Investing ₹75 lakhs to generate regular monthly income requires synchronising different financial instruments. Here’s how you might tune your financial orchestra, considering different instruments for diverse yet balanced investment:
- Bank Fixed Deposits (FDs): These are one of the most straightforward and safest investment tools available. As of 2023, FD interest rates range between 5-7% p.a. You can choose a monthly interest payout option.
- Senior Citizens Savings Scheme (SCSS): If you’re above 60 years, this scheme could offer an interest rate of approximately 7.4% p.a., payable quarterly. The maximum investment limit is ₹15 lakhs.
- Post Office Monthly Income Scheme (POMIS): With a maximum limit of ₹4.5 lakhs per individual, POMIS provides around a 6.6% p.a. return.
- Pradhan Mantri Vaya Vandana Yojana (PMVVY): This pension scheme, managed by LIC and suitable for senior citizens, provides a 7.4% p.a. return. The maximum limit is ₹15 lakhs.
- Debt Mutual Funds: These funds primarily invest in fixed-income securities like corporate bonds, government securities, and treasury bills. They typically offer higher returns than FDs, with some level of risk.
- Rental Real Estate: Real estate can provide a steady income, but the returns would depend on location, property type, and other factors. It also involves maintenance and potential vacancy periods.
Assuming you’re a senior citizen, consider this allocation:
- ₹15 lakhs in PMVVY: This yields ₹1.11 lakhs p.a., or approximately ₹9250 p.m.
- ₹15 lakhs in SCSS: This yields another ₹1.11 lakhs p.a., or ₹9250 p.m.
- ₹10 lakhs in POMIS (if you’re investing as a couple): This yields around ₹66,000 p.a., or about ₹5500 p.m.
- ₹20 lakhs in FDs: Assuming a 6% p.a. interest, this would yield ₹1.2 lakhs p.a., or ₹10,000 p.m.
- Remaining ₹15 lakhs in a mix of Debt Mutual Funds and dividend-yielding stocks, which can yield variable monthly returns.
Remember, while the returns are important, tax implications also play a key role in deciding net yield. Most of the above-mentioned returns are taxable based on your income tax slab, except for returns from Debt Mutual Funds if held for more than 3 years (long-term capital gains tax with indexation benefit).
Also, maintaining a liquid emergency fund is recommended to meet any unplanned expenses.
Lastly, consider collaborating with a SEBI registered financial advisor. Like a maestro conducting an orchestra, they can fine-tune your investment strategy to optimize returns, manage risk, and help achieve your financial goals.
