Skip to main content

EMI vs SIP: Know which one of the two is a better bet

5 THINGS TO KEEP IN MIND

1) The SIP option does not work for all assets, only discretionary purchases. It does not make sense to wait for 6-9 months to buy a fridge or a laptop.

2) The EMI option is costlier, but you also get to use the asset immediately. It is better to buy certain items, such as a treadmill or your first car, when you need it.

3) The SIP approach has not taken inflation or taxation into account. Certain items, such as cars or gadgets, could become costlier if you wait for 1-2 years.

4) Some expenses, such as the fees for an MBA, cannot be postponed. The SIP option can work only if you plan well and start saving 2-3 years in advance.

5) EMIs have been calculated on the base amount. There could be additional charges. However, the self-employed can cl ..


Source : http://economictimes.indiatimes.com/wealth/savings-centre/analysis/emi-vs-sip-know-which-one-of-the-two-is-a-better-bet/articleshow/41857848.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Comments

Post a Comment

Popular posts from this blog

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what  I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...
2 comments
Read more
LIC IPO Shorts  The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM  
Post a Comment
Read more
  NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...
Post a Comment
Read more