Imagine a seasoned traveler preparing for a long journey. She fills her backpack carefully, ensuring she has the right mix of essentials – food, water, clothes, maps, etc. Similarly, investing ₹80 lakhs to generate a steady, risk-free monthly income requires a careful selection of financial tools.
The “risk-free” part of your query narrows down the options significantly. In India, risk-free or low-risk investments typically refer to fixed-income instruments that provide guaranteed returns. Here are a few avenues that can offer such returns:
- Bank Fixed Deposits (FDs): FDs are considered one of the safest investment avenues. As of 2023, the interest rates on FDs range between 5-7% per annum for different banks. These provide interest monthly, quarterly, or annually as per your requirement.
- Senior Citizens Savings Scheme (SCSS): If you’re a senior citizen (above 60 years), SCSS could be a beneficial option. It currently offers an interest rate of around 7.4% p.a., payable quarterly.
- Post Office Monthly Income Scheme (POMIS): POMIS is another secure investment, offering around 6.6% p.a. However, it has a maximum investment limit of ₹4.5 lakhs per individual.
- Pradhan Mantri Vaya Vandana Yojana (PMVVY): A pension scheme managed by LIC, suitable for senior citizens, offering a 7.4% p.a. return. The maximum investment limit here is ₹15 lakhs.
- Annuity Plans: While the returns are typically lower (5-6% p.a.), the primary advantage is a lifelong income guarantee. Also, you can start receiving payouts immediately.
Let’s consider a balanced mix of the above instruments to maximise returns while adhering to individual investment limits. This is an example only and you must talk to a SEBI Registered Investment Advisor for actual advice:
- Invest ₹15 lakhs in PMVVY: At a 7.4% annual interest, this would yield ₹1.11 lakhs per annum or approximately ₹9250 per month.
- Invest ₹15 lakhs in SCSS: At a 7.4% annual interest, this would yield another ₹1.11 lakhs per annum or ₹9250 per month.
- Deposit ₹30 lakhs in FDs: Assuming an average interest rate of 6% p.a., this would give ₹1.8 lakhs per annum or ₹15,000 per month.
- Put ₹4.5 lakhs in POMIS: At 6.6% p.a., this would provide ₹29,700 per annum or about ₹2475 per month.
- Purchase an annuity plan with the remaining ₹15.5 lakhs. Assuming a return rate of 6% p.a., it would yield ₹93,000 per annum or approximately ₹7750 per month.
This diversified approach would yield around ₹39,725 per month. The exact amount might vary based on the prevailing interest rates and specific plan details.
While it’s important to focus on return, do not ignore the tax implications. Interest income from these sources is generally taxable based on your income tax slab.
In conclusion, think of your investment as a well-packed backpack for a long journey. An experienced guide, like a SEBI Registered Investment Advisor, can help you pack the most efficient backpack, maximizing returns while maintaining the risk level within your comfort zone.
