Navigating the space of investments can sometimes feel like walking through a bustling bazaar. Each stall, each vendor promising the best returns, the best experiences. Yet, just as you’d choose spices from a merchant whose flavors have stood the test of time, the world of investments too asks for a similar discernment.
Think of your savings as a fragrant biryani. The base, or the rice, is the liquidity you need. This is your emergency fund, your soon-to-be-used money. It’s crucial, but it’s not what gives the biryani its essence. Next comes the safety layer – the vegetables. This is where you put the bulk of your investment to ensure it grows steadily and safely. Lastly, you sprinkle the spices, the growth potential, which while used in moderation, truly determines the flavor of your dish.
To achieve a monthly income of about 50K from an investment of 40 Lakhs, you’re targeting an annual return of about 15%. While not impossible, it does require a blend of both the safety of debt and the growth potential of equities. With the Roots and Wings philosophy, you can judiciously allocate your funds. Roots, the strong foundational companies with low debt and high return on equity, provide the stability your portfolio needs. On the other hand, Wings, the high-fliers with consistent revenue and profit growth, offer the growth prospects.
A good way to start:
- Fixed Income: Deploy a significant portion into debt funds. They offer better post-tax returns than fixed deposits and are safer than pure equity. It adheres to the safety in our LSG framework of Jama Wealth.
- Equities: Put a portion into equity mutual funds or direct stocks using the Roots and Wings philosophy. This seeks the growth potential.
- Dividend Yielding Stocks: These could be your monthly income providers. There are companies that regularly give dividends which can act as a passive income source.
As Warren Buffett said, “Do not put all eggs in one basket”. Diversify, but be aware of where each egg is.
Now, making these choices might feel overwhelming, and that’s where professional guidance comes in. If you need a trusted advisor, consider Jama Wealth. Our expert investment advisory and tailored portfolio management services (PMS) will ensure your biryani is not just flavorful but also nourishing.
To sum up, it’s essential to keep a blend of safety and growth while seeking monthly returns. The key is to balance both, just like the perfect biryani. Remember what Rakesh Jhunjhunwala, one of India’s leading investors, often says, “The stock market is a device for transferring money from the impatient to the patient.”
