Taking loan against property and investing in Nifty 50, good idea?

[neha1101]

There is a similar topic created by another user. The concept is the same and many users have replied to this post.

Does it makes sense to take personal loan to invest in equities?

Does it makes sense to take personal loan to invest in equities?

Suppose if I take out a personal loan at 10% p.a. of say 10 lakh amount for 4 years with 2 years lock in period. My monthly emi would be around 25k. Let’s assume if I am able to meet that expense from salary and if I invest that 10 lakh in diversified portfolio with high treynor ratio that can get about 20 to 30% return p.a. with annual rebalancing. Then even if that portfolio fetches 20% pa for four years then it would result in around 7 to 8 lakhs profit. Does this makes sense or there is s…