Got Diwali bonus from your employer? Clear credit card dues or start mutual fund SIP: Which money move is right for you?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓If you got a ₹10,000 Diwali bonus, you should clear credit card dues before starting a mutual fund SIP.
- ✓Vedant Gupte said, "Card interest can run upwards of 36% a year, a rate no mutual fund reliably beats." Clearing high-interest debt is a smart way to reset your personal finances.
Story at a Glance
- Category
- Indian Markets
- Reported By
- mint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Got a Diwali bonus of ₹10,000? Should you clear credit card dues or start a mutual fund SIP? Compare the interest savings from repaying high-cost debt with the potential returns from investing to understand which money move makes more financial sense.
Have you received a Diwali bonus of ₹10,000 from your employer? Before spending the festive windfall, consider whether you should use it to clear outstanding credit card dues or start a mutual fund systematic investment plan (SIP) to build long-term wealth.
Here's what an expert suggests and how the numbers compare for each option.
Why should clearing credit card dues come first?
Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said Diwali bonus is a rare chance to reset your finances, and the smartest first move is almost always clearing any revolving credit card balance.
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