Hey guys my two cents,
i think one should secure a home first ( maybe 2 or 3) before investing in stocks.
Here is my logic
Home loan rates are @9.5% on an average. What is important to understand that property is the only asset class where a bank gives you a loan worth 4 to 5 times the down payment . So with a down payment of 10L you can immediately buy a property worth 50L. The interest on this is a REDUCING BALANCE interest. The final COMPOUNDED interest over a 25 year period that you would end up paying is no more than 4% on a 9.5% reducing balance. If your earning power is expected to stay the same or increase over 25 years buying property is a great way to accumulate wealth. All this applies of course if you take a home loan & service the EMIs regularly.
Here are the calculations
Interest rate : 9.5%
No of months for which loan taken = 300 mths
Loan value = 40L
EMI per month = Rs 34,947.87
Total amount you pay over 25 years = Rs 1,04,84,359.93 ( 34947.87 X 300mths )
Interest you pay = Rs 64,84,359.93 ( 10484359-40,00,000)
Compounded Interest = 3.93% ( over a 25 yr period)
As long as your home appreciates by more than 4% every year ( which is almost certain to happen ), it is a great investment ( even if technically since you are going to stay there you cant consider it as one)
I would recommend to liquidate the portfolio & invest in a home first.