New Delhi, Sept. 18 -- Imagine getting a large bonus that is big enough to completely pay off your home loan. Once the excitement fades, you face a tough choice: do you invest the money to grow your wealth, or use it to clear your debt and live stress-free?

On paper, investing often looks better. If your home loan interest rate is 7.5% and an investment could make 12%, the math says you will make more money by investing. But numbers don't tell the whole story. You have to choose between certain savings from paying off debt and the expectation of market-linked returns from an investment.

Paying off the loan gives you a guaranteed saving on your interest costs, while investing the money might deliver a higher return but comes with market ...