Would you advise taking a personal loan for investing in stocks and mutual funds?

Live answers to your investment queries.

[ManasBaaggh]

theres a right way to do it. and rich people do it all the time.

[vaibhavrevandkar]

This can be done.

The current personal loan interest rate is 10.50%.

We can easily generate between 100% to 150% in safe large cap stocks over a course of 5 years.

Risk worth taking.

[jeetpatnaik]

what about borrow a small of loan say 5 lacs and invest in the index fund for 20 yrs still it is a risky proposition. 5 lac loan in 5 yrs term u will end up paying around 6.5 lac with interest but 20 yrs the amount will grow to 90 lack so a net profit will be around 85 lack. at least we can expect a decent 15% compound interest on indian market in a long run of 20 yrs. so what's a harm and risk involved????pls explain

[Aayush]

Look these experts cant advice you such technique in open platform..although it is not a bad bad way to earn money.all u need is research..MF are rarely in loss they can give u return in one month what bank will give charge u for loan PA

[Sobitsaid]

If my primary goal is dividend then whether the market goes down or up, what's matter here? If a company I'm investing in has a recurring track record of dividend payout, then chances are we can leverage that money for repayment. Taking loan without planning would be a risk but If you plan repayments having a job and budget then this might be a source of income. I might be talking nonsense here as I'm not expert but this is what I think sometimes.

[abhishekagarwal]

How about if you know that the stock has corrected by 40% and looking at the fundamentals it will again come back to 40% value that was lost. And at that time if you dont have the Money then Personal loan is the best thing one can go with

[nagarajgb]

And also income tax on short term gains also additional burden

[andyk]

You shouldn't assume a so called speculator is going to lose everything. A bad one will. You're obviously withholding a lot of information

[GautomDutta-fjwd]

Loan interest applies on reducing rate of interest where as equity compounds so I don't understand how it's high risky
If one knows then I think it this best way to make easy moneh

[pradeepkedar]

I should have not taken ur advice 4 years back 😢 .My friends took loan and bought the property which is 2 times now. Am sitting with same small 20k investment

[villages]

I work in mutual funds industry. Don't take loan and invest. The market has no logic. I will openly tell you that it rises and falls based on 100% mood and 0% logic. Its like one bird flies and the rest of the flock flies off with it.

[scorpian]

Dhirendra himself has no trust on stocks and mutual funds.

[jeetpatnaik]

Sir what if taking loan of 10 lakh and invest that money in MF for 20 years? still bad

[themathmute]

Rich people never tell you right thing.