Archive · 1 Aug 2025
Edelweiss Exec: Smart Investing Beats Home Loan Prepayment
Imagine you get extra money, like a bonus.
Should you use it to pay off your house loan faster?
A financial expert says, maybe not!
He suggests looking at how your money can grow more.
You could pay less each month, or pay off the loan sooner.
The best move could be investing your bonus so it grows a lot over time.
If your investments earn more than your loan interest, it's smarter to invest!
This approach, called the 'Mango Money Rule,' helps your money work harder, possibly making you richer while your loan shrinks.
Edelweiss exec advises against blindly prepaying home loans with extra cash.
The exec suggests considering investment alternatives for potentially higher returns.
Four strategies for handling a bonus are outlined, including prepayment and investment.
Investing the bonus could yield the highest returns, provided loan payments continue.
The 'Mango Money Rule' encourages blending loan strategy with investment.
- Who
- Niranjan Avasthi, SVP at Edelweiss, provides advice.
- What
- Advice on managing extra cash by either prepaying home loans or investing.
- When
- Annually, when receiving extra cash like a bonus.
- Where
- LinkedIn post.
- Why
- To make the smartest financial choices, balancing debt reduction with wealth creation.
Benefits of Prepaying Home Loan
Benefits of Investing Bonus
Investment Strategy
Benefits of Prepaying Home Loan
Reduce EMI amount to save money over a long period
Benefits of Investing Bonus
Achieve higher return through investments. If your investment can earn more than your loan rate, invest, don’t prepay.
- Expert
- Niranjan Avasthi
- Organization
- Edelweiss Asset Management
- Loan Amount
- ₹50 lakh
- Loan Term
- 20 years remaining
- Bonus Amount
- ₹5 lakh
- Investment Return
- 12% CAGR