Should I borrow money from my wife instead of redeeming my mutual funds

My wife need to park some idle funds to the tune of 5-6 L, she is 42 year old & has a considerate risk taking ability with a said defined horizon of around 4-5 years can you advise me. I am being given to understand that market is awaiting a correction & therefore should I park these funds in some liquid Fund. Please advise? I have some already and going investment & presently in need of some amount around 5 Lac, should I withdraw it? Or Will it be more sensible to suffice my requirement by borrowing the amount from my wife. Please kindly advise?

Jul 16, 2017 by Yogesh Shirole, Pune | Mutual Fund

You have thrown a very interesting query to us. On a lighter note, should we discuss in public domain if you should borrow money from you wife or not :) Should it not be decided by two of you :))

On a serious note, redeeming your current investments as you need money OR borrowing money from your wife and not redeeming your investments is effectively the same thing. The reason being, if you do not borrow from her she will invest the same. It is only a matter of two transactions - one redemption and another a fresh investment. You can restrict it to one transaction - borrow from her and do not disturb your investments.

Yogesh, as you are a long term investor please discount the rumors or so called expert opinion that markets are awaiting correction. Stick to your long term goals and follow asset allocation based on your risk profile are two suggestions that we would like to give to you.

Thanks for writing to Advisorkhoj.

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