EMI vs SIP - Which is best for you ?
EMI vs SIP - Which is best for you ? Suppose, i want to buy a beautiful Smart Phone. It costs around Rs. 16,000/- in the Market. The Smart phone have the various features, but the money on my hand is a little less to buy it now. Otherwise, i have to wait for my next month paycheck. Impulsive buying is a Character, it tempts to buy the Smart phone immediately. At that moment of thinking, there is an advertisement related on Smart phone. Yes, Lucky advertising. There is an offer comes by the Advertisement for the Smart phone, which i was intended to buy. What a Surprise ! I can pay just Rs. 1,000/- as an upfront payment and can take it to home. I can pay the rest of it through Monthly installment - Absolutely with Equated Monthly Installment (EMI). EMI (Equated Monthly Installment): As per Investopedia website, It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to payoff both interest and principal each month, so that over a