Turning your Rs. 50 lakhs investment into a steady income stream of Rs. 1 lakh per month might seem like a daunting task. But let’s break it down. You’re looking for an annual return of Rs. 12 lakhs on your Rs. 50 lakhs investment. That’s a 24% annual return. While that’s an ambitious target, it’s not impossible in the world of equities. However is suggest you moderate your expectations to 12-15% in line with what the market has given over the last many years.
Suggestions:
- Consider increasing your corpus to 1 cr so that the requirement of 1 lakh per month becomes more reasonable. Also you won’t end up taking unnecessary risks, or be swayed by options traders to snake oil salesmen.
- Be willing to invest for the long term (7-10 years or more), equities have historically been able to deliver higher returns. Success in the stock market requires patience and conviction. You might experience ups and downs, but stay the course. Investing is a marathon, not a sprint.
- Consider diversifying your portfolio across different asset classes to balance risk and return.
- Regularly review your investment portfolio, at least once a quarter. • Rebalance your portfolio as needed, based on market conditions and changes in your financial goals.
The famous investor Peter Lynch once said, “The key to making money in stocks is not to get scared out of them.” So, keep your eyes on the goal, remain patient, and trust the process.
The journey to wealth creation can be smooth and profitable with the right investment approach and a trusted advisor. If you need guidance, consider Jama Wealth’s expert investment advisory and tailored portfolio management services. We’re here to help you navigate the financial markets and achieve your investment goals.
