Does it makes sense to take loan on FD and then invest in markets?

How many times are you going to ask same question multiple times in this forum?
Haven’t you already taken that loan?

Those two questions are different if you haven’t noticed.

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How does it matter what I think?

Till someone gives him the answer that he wants to hear.

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Its not directed specifically to you. Is it a crime to get second opinion?

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Lol … I already gave him the answer he wanted 15 days back

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Man. you already have 27 opinions on your previous question
Does it makes sense to take personal loan to invest in equities?

And you are still looking for second opinion?

15 days back you were looking at 20% to 30% return in equity easily. Now you are down to 15%. Couple of more months and I hope you will be closer to reality :slight_smile:

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The portfolio which I mentioned in that post is up 5% in less than 1 month and other backtested portfolios are up 30% in 6 month. I am keeping my expectations low to manage risk during black swan events like covid.

If people can’t achieve risk free rate + risk premium in any investment then their investment have failed.

A second opinion that matches exactly what I want to hear, is the only second opinion that counts. :slight_smile:

Edited to add: Come to think of it, all those 27 responses were expressing the same opinion, just said by different people. There was no real second opinion, you know, for the meaning of “second = different”. Now tell me, is it a crime to look for that other opinion till one finds it?

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Exactly that is what I am saying. I’ll repeat what I said 15 days ago:
You have all figured out already, and can easily make 30% a year (or is it 30% in 6 months?), then why are you waiting for forum members to confirm it?

Just go ahead take that personal loan / loan against FD, and put it in your back tested portfolio. (if it is 30% a year, better sell your home and put that money in it too)

Every day you are waiting for forum member to confirm your bias, you are loosing out on spectacular returns. Just go ahead man. Don’t wait for anyone else’s opinion.

As I said on previous post, in 4 years, Either you will be very rich or you will have a great experience in risk management

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Thank you for the sarcasm.

Sarcasm???
I am telling this in all sincerity, go ahead and take the loan.

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I think it is only the very last line of your advice which killed it for him:

If only it had been:

, it would have been perfect :grinning: .

Obviously not. You cannot be smarter than the stock market. Moreover, this is not possible.

If someone is so convinced then invest directly into market rather investing into fd and take loan against it. It is not wise at all

There are only 27 who have responded. And there are more like me who have the same opinion but don’t comment. I had earlier read the other post too and decided not to reply. Now I am little bored on a Saturday. :grin:

So now let me be 28th.

I have been in the market for 4 years now. On my capital invested I have made 39.2percent XIRR if I consider the value of my account as on yesterday.
This portfolio includes 30 percent of debt instruments. And we know debt instruments give lesser returns. Yet I am not tempted to redeem my debt instruments and divert it to fno and equity. Moreover I am eligible for loan easily but I havent taken any.
If I am beating benchmark indices I keep telling myself that I am due for a big fall. Nobody is smarter than the markets.
All that I am saying what all are saying is, investment should come out of your savings.
This is just an advice. I don’t think anybody over here is jealous of you to stop u from becoming rich.
Ultimately its your money. So your call.

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Simple answer is no.

There’s only one way to find out :wink:

always good to invest only spare money , See in market debt company no one will show interest to invest ,
taking a loan and investing in the market is an very bad idea , , DEBT is always bad for company and individual person , and a country also