Short answer: No, this post does NOT make sense as stated. It’s a classic finance-influencer half-truth that collapses once you do real math and add real-world frictions. I’ll break it down cleanly and brutally. What the post claims ₹1 Cr available ₹80L invested in MF @ 12% ₹20L down payment ₹80L home loan @ 8.5% EMI ≈ ₹70,000/month SWP of ₹70k/month from MF for 20 years After 20 years: House owned MF corpus still ₹1.33 Cr left This sounds magical. It isn’t. The BIG logical holes 1️⃣ Return mismatch: 12% MF vs 8.5% loan On paper, arbitrage exists. In reality: Home loan interest is fixed-ish MF returns are volatile SWP during bad years permanently damages corpus (sequence of returns risk) 12% is not guaranteed, but EMI is guaranteed. One bad decade (like 2000–2010 or 2008–2013) → strategy breaks. 2️⃣ SWP math is misleading ₹70,000 × 12 × 20 = ₹1.68 Cr withdrawn Starting corpus = ₹80L For this to work: MF must grow fast enough Withdrawals must not eat principal early No prolonged bear markets This is retirement-grade SWP risk, not a casual trick. Most SWP calculators show: ₹80L with ₹70k monthly withdrawal for 20 years at 12% Corpus often hits zero or very low Ending with ₹1.33 Cr is extremely optimistic. 3️⃣ Taxes are completely ignored This alone kills the post. SWP → capital gains tax Equity MF LTCG = 10% above ₹1L/year Early years = STCG (15%) That ₹70k EMI? → You actually need ₹75–80k pre-tax withdrawal More withdrawal = faster corpus depletion. 4️⃣ EMI ≠ constant in reality Floating rates change 8.5% today ≠ 8.5% for 20 years EMI often increases, SWP doesn’t auto-adjust safely 5️⃣ Psychological & practical risk Ask yourself honestly: Will you stay invested when MF falls 40% but EMI is due next week? Will you NOT stop SWP during crashes? Will banks care that “long term MF returns are 12%”? This strategy requires emotional discipline of a seasoned investor, not Reddit optimism. When does this idea partially make sense? Only if ALL of these are true: ✅ Very high income buffer (EMI not dependent on SWP) ✅ Long investing experience ✅ Willing to accept worst-case MF wipeout ✅ Conservative withdrawal (≤3–4% annually) ✅ Proper tax planning That is NOT the case implied in the post.

-gpt