Loan repayment vs Lumpsum mutual fund

The same rupee. Two different roads.

Put a lump sum to work in a mutual fund and let it compound
Borrow the same amount instead, and you repay it - with interest on top
Every field is editable - change the amount, rate or years on either side

Yield earned vs interest paid - the net gap

₹28.73 L

Investing the amount leaves you about 3.5× ahead of borrowing the same and repaying it.

Put the money to work

Lumpsum Mutual Fund

Amount invested (₹)

Expected return % (CAGR)

Years

Invested₹5,00,000
Lumpsum + SIP at year 5₹0
SIP grows to, year 20₹0
Wealth gained₹35.31 L

Grows to₹40.31 Labout 8.1× your money

Borrow the same amount

Loan Repayment

Loan amount (₹)

Interest rate % p.a.

Tenure (years)

EMI / month₹4,825
Total repaid₹11.58 L

Interest paid₹6.58 Lon top of the ₹5.00 L borrowed

A deeper question

Buy now or wait & pay later?

Buy today with a loan, or defer the purchase?

The loan is on the table either way - the only real question is when you buy. Every field below is editable; the percentages in brackets are editable too.

Asset type

Asset price today

₹

Down payment

₹(%)

Loan - the rest

₹7,50,000(50%)

Loan interest % p.a.

Loan tenure (yrs)

Planned investment - the freed-up cash you invest instead

₹(% of loan)

Investment return % (CAGR)

Asset inflation % p.a.

Defer period (yrs)

Defer period drives the asset inflation only.

Structured Product vs Endowment plan

Same premium. Two different endings.

An endowment bundles your cover with a low-return savings plan
Split the same money into pure term cover plus a mutual-fund SIP
Same protection, a dramatically bigger corpus

The life cover you have (or want)

₹

Your age

Endowment premium for this cover: ₹80,293 / month (₹9.64 L / year)
That is the budget we restructure into term + SIP

Your age at start

32

SIP return (CAGR)

15%

Endowment maturity age

67

Extra corpus by age 80 • same cover, same outlay

₹60.11 Cr

Term + SIP leaves you about 16.8× more than the endowment policy.

What most people already have

Endowment Life Insurance

One product for both cover and savings
A guaranteed-style return that barely outpaces inflation

Premium / month₹80,293
Total premiums paid₹3.45 Cr
Life cover₹1 Cr
Matures at age67

Maturity benefit₹3.80 Crafter paying ₹3.45 Cr in premiums

The structured alternative

Term Insurance + Mutual Fund SIP

Buy the same cover as cheap term insurance
Invest everything left over in a disciplined SIP

Life cover (pure term)₹1 Cr • same
Term premium / month₹8,029
Premium paying term20 years
Total term premiums paid₹3.37 Cr
Into SIP / month₹72,264
Total invested₹3.04 Cr
Investment horizon35 years
Assumed CAGR (net)14%

Projected corpus*₹63.91 Crfor the same ₹1 Cr of cover

How the two grow apart

EndowmentTerm + SIP

Assumptions & disclosures

Black Numbers Law · AMFI-registered Mutual Fund Distributor · ARN-342488

Structured Product vs Money-back income plan

Same money in. A rising income for life.

A money-back plan pays a fixed income that never grows
Split the same money into pure term cover plus a mutual-fund SIP
A rising income for life, instead of a flat one

What you can invest each month

₹

Your age

Estimated pure life cover₹29 Lfrom ₹1,500 / month at age 45

Structured product return (CAGR)

15%

Money-back plan CAGR

12%

Term premium paying years

20

Plan runs until age

100

Your age at start

32

Your income from age 60 • rising every 5 years, for life

Starting at about 4.1× the money-back plan's flat income, for life.

The plan you're offered

Money-back Income Plan

A fixed lifelong income, plus a one-time bonus at maturity
Income stays flat while your expenses keep rising

Life cover₹22 L
You invest₹27.0 L
Total income received₹69.2 L
Maturity bonus₹2.39 Cr
Lifetime "you get"₹3.08 Cr

Income / year • flat forever₹1.73 Lfor 40 years, then ₹2.39 Cr at age 100

The structured alternative

Term + SIP, then step-up SWP

10% buys real cover, 90% compounds in a SIP
Withdraw 8% a year, stepping up 25% every five years, for life

10% • Term insurance

₹1,500 / mo

90% • Mutual fund SIP

₹13,500 / mo

SIP contributions run for 15 years
Term premium payable for 20 years, cover active to age 65
Withdrawals begin at age 60

Life cover (pure term)₹29 L
Premium paying term20 years
Corpus at age 60₹0.90 Cr
Total income drawn₹7.89 Cr
Corpus left at 100*₹99.7 Cr
Assumed return15%

Starting SWP income / year₹6.58 Lrises 25% every 5 years, for life

Income, five years at a time

Their income never moves
Yours steps up 25% every five years, while the corpus keeps compounding underneath

Age band	Money-back plan	Step-up SWP

Your corpus keeps climbing • even as you withdraw more

Money-back maturitySWP corpus