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Investor uses 2 crore down payment and 8 crore mutual fund at 12 percent CAGR to fund 8 crore home loan at 8.5 percent, after 20 years owns house plus 10.5 crore fund
Can Mutual Funds Pay Your Home Loan? This Viral Strategy Shows How
A user’s smart strategy for buying a house with the help of a mutual fund, rather than a cash payment, has sparked amazement and curiosity among investors. This has led to successfully having a house after 20 years, along with mutual funds worth over Rs 10 crore.
It’s like having your cake and eating it too.
How did he do it?
According to an X post, the person didn’t buy the house of Rs 10 crore with a full cash payment.
He used Rs 2 crore as a down payment, while investing the rest of the amount, Rs 8 crore, in a mutual fund that offered a compound annual growth rate of 12 per cent.
He instead took Rs 8 crore home loan at the interest rate of 8.5 per cent, which translated into an EMI of Rs 7 lakh per month.
And then he started an SWP (Systematic Withdrawal Plan) of Rs 7,00,000 from mutual funds.
According to X post, the SWP paid every EMI for 20 years.
He kept this strategy for 20 years until loan on the house was paid. After 20 years, the person owned both the house and mutual fund worth Rs 10.5 crore.
The post reiterated the concept that people don’t just need to buy assets, but also letting their assets pay for other assets.
Don’t Work In Practicality
However, X users have raised doubts concerning that the strategy might not work in reality due to several variables, including the constant returns.
When one user asked Grok, X in-built AI bot, it objected to the issue of projection being used in the calculation. Grok said that the corpus would be at Rs 1.3 crore after 20 years at 12 per cent CAGR, not as projected at Rs 10.5 crore. Reaching Rs 10.5 crore needs 19 per cent sustained CAGR, it added.
Grok cautioned that the strategy works if equities deliver high returns consistently. “Downturns early could wipe the corpus while loan EMI continues,” it said, adding taxes and fund expenses reduce net.
April 06, 2026, 11:29 IST
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