Taking Loan to Invest in Mutual Funds
sundar last edited by ftForumAdmin
My knowledge about investing is close to nothing. Successfully ran a elearning business for the last 10 years, as my small business clients are out of business or reducing expenditure, I’m out of business.
I have some debts too. Now, I have a property( my last asset) on which I’m borrowing 20 lakhs for 11 month period.
Purpose: to start a small venture which gives me a decent return.
However, I require INR 5 lakhs to be invested on business now, and the business may require some pumping in for marketing and sales in later stages.
Could guys kindly advise where should I invest my remaining money of INR 15 lakhs (WHERE AND HOW). I’m considering mutual funds( as they provide decent returns and it doesn’t have a lockin period). Could you add an advice on how to vigilant in this present turbulent times too?
Monthly payout as interest for the amt borrowed will be 40k only.My business returns + mutual funds income = should take care of my monthly expenses( interest + my expenses) and growth.
As my business grows, then there shouldn’t be problem. Kindly suggest as I can’t afford to make mistakes at this juncture ( though my mindset is always ready to take calcuated risks).I look forward to your valuable suggestions.
jatinderchd last edited by
Hey,why are you borrowing money to plan investments.You might be paying a high interest on your loan, so the EMI (interest+principal) repayment shall increase your overall financial burden.
Taking loan for business seems fine.But,borrowing for investing in mutual funds, that too such a big amount seems a bit odd.Kindly,analyse different factors like interest paid on loan that has to be done on monthly basis.Also the, interest that you shall receive on investment is not sure(not fixed) and you can earn that only if you invest for longer duration.So,before taking any decision just check your risk horizon and needs.
If your business grows, you can anyways start investing regularly.