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How to differentiate between good debt and bad debt? Harsh Roongta explains

Harsh Roongta advises paying off expensive loans like credit cards or unsecured loans first. Fixed income bearing investments should be used before considering a top up loan on a home loan to pay that off. Fixed deposits can be used to repay loans through linked savings accounts for liquidity and high interest.

balanced advantage fund: Harsh Roongta on the top advantages and disadvantages of parking money in a balanced advantage fund

According to Harsh Roongta of Fee Only Investment Advisers LLP, a balanced advantage fund allows investors to have a measured exposure to equity without timing the market, reducing risk. These funds provide equity-like returns with lower risks compared to pure equity funds. The allocation between equity and debt is determined by a formula, making them counter cyclical.

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