Can you take out a loan to invest in the stock market
If possible invest the entire corpus can be into to a liquid fund generating 8% return and take even money out every-moth and invest in any one or two of the stock in your list. Once you have booked profits in any stock, you can wait for its fall to invest again or research another stock. But there also are significant disadvantages, according to MacKenzie. One is the very fact that a 401(k) loan can be so easy to take out, encouraging borrowing that you otherwise should avoid.