Recently a billboard advertisement caught the attention of many financial planners and mutual fund industry executives. The advertisement by Sobha Developers compared a monthly investment in mutual funds to equated monthly instalments (EMIs) towards a one-bedroom house. On the other side, Franklin Templeton Mutual Fund—in a blog—compared systematic investment plans (SIPs) in a mutual fund to a good EMI. Both SIPs and EMIs are regular payouts. But don’t get confused: a regular monthly investment can be called an instalment but a regular payment that services the interest on a loan, cannot be a substitute for investment.
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