Hi , I am 43 yrs old , Rs 850 K PA, Engineering consultant, SAVING I)LIC Rs 50 K /PA (20 years , 11 years paid) , II) SBI PPF Rs 50 K/PA (15 years , 5 years paid) HOME LOAN Outstanding Rs 276 K , EMI Rs 11532 , 29 months left , CAR Loan completed last month. 2 KIDS 3 and 5 standard. Should I close my Home loan A/c ?
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There maybe prepayment penalty for closing the homeloan.Check if that is ok for closing the loan if you have excess money to spare.Also in your planning you have done nothing to beat inflation.If you have rs 10000 to spare monthly,join some good equity mutual funds by putting rs 2000 pm by way of sip(systematic investment plan) into 5 good funds like reliance growth fund,sundaram select focus,dspml balanced fund,tata infrastructure fund and principal tax saver fund.Continue in this funds for 3 years and accumulate the units.If you can do it directly via amc,you can save on entry load of 2.25%.That way you can beat inflation by getting a return of 25 to 30% in long run.