Safe Investment of funds planned for closing home loan

I have a fixed rate home loan @7.75% from StanChart. I have saved enough money to close the outstanding amount. However, some of my friends advised me not to close the loan.

What are the safe options for investing this money?

Additional info:
- money parked in the loan account will yield 7.75% and the amount earned can only be adjusted against the interest on principal outstanding

- Parking money in the loan account will reduce the interest component and increase the principal component in your emi. If I pay interest of 1.5 lakhs, I stand to save Rs. 50K on IT.

Please advise, should I close the loan? Or should I invest. If so what are the right options?

thanks and regards,

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