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By:

C.S. Krishnamurthy

21 June 2025 at 7:45:51 pm

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have...

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have to choose between repaying the loan faster and investing for the future? What if both could be pursued simultaneously? Could a Systematic Investment Plan (SIP) create a corpus that eventually helps reduce or even close the home loan? The idea merits consideration. A SIP is not a magic formula for becoming debt-free, but it can create a second financial track alongside the regular EMI. Two tracks, one objective Consider an illustration. Suppose a borrower takes a home loan of ₹50 lakh at an assumed interest rate of 8.5 pc for 20 years. The EMI would be around ₹43,400.
Instead of putting every available rupee into the loan, the borrower could consider investing ₹10,000 a month through a SIP, provided the household cash flow permits it. At an assumed annualised return of 12 pc, a ₹10,000 monthly SIP could grow to roughly ₹8.24 lakh in five years, ₹23.23 lakh in 10 years, ₹32.22 lakh in 12 years and ₹50.45 lakh in 15 years. While these are not guaranteed returns, the possibility of higher returns is also not ruled out. Meanwhile, the outstanding home loan would gradually decline through EMIs. Over eight to 10 years, the SIP corpus could become substantial enough to give the borrower an additional financial option. The important point is not to decide today exactly when the loan will be closed, but to review the position when the time comes. Why not simply prepay? Prepaying the home loan provides a relatively certain benefit because every rupee of principal repaid reduces future interest outgo, subject to the loan terms and applicable rules. The SIP serves a different purpose. It creates a financial asset and, over the long term, gives the investor an opportunity to participate in the growth potential of financial markets. The decision point comes later The strategy need not have a fixed finish line. After eight to 10 years, the borrower can review the situation rather than mechanically redeeming the SIP. What is the outstanding loan, the investment value and its performance? What are the prevailing market conditions? Is part-prepayment more appropriate than full repayment? These questions can guide the decision. If the corpus has grown sufficiently and circumstances are favourable, the borrower may consider using part of it to reduce the outstanding loan or, if appropriate, redeeming enough to close the loan completely. If the investment is better retained for the long term, there is no compulsion to exit merely because 10 years have passed. The strength of the strategy lies in this flexibility. Think beyond the loan A long-term SIP is not merely a future home-loan repayment fund. It can become a wealth-creation vehicle in its own right. Compounding rewards patience. A disciplined monthly investment held for the long term can help build a corpus for retirement, children’s education, other life goals or financial independence. Thus, while the home loan moves towards closure through the EMI, the investment has the opportunity to grow alongside it. Once the loan is eventually closed, the EMI disappears. Instead of allowing that money to quietly disappear into lifestyle expenses, the borrower can redirect some or all of the former EMI towards investments. A sensible balance This approach is not a universal prescription. Some borrowers may prefer aggressive loan prepayment, while others may find the combination of EMI and SIP more suitable. The SIP amount should also be comfortable. If ₹10,000 strains the monthly budget, start with less. The strategy should strengthen financial security, not create financial pressure. Adequate emergency savings and appropriate insurance should also form part of the overall financial plan. The larger lesson is simple: a home loan need not automatically put wealth creation on hold. With disciplined cash-flow management, a long-term investment approach and periodic reviews, the EMI can continue paying for today’s home while the SIP works towards tomorrow’s financial freedom. In the end, the question need not be, “Loan or investment?” It can be: “How can I use both wisely?” Disclaimer: “Mutual funds are subject to market risks. Read all scheme-related documents carefully.” (The writer is a retired banker and author. Views personal.)

Justice When Convenient, Principles When Profitable

6 hours ago
3 min read

From Nagavalli-style theatrics to selective outrage, the Cockroach Janata Party (CJP) seem determined to turn constitutional protest into an ideological dance-off.

 

Many of us have watched Apthamitra or Akshay Kumar’s Bhool Bhulaiyaa, where Ganga slowly transforms into the formidable Nagavalli. Well, it appears our CJP protestors are undergoing a transformation of their own! Like Nagavalli lifting a bed to demonstrate her supernatural strength, these Convenient Justice Pleaders have lifted their legs and taken to the streets for a marathon in the name of democracy. And they simply refuse to stop. What tireless runners, these champions of convenience, sprinting along the capital’s roads as though a newly spotted car were an irresistible invitation for a street dog to mark its territory.


Their ever-enthusiastic fellow travellers cheer them on, day and night: “Hu ha! Hu ha!” What spectacle, what solidarity, what entertainment! Nagavalli, darling, you have competition!


Like Nagavalli, who dances tirelessly for her soulmate, our CJP protestors seem equally tireless in their own choreography - a soul-selling performance, desperately soliciting regime change. Nagavalli summoned Ramanathan; these performers appear to be summoning the entire system - the judiciary, legislature, and executive - to witness their grand spectacle. And surely, no performance is complete without an international audience! Perhaps they await Elon Musk, George Soros, Marxists, communists, and the imagined architects of the anti-India deep state to witness their extraordinary expertise. What dedication, what drama! Nagavalli danced for her soulmate; these Convenient Justice Pleaders dance for regime change.


Disco Democracy

In Apthamitra, Nagavalli’s dance was enough to frighten everyone around her. Our CJP dancers, however, appear determined to make the entire constitutional machinery break into a nervous sweat. And what a grand Avahana for their maiden performance—not from a fellow dancer, but from the police themselves, who reportedly went all the way to the airport to facilitate their entry into the capital. Yet, when it came to the sequel, the ghungroos encountered a little trouble. Their steps were restricted beyond Jantar Mantar. From an airport welcome to a designated stage, what a dramatic change in choreography.


Nagavalli summoned her soulmate; our Convenient Justice Pleaders, meanwhile, appear to have summoned an entire army of uncritical cheerleaders to applaud their every step. From the first act’s grand welcome to the second act’s restricted stage, the choreography has changed, but the chorus remains the same.


In the maiden performance, our star dancer Neha Bora seemingly stole the show from the organisers themselves! The patriarchal performers—Abhijeet Dipke, Ashutosh Ranka, and Sourav Das—could hardly compete with the street-theatre energy of their leading lady. Alas, even the most energetic choreography can become boring when the same steps are repeated endlessly. But Neha refuses to lower the curtain. Inspired, perhaps, by fellow performers in Bangla and France, she has apparently decided to add a skull to the props.


One wonders whether this endless performance is meant to fill the audience’s heads with ideas—or merely demonstrate how much empty space a skull can accommodate. Wah wah, Neha ji! The ghungroos keep jingling, even when the script begs for an interval.


After the grand success of their first performance, our dancers went on to perform their next act: School Theek Karo! But it seems the people of Rajasthan showed them a mirror and asked them, “Pehle khud ke skull theek karo!” And like Nagavalli, who was rather choosy about her soulmate, our CJP dancers are equally choosy about their stages. They perform with extraordinary enthusiasm, lifting their legs and displaying their full choreography in BJP-ruled states, while seemingly covering their steps in states ruled by the AAP, Congress, and others.


Even Ganga knew when Nagavalli had taken over her soul, yet continued to conceal the truth. Our CJP dancers, too, seem adept at greeting inconvenient truths with convenient denials! Dipke Bhai’s Delhi performance reportedly featured police assistance, a chair beside the police, and later denials.


Ideological Ballet

Neha Bora’s Jink Chak, Jink Chak deserves its own fact-check. Were Bangla’s dancers protesting religious fundamentalism or fighting over reservations? And who directs this ideological ballet? Prakash Raj, the alleged choreographer? With Bhushana—the latest ornament—joining the troupe, the ensemble grows grander. Now the dancers openly explain why they lift their legs: apparently, they want everyone to see what lies within.


The stench of this endless performance is becoming impossible to ignore. How long must constitutional institutions hold their noses? We Bharatiyas will not applaud street theatrics masquerading as justice while undermining an elected system. If these dancers seek ideological soulmates, let them reunite with their fellow performers in Bangladesh or France. I urge the authorities to investigate their intentions through lawful scrutiny. Just as exorcism drives away evil spirits, constitutional vigilance must expose deception through evidence and due process. Democracy is no dance floor for those who would undermine its foundations. No encore without accountability.


(The writer is a Bengaluru-based author and scholar. Views personal.)

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