Sunday, 20 May 2012


Quit smoking and get a Hyundai EON!

Many of us spend over Rs.100 per day on smoking and other forms of addictions.
If we could give this up and start investing in mutual funds by way of Systematic Investment Plan (SIP) this amount of Rs.3,000/- per month would grow to Rs. 1,37,038/- assuming the equity mutual fund schemes generate 15% CAGR for the next 3 years.

The on-road price of a Hyundai EON today is approximately Rs.2,77,273/-

Assuming the car price would increase by 4% every year, the car would cost Rs. 3,11,894/- after 3 years.


At this point in time withdraw the investment amount of Rs. 1,37,038/- and use this for the down-payment for the car.
Then the amount of loan to be availed from the bank will be Rs.1,74,856/-
Assuming the rate of interest to be 11% on reducing balance method for the car loan the EMI for 60 months will be Rs. 3,802/- per month.


Assuming your savings go up by 9% every year you could pay the EMI of Rs. 3,802/- instead of the SIP of Rs.3,000/- per month with no additional burden as your savings potential under this head would be Rs.3,885/- per month.


Stop the SIP and use the amount to pay this EMI.
There you go! The EON is yours and you are also healthy!
Simple isn’t it?

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