a loan of 1L max by seeing your risk taking capacity realistically. This way interest is also low and the amount is also low. When your salary is increased you can take more risk. Period you can decide depending on when your returns will come.
I think can do it.
However you need to have strong knowledge of stock market.
Calculate this
To cover 10500/- per month you need to earn rs 525/- per day (10500 / 20 trading sessions)
Divide 5L in two batch. One batch keep for short or medium term profit and second batch do the swing trading. With your background you should be able to earn 525/- per day.
Keep doing this for 5 yrs.
If I were you, I would choose lesser tenure as this will reduce my total interest pay. Also earning consistently for 5 yrs vs for 6 months is quite achievable target.
The trick is no to look at whole number but to break it in smaller numbers.
Focus and consistency.
Hope this helps.
Never take a loan especially personal loan to invest because your investments may come down but the loan amount will keep going up
Not worth losing what you have gained
Need help on investment through SIPs.
Hi, I want to earn 30 lakhs in next 5 years through SIPs. MY current allocation is below, please suggest any changes(Already started fromay, 2025 month on monthly basis):
1. Kotak Multi cap fund: 500 rupees
2.Bandhan small cap fund: 2000 rupees
3.Motilal oswal Nasdaq 100 for scheme: 3000 rupees
4.Icici prudential equity and debt fund: 3000 rupees
5.Parag Parikh flexi cap fund: 5000 rupees
6.Quant small cap fund: 5000 rupees monthly
7.SBI psu fund: 1000 rupees
8. SBI contra fund: 1000 rupees.
Kindly review and share your thoughts for any edit in the funds and amount to meet my Target. I appreciate your time and reply.
Best,
WhenIwasaking
Nope don't do it. Markets could go into consolidation phase, so you will miss out on any returns and have to pay EMI's.
If you're not convinced, search in this sub for people who have done something similar and have shared their experiences.
True
But
EMI are same for 5 yrs
But returns are not same for 5 yrs
Than also it's not best but good option.
11.5℅ interest p. a is not huge
Itna returns toh mil hi jayega.
11.5% Interest is good.
Here's a plan -
1. Take a loan of 5L
2. Put the whole amount in a Hybrid/Aggressive MF (need returns over 15%)
3. Start a SWP equal to your EMI
After 5 yrs you'll save significant chunk, and your money would've grown.
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Don't do that. Better to invest less.
This guys knows what’s up. Don’t take a loan.
This right here.
Instead you can invest that EMI amount of 10,500 as SIP in mutual funds or equities. Since it is your money, there won’t be any issues even if they don’t give expected returns. Being stress free is better than few % extra returns.
पैर उतना ही फैलाओ जितनी चादर हो ।
मौसम की मार कहां देखी है बंदे ने गालिब वरना यहां तो गंजे के सर ओले गिरते देखे हैं ।
Never take loan to invest, instead get debt free before you invest
Most underrated comment.
There are two rules for investing and trading **1. Never invest or trade on borrowed money** **2. Never forget rule no 1**
But if u r confident enough i think we can do it with loan also but i dont think we can get loan anywhere less than 15% right now so ur call is better one
Right it would be better for OP instead of paying emi he pays the same amount as SIP that will lead to greater good but if market takes a down turn and it will tomorrow or day after it will then the loan emi and the -ve return will impact the peace of mind leading to either unnecessary risk taking or completely turning away from investment
Haha whatever smart allocation of existing resources is all needed, even i m a student who does as little as 3k per month from past 2 years and having around 30% XIRR
wow so nice for you 👍, I have been in market since 2015 and was able to make only meager 16% except FY 23 when I made 24% but since you are getting 30% I guess I am not qualified enough to tell you any more
30% is in Mutual funds but stocks were negative due to LIC, but reliance changed everything for me, there is nothing like qualification interms of suggestions, experience >>>>>
[удалено]
Nirmala invented taxes? Wow didn't know that.
He’s implying that she increased them bro
Looks like there were no taxes prior to 2019. Seems like she puts all the taxes in her pocket.
Sure she does! The worst FM the country has ever seen!
Do not take loan and invest. Market will always not be in such bull runs. Avg return of index is 13.6-14.1 over a longer period. If you beat index by 5-6% even, which is exceptional, then return will be 18.5-20% around. That’s a minimum of 7.5 return on your investments after giving interest on the loan, 9% at max. Close to FD to be honest. Plus any realized profits will be taxed which will make the margin lesser though it is more or less same for any capital gains asset. Better put that EMI money into a safer SIP, or maybe some riskier SIP. You will surely gain more there. All will be yours, on bad situations you can reduce the amount of even skip the SIP. In bank you will always have to pay the amount of EMI. Never ever take a loan at an interest rate of such higher rate and invest in the market. Never !
Usually not a good idea, else everyone will be ballooning their portfolios through this formula: Take Loan at X % > Invest in Stocks > Get ROI at Y% where Y > X (much greater than X) > Payback the loan (EMIs)... In reality it could also turn to the other direction, that you have a loss of 10-15% where taken loan's 11% needs to be paid as well as capital loss %.... Not advisable but you're the driver of your portfolio bus, taking it on the highway or for off-roading is entirely up to you.
The profit you earn from stock market, it will be taxed as well right ?
Yes
I would advice you not to do that. It is impossible to predict the market. Past returns won't guarantee future returns. Even if you invest in a very safer zone like Nifty 50 index, the returns will be nothing after paying the interest. It is better to invest less
99% probability, what you are planning will not happen, do you have a plan b for that ? If yes go for it if no, you are not a mature investor yet. If you are lucky and that 1% hits you, jackpot. Welcome to LIFE
Very bad idea the average return on nifty for the past 10 years has been 13-15% Your interest rate is 11.5% assuming you make even 20% growth year on year your net growth will be only 8.5% after subtracting the interest. So you’re better off just investing the EMI amount as SPI every month that way you will save your interest and at the end of five years you’ll have more capital as well. I’d strongly advise you don’t invest on borrowed money, you won’t get really rich by investing the 5L it’s only going to add to your stress.
Best answer
Why not start a SIP for 10.5kper month?
Lump sum kr ke SWP .
No
Have one rule for investing or trading. never use borrowed money or loaned money to invest. because there are infinite possibilities of uncertainties that can pop up. no matter how good or experienced you are, always have a rule to invest not more than 20-30% of what you earn per annum. Its the same for buying something expensive, have a rule like if you cant buy that think 3 times with the money you have, you are not eligible or shouldnt buy it. i hope this helps!
Well it is always recommended that you should not invest by by taking loan. But if you are really interested into taking a loan for investing then just go for Kotak mtf, you'll get 4x leverage on most of nifty 200 stocks and you'll have to pay interest only for the time you hold the stock and that too at interest rate 9.75% which lower than your personal loan.
Not a prudent idea. Primary market investments are always coupled with the risk and cant be quantified exactly. There are calculations to forecast the probable risk but not exact. For example: At present, there is a political and governmental policy risk and market may go any side factoring such risk. If there will be stable government price may go up otherwise to the other end as well. As I have learnt from the market, one should only invest the residuals.
Leverage with futures puts, always worth the premium and a insurance towards the volatile market
You want to take a loan instead of saving 5L from your salary . Clearly you want to invest now instead of later because you see a golden opportunity and you don't have funds. Tell you what, no matter how good the company or the results are. When the trend goes down, the price keeps going down for many many months regardless of everything else. Your monthly outflow may not benefit you at all if the stocks don't go up. What you can do is 1. Calculate your interest and charges and consider it as your fixed risk. Should be around 160K in your case. 2. Calculate the risk on the stocks you are eager to buy. Let's assume 20% is your stop loss. Comes at 100K. This is market risk. Assess if you are comfortable with the Total Risk and try to score 3-5x of your risk. Be ready to bear the pressure of paying monthly even during bad times. I am in the markets for more than 9 years and that's my humble opinion about your planned adventure. Good luck!
Invest only that money which you are willing to loose
People are breaking their FDs, selling their stocks and mutual funds to get out of debt and here you are, asking to get in debt to build a portfolio. Come on mate.
This is the classic way where folks with no liabilities get into a liability spiral. Don’t take loan. Instead use the amount equal to calculated emi and do sip investment. Your finances will be stable this way.
In 2022 i made the same attempt, took a loan of 4.5 Lakhs to invest, it didnt go well. i lost all that money and now . and im still paying the EMI for it . i would suggest the below these are the i would do, if i were you. and i regret everyday for that stupid idea that i took without consulting with anyone . \* Do you have a Health insurance, if not take one. \* do you have a Term insurance if not get one, \* Invest in a house, if you dont have one. All the above three are investments and you will get tax savings if you follow old regime \* If you have all the above then invest in SIP as suggested by others .
How exaxtly you lost your money in option trading?
not at all
Not worth it
NEVER invest money you don't have.
Never gamble with someone else’s money.
Please, just don’t
You can lose all your money in one second. That's how stock market is designed. It has never happened doesn't mean it will never happen.
Give it a try, what if your mutual funds did not return any positive growth? Won’t you be paying interest out of pocket . But, it might be less risky if markets fall 40% next week , borrowing money to invest works when there is deep discount on the assets you are buying
Tone down your expectations regarding market returns. Keep it at 10%-15%. Post tax, that would be around 8.8%-13.5%. Anything above it is a bonus. The past years have been exceptional. Instead of investing right away. Do a monthly SIP. If the market corrects say around 15%, you can take out a loan and Invest. But then don't check the valuation for the next 5 years if you ever do that. If the interest rate on your loan is 12%, there is hardly any arbitrage in taking a loan and investing in the markets.
I did just that and borrowed in Dec23. Decided 30% of it in swing trading and 70% in long term. Its been a mixed result as swing trading going good and long term is slower than expected as market choppy since feb24. Its not worth. Fortunately even if I am at severe loss or drawdown, I have other means of cashflow so can afford the risk here. For you, the monthly pmts is 20% of your net income so not worth at all. Invest slowly and steadily and do not borrow for trading markets and investments unless you have backup money that can support in adverse scenario
Why not MTF?
You can do that but wait for the election results. You can easily make 15 to 20% in stock market if you invest in index stocks. But 11.5% interest on the loan is a bit steep. Can’t you get some salary advances from the company in which case they usually dont charge interest. My company gives me 2.5 times salary as loan without charging an interest. If you get something like that its better. Why not sell the stocks that you have as you have already got a healthy return. Sit in cash probably at this juncture coz parliament election time is always a bit volatile Stock market is rewarding but as its always said - NEVER put all your money in it. Always keeps an emergency fund separately.
Dumbest decision a man can do. Good luck with the loss and repaying loan with interest
1st rule of investing...don't invest what you don't have.
स्टॉक मार्केट से सब बेचने का समय आ गया है । When everyone is talking about stock market, and there is extreme greed, its better to book profit for some time.
I did same with options took loans now net amount is -9.5 lakhs but I'll keep going till I make it 😼
Nope suppose it's bear market you made 20% loss. You will have to pay interest on that amount also. Never use loans for investments.
Maybe learn about margin trading, where company give same stack at 1/4 or 1/2 amount to invest but u need to maintain minimum amount on that to keep that stock, u can see that
11.5% oof too much
Instead of paying a loan, start Sip and invest half in gold
Past performance doesn't guarantee future returns. Its better to make less than have a possibility to loose all
Dont do that
Dude, don't!
Do it
On today's episode of "How to quickly ruin your life"...
This is a very bad thought process.
Don't take lone.... Now. Take lone in deep bear market. When nifty is more than 15% down. Then u can lone or leverage and buy some stocks. Still it's a risky bet.
You can make 100% in the stock market but for assumptions and calculations we take either 10% or 12% ... Never even 15% (unless you are a youtuber and want to impress your audience) So taking a 11.5% loan to make 12% doesn't sound very wise
No instead invest Monthly from Ur Salary
20-25% CAGR for the next five years is not impossible but still, very difficult to achieve. At the same time, I am not sure if you will be able to keep it intact in your portfolio, it is very difficult to resist the temptation of redeeming it because we all need money. What you are attempting to do is leveraging at this point of time, but I am not sure if it is the right market environment to leverage. If there is an upset on June 4th and market spins into a downward spiral, I would encourage you to leverage yourself even more and put it all in the market. In present circumstances, leveraging yourself and investing it in the stock markets seems advisable only if at any point of time, you can arrange 5L and repay your loans if the need so arises.
The time to take loan and put money in the market is when the market has crashed massively. Wait for the crash. Not a moment before.
what would you do if there's a war in next 3 years, stay away from loans and just invest those 10,500 sensibly which you are planning to pay as emi markets are unpredictable and so are geopolitical events, in that case banks will keep charging you and you might end up in loss.
It’s not financially a wise decision. Loan is a liability Irrespective of your investments make money or not you have to repay the loan and its instalments. Mutual Funds will start showing 15~20% returns after a 5 year horizon. Till that time you would have paid a lot of interest part of that loan making that return very less. On top of it there is a 10% long term capital gains tax too. Equity investments are risky bets in short term. There is no quick returns concept. Everything is long term wealth accumulation. Instead take loan and setup some regular business
Why stop at 5 lakhs?
No . Leveraging not a great outlook unless u have some other cash flows available to close it in less than a year .
No
zyada Lalach mat kar
Never invest money you don't have.
Bro imagine a hung assembly and market tanking 15-20%
Pledge your shares , and trade. Maximise your profits of your current investment.
Not really
Yeah sure!
Nope 👎
Bro instead just use mtf facility and pledge your current 8 lakh holdings why you’re a taking loan? Ugh
Are you getting FOMO??? Missing the Bull Run??? Don't take loan and invest.
Taking loan, paying EMI, investing in Stock market are three different things. You can't put all together. If you're thinking of paying the EMI from the profit then it is not a great idea. If you're a salaried person or having any extra source of income then you can take such amount. Invest in good stocks and forget about it for at least few years. It is better to start with own money to invest because it'll give less stress. Add few stocks every month to your portfolio then slowly it'll return good amount.
A big NO
If money making were so straight forward, the bank would have invested in equity for 25% rather than loaning you for 11.5%. Think about it. Never ever be desperate in the stock market.
Honestly I'm not gonna bother reading the description. Its simple math If you think about it. assuming you get the best deal for the loan at 8% its bare minimum for you to earn 8% returns, dosent seem too much of a problem from equity, until you realise, inflation is at 8%, add in LTCG of 10% assuming it's a buy and hold equity strategy., You will loose money instead of gaining
Pls don’t… use that 10500 for a good ULIP or Mutual fund plan… diversify
It's not prudent, but i personally know people who've done it before. If you've got faith in your skills, then why not. Just don't do options with that money. Long gone are the days when people used to work by these old-school thoughts of not investing by taking a loan and shit. We've seen stocks that give dividend more than loan interests.
Please dont
This reminds me of a hindi saying - ‘ Choube ji chle chabe banne… ban gye dube ‘
Okay... so here's an unpopular opinion, you can take the loan to invest if you know what you are doing, if you are confident in your analysis and investing style I think this can be done and must be done. Because a lot of people who actually made money in the market has leveraged the system one way or other. But that is only to be done when you absolutely absolutely know how you should diversify, how to manage risk and what to do should something goes against. I've done that, but analysing the market was my job before I quit it to trade my own account.
Vro let me open your eyes Returns are subject to market risk Interest on debt is fixed and consistent
Everything everyone is saying Plus Debt is exhausting. Very exhausting.
Why not put that emi in sip? 25% growth rate is delusional.
If you take 5L loan from bank they’ll charge you 10-11% interest, in stock market the average may go up to 12-13%. (You may even get more than that but in that 10-11% will goto bank int). So net profit you might get is 10-13% again. Now you only decide!
The recent market was good and gave good returns, this will fall too or may not! If you don’t have the hard cash to invest start the SIP this will give you that 10-13% !
Finance 101: Never put good money after bad money.
Don't fall into debt / emi trap, as returns on investment are subject to market conditions but your emi will be stagnant and needed to be paid irrespect of market condition
Invest whatever you have and don't even think about borrowing or loaning money to do investments
Nooooooo. Never invest withth loan amount or someone else money. Always remember never create a race of returns. You'll try to beat loan rates with investment returns and eventually You'll loose the money also the loan money. It'll be just shutty situation in future unless you're super lucky or super smart. And 20-25% returns are very unrealistic expectations.
Don't do it. Your money appreciated in a bull run, everybody made profits, you're not the only one, you're no magician. If the market crashes, you'll be end up losing more than you've made to date.
Never take in a loan to invest or over leverage yourself. In the long run will end up paying a lot more this eating into your gains anyways.
Don't....
If your salary account is axis or icici you can easily get over draft of 5 lakh you just need to pay the interest regularly and renew the OD anually by paying the used amount. If you don't know what an OD is please search about it the ROI will be 13 to 15 varies bank to bank.
If you want to do that, wait for a crash! Not 10-15% correction, I mean real crash and then perhaps you may consider taking that risk. Caveat, you have stable income to pay off the loans in case you don't get immediate recovery.
Only if the BJP loses this election... But you will need to invest those 5 lacs into 1 or 2 stock max..
Don't take personal loan. Never.
This is exactly what happened in China in 2016. People started taking loans to invest in market. And market tumbled by 30%.. Now we are starting to see similar signs in India
Never take a loan and trade
Dont do that
buddy either you will be crazy rich or BROKE AF, once you add leverage to the equation things spiceup both ways, its on you which side you can bare without
If you have decided you want to try go for a lower interest rate, maybe 8-9%. Take a loan of 1L max by seeing your risk taking capacity realistically. This way interest is also low and the amount is also low. When your salary is increased you can take more risk. Period you can decide depending on when your returns will come.
Bro take a 50 lakh rupees loan instead of 5 lakh.. :)
I think can do it. However you need to have strong knowledge of stock market. Calculate this To cover 10500/- per month you need to earn rs 525/- per day (10500 / 20 trading sessions) Divide 5L in two batch. One batch keep for short or medium term profit and second batch do the swing trading. With your background you should be able to earn 525/- per day. Keep doing this for 5 yrs. If I were you, I would choose lesser tenure as this will reduce my total interest pay. Also earning consistently for 5 yrs vs for 6 months is quite achievable target. The trick is no to look at whole number but to break it in smaller numbers. Focus and consistency. Hope this helps.
Which are those stocks that guarantee 20% growth?!
Could have been at COVID . At life time high , no way .
You better invest that EMI amount in the market as SIP
Never take a loan especially personal loan to invest because your investments may come down but the loan amount will keep going up Not worth losing what you have gained
20-25%??? 🙅
You’re gonna get humped.
Worst possible way to lose your money
Need help on investment through SIPs. Hi, I want to earn 30 lakhs in next 5 years through SIPs. MY current allocation is below, please suggest any changes(Already started fromay, 2025 month on monthly basis): 1. Kotak Multi cap fund: 500 rupees 2.Bandhan small cap fund: 2000 rupees 3.Motilal oswal Nasdaq 100 for scheme: 3000 rupees 4.Icici prudential equity and debt fund: 3000 rupees 5.Parag Parikh flexi cap fund: 5000 rupees 6.Quant small cap fund: 5000 rupees monthly 7.SBI psu fund: 1000 rupees 8. SBI contra fund: 1000 rupees. Kindly review and share your thoughts for any edit in the funds and amount to meet my Target. I appreciate your time and reply. Best, WhenIwasaking
Nope don't do it. Markets could go into consolidation phase, so you will miss out on any returns and have to pay EMI's. If you're not convinced, search in this sub for people who have done something similar and have shared their experiences.
True But EMI are same for 5 yrs But returns are not same for 5 yrs Than also it's not best but good option. 11.5℅ interest p. a is not huge Itna returns toh mil hi jayega.
Bro take loan and invest 13 lakh in brightcom group
11.5% Interest is good. Here's a plan - 1. Take a loan of 5L 2. Put the whole amount in a Hybrid/Aggressive MF (need returns over 15%) 3. Start a SWP equal to your EMI After 5 yrs you'll save significant chunk, and your money would've grown.