Buying a ₹3 lakh iPhone every 3 years? Know the monthly SIP you need, resale benefit and when EMI makes sense

If you regularly upgrade to an expensive smartphone every two or three years, it may be worth treating the purchase as a separate financial goal instead of dipping into your regular savings or investments.

A dedicated “phone-upgrade fund” allows you to set aside a fixed amount each month, spread the cost over time, and avoid a sudden financial strain when it is time to buy a new phone.

How much should you invest every month?

According to Apple.com, the iPhone Duo starts at ₹2,99,900 in India for the 256GB model. The 512GB version costs ₹3,24,900, while the 1TB and 2TB variants are priced at ₹3,74,900 and ₹4,49,900, respectively.

If you want to buy the phone after three years and assume that its price remains unchanged, the monthly amount you need to invest will depend on the phone's price and the return generated by your investment.

For illustration, assuming an 8% annual return:

• ₹2,99,900 iPhone: You need to do a monthly SIP of about ₹7,398 for three years. Your total investment would be about ₹2.66 lakh, with the balance coming from investment returns.
• ₹4,49,900 iPhone: Monthly SIP of about ₹11,099 for three years. Your total investment would be about ₹4 lakh.

The actual SIP requirement will change depending on the goal amount, investment period, and return assumption.

Which mutual fund should you invest in?

“The objective here is not to maximise returns; it is to have the required money available when you want to make the purchase. For such a short-term discretionary goal, choose relatively low-risk and liquid options rather than taking significant equity-market risk,” said Prasenjit Paul, Equity Research Analyst at Paul Asset & Fund Manager at 129 Wealth Fund.

Depending on the investor, Paul noted that this could mean a recurring deposit, a liquid fund, or another suitable short-duration debt-oriented option.

Can your old phone's resale value reduce the SIP burden?

Yes. If you expect to sell your existing phone when upgrading, its estimated resale value can be deducted from the future purchase price.

For example, if you plan to buy the ₹2,99,900 phone and expect to receive ₹40,000 by selling your old device, your effective goal becomes ₹2,59,900.

At an assumed 8% annual return over three years:

• Revised goal: ₹2.60 lakh
• Monthly SIP: about ₹6,412
• Total amount invested: about ₹2.31 lakh

This shows how planning for the resale value can reduce the monthly savings requirement.

Should you buy the phone on EMI or invest for it?

“A premium phone is a lifestyle purchase, and if you already know that you upgrade every two or three years, it can be treated like any other short-term financial goal,” said Paul.

Setting aside a fixed amount every month ensures that the purchase does not suddenly compete with your regular SIPs, emergency fund, or other financial commitments when it is time to upgrade, he added.

Taking an EMI can make sense if you already have enough money to buy the phone outright but prefer to spread the payment because of a genuine no-cost EMI offer or to retain liquidity. However, consumers should check the processing fees and taxes, and whether choosing the EMI means losing out on an upfront discount, Paul noted.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.