New Delhi, May 20 -- Rajiv has been saving Rs. 25,000 monthly in a SIP for five years, hoping to buy a flat. Meanwhile, his colleague Pragati opted for a housing loan from Bajaj Finserv last year and moved into her new home. While catching up during their lunch break one day, Rahul realises something startling. The flat prices in the neighbourhood he was eyeing have increased by 15% while his SIP grew only 10%.

Could saving longer with higher returns outpace rising home prices? The answer might surprise you. This article compares SIP growth against housing loan costs so you can decide which path leads faster to your dream home.

A systematic investment plan or SIP allows you to invest a fixed amount regularly in mutual funds. SIPs work t...