Imagine you’re planning to prepare a traditional thali meal. You need to balance your dishes, ensuring you have a mix of different flavours, but nothing too spicy to disrupt the harmony. The same applies when investing 2 crore rupees for a stable monthly income without any risks.
The defensive strategy comes to play here, just as you’d opt for comforting dal-rice over a spicy biryani. You need to limit your exposure to volatile elements, like equities, and focus more on stable, predictable ingredients like fixed income securities.
But remember, the spice of life lies in contentment. Understanding your monthly income needs is key. For instance, a 7% risk-free return today means an annual income of 14 lakhs, which is more than 1 lakh per month. That’s like having a warm, comforting meal ready every month.
Yet, there’s a risk of inflation, the unseen ingredient that could upset your meal. Inflation can reduce the purchasing power of your fixed income. Therefore, if you can manage with a slightly smaller monthly meal, it’s wise to include a small portion of equity exposure through good mutual funds or stocks. This can help add a dash of extra flavour (read: returns) to your financial thali, aiding in combatting inflation.
Remember, as the wise saying goes, “Do not put all your eggs in one basket.” Balance is key in investment, just like in a perfect thali meal.
For personalised guidance, consider Jama Wealth’s expert investment advisory and PMS services to help you create a balanced, risk-managed investment plan.
