The question you’re asking is an age-old one, the search for an investment that can consistently offer high returns with low risk. The caveat here is that high returns typically accompany high risk. So, let’s try to construct a strategy that balances safety, returns, and the aspiration of a ₹5 lakh monthly income.
The goal of ₹5 lakh monthly translates to ₹60 lakh annually. If we consider your corpus of ₹1 crore, you’re essentially seeking an annual return rate of 60%. In the financial world, such returns are not just difficult, but nearly impossible to achieve consistently without exposing oneself to substantial risk. Dont get cheated by someone promising such sky high returns.
But despair not! There are ways to grow your wealth and create a robust income stream. Here’s a suggested strategy:
- Diversified Portfolio: Diversification is the essence of managing risk while aiming for high returns. Divide your corpus into different investment buckets such as high-quality equity (stocks or equity mutual funds), debt instruments (bonds, debt mutual funds), and perhaps a small portion in alternatives like REITs or Gold ETFs.
- Dividend-Paying Stocks: Investing a part of your corpus in dividend-paying blue-chip stocks can provide a steady income stream. While not fixed, it can add to your overall returns.
- Rental Income: If you’re open to real estate, a part of your corpus could be invested in a residential or commercial property. Rent from this could contribute to your monthly income.
- Systematic Withdrawal Plan (SWP): Consider investing in a well-performing balanced or debt mutual fund and opt for an SWP. This method allows you to withdraw a fixed sum of money regularly, providing a stable income stream.
- Fixed Deposits and Senior Citizen Saving Scheme: These are safer options but offer lower returns. Still, they provide stable income and are excellent for diversification.
Remember, achieving a balance between returns and safety is paramount. Always keep in mind the golden rule of investing – higher the risk, higher the potential returns and vice versa. It would be prudent to consult a trusted advisor or SEBI registered portfolio manager like Jama Wealth to tailor an investment strategy suiting your financial goals, risk tolerance, and market conditions.
