Should I invest bank OD amount into mutual funds

Theoretically, your plan sounds good as you have compared the OD interest rates which may be lower compared to the future gain that you could make by investing in equity mutual funds. But coming to the practical aspect of it, please note that any OD amount or loan amount cannot be invested in market securities or shares or into any speculative investments. I am sure, if you read the fine print of the OD document you will notice this. To the best of our knowledge, the banking laws does not allow this. Therefore, if you invest the OD amount into mutual funds that might not be treated as appropriate!

As you have taken sufficient life cover through term plans, the idea of surrendering the traditional insurance plan is right. You can rather deploy this money in enhancing your monthly SIP investment amount

At age 41, you have a good PPF corpus and it is good from the diversification point of view.

If you continue your monthly SIP of Rs 60,000, you can get a decent corpus over long term. However, we feel that you should link your SIP investments with some of your long term financial goals. You have not yet started your retirement planning and your kids are already 11 years old, therefore, this is high time you should plan for goals like higher education of your children and their marriage etc. SIP can be a big enabler in chasing these goals but first you should know what is the retirement and other goal corpuses and then only you know if your current savings are enough to meet these financial goals?

Do share your thoughts. Thanks for writing to Advisorkhoj.