I’m looking for some practical financial advice.
I currently have a ₹5,00,000 loan at 12% annual interest. I was considering investing this amount in the stock market while continuing to pay the EMI from my salary.
My thinking is that if markets perform well over the next few years, the investment could grow and potentially offset the loan cost over time through compounding.
However, I’m aware this approach carries risk, especially since returns are not guaranteed and the interest cost is fixed.
Would this be considered a reasonable strategy, or is it too risky? What factors should I consider before doing something like this?
Also, if someone were in a similar situation, what would be a more balanced or safer way to use this money?
Looking for honest opinions and experiences.