Buying your dream home is one of life’s biggest financial decisions. But
does it always have to start with locking up your money upfront? What
if you could flip the script — and turn your EMIs into a long-term
opportunity?
That’s exactly
what smart investors are doing today — using Systematic Withdrawal Plans
(SWP) to pay home loan EMIs, while letting their investments grow in
mutual funds. Here’s how this strategy works and why it could be a
game-changer for your financial future.
Traditional Route: Lump Sum Payment
Most home buyers save for years to make a large down payment and reduce the loan burden. For instance:
- House Cost: ₹60 lakh
- Down Payment: ₹60 lakh (fully paid upfront)
- Home Ownership: Immediate
- Growth on Capital: Zero (since it’s locked in the house)
The problem? The entire ₹60 lakh is now illiquid — no returns, no compounding, no flexibility.
Smarter Route: Invest, Loan & Grow Simultaneously
Instead of using your full ₹60 lakh to buy a house outright, consider this:
- Down Payment: ₹10 lakh
- Home Loan: ₹50 lakh
- EMI: ₹44,986/month for 20 years @ 9% interest
- Remaining ₹50 lakh: Invest in Mutual Funds
Now, use a Systematic Withdrawal Plan (SWP) to withdraw just enough every month to pay the EMI from your investment.
Over
20 years, your ₹50 lakh investment continues to grow in the market —
through a mix of liquid (6%), hybrid (9%), and equity (12%) funds.
The Outcome?
After 20 years:
You fully own the house
You've paid your EMIs
And, you may still have ₹80+ lakh in mutual fund value*
(*Estimates based on historical returns — actual results may vary)
Why This Works: The Power of Compounding
By
keeping your capital invested, you unlock the power of compounding.
Your money continues to work for you, even as you meet your monthly
obligations.
This
strategy is not about avoiding EMIs — it’s about making them work
smarter. By integrating SWP and mutual fund growth, you create a dual
engine for wealth creation and home ownership.
Is This Strategy Right for You?
This
plan isn't one-size-fits-all. It requires disciplined investing,
careful fund selection, and periodic portfolio reviews. But if you’re
looking for a smarter way to finance your home, while keeping your money
working — this strategy could be worth exploring.
Speak to a Relationship Manager Today
Nirmal
Bang Wealth Pvt Ltd offers in-house strategies tailored for different
risk appetites and financial goals. Speak to our experts to see how you
can make your EMIs an opportunity, not just an expense.
Let Your Money Work Smarter — Not Harder.
Hi, I’m Soumyajit.
For over 19 years, I’ve had the privilege of guiding more than 1,400 happy clients across Kolkata through the world of
insurance and financial planning. Whether it’s life and health insurance,
mutual funds, NCDs, or general coverage along with a claim settlement track
record that’s close to 100%—my goal has always been the same: to offer honest,
personalised advice you can trust.
If you're looking to
protect what matters most, secure your future, or grow your wealth with
confidence—I’m here for you, every step of the way. Let's connect
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