Stepping into the world of investments with \u20b920 Lakh is like starting with a rich, fertile plot of land. The dream? Harvesting a monthly crop worth \u20b950,000. But the question is, which seeds will get you there? Let’s embark on this investment journey and see how the Indian landscape can help us achieve this.<\/p>\n\n\n\n
1. Fixed Deposits<\/a> \u2013 The Paddy Fields<\/strong>: Much like the consistent yield of a paddy field, Fixed Deposits (FDs) are traditionally stable. At current rates, an FD might fetch you around 5-6% annually. On a \u20b920 Lakh corpus, this translates to about \u20b91 Lakh per annum, or \u20b98,333 monthly \u2013 falling short of our \u20b950,000 target.<\/p>\n\n\n\n 2. Debt Mutual Funds \u2013 The Vegetable Gardens<\/strong>: With a bit more risk than FDs, debt funds can offer slightly better post-tax returns. Expect around 6-8% annually. But even at 8%, we’re only looking at \u20b91,33,333 per annum or about \u20b911,111 monthly.<\/p>\n\n\n\n 3. Equity Mutual Funds \u2013 The Orchards<\/strong>: These can be the cherry trees of our plot, having the potential to offer returns of 12-15% or more in a thriving economy like India. That’s up to \u20b93 Lakh annually or \u20b925,000 monthly. While promising, remember the returns are also subject to market risks.<\/p>\n\n\n\n 4. Dividend-yielding Stocks \u2013 The Dairy Farms<\/strong>: Some stocks, like the cows in a dairy farm, provide regular dividends. While capital appreciation is one part, dividends from blue-chip companies can add to the passive income.<\/p>\n\n\n\n 5. LSG Framework<\/strong>: Given the desired monthly income and available corpus, a blend might work best. Liquid assets for immediate needs, Safety to preserve the capital, and Growth assets to generate returns. Using the Liquidity-Safety-Growth (LSG) framework, judiciously allocate between FDs, debt funds, and equity.<\/p>\n\n\n\n Warren Buffet once said, \u201cIf you don’t find a way to make money while you sleep, you will work until you die.\u201d This rings especially true for passive income.<\/p>\n\n\n\n To sum up, generating \u20b950,000 monthly from \u20b920 Lakh isn’t immediate or straightforward. The key lies in balancing risk and return, and periodic reviews. A SEBI Registered Investment advisor can help tailor this balance. If you’re searching for guidance, consider reaching out to Maxiom Wealth’s investment advisory services.<\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n A 7% FD rate drops to ~4.9% after 30% tax for high earners \u2014 barely above inflation. See how FD compares to goal-based investments over your horizon.<\/p>\n FD Returns Calculator \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Stepping into the world of investments with \u20b920 Lakh is like starting with a rich, fertile plot of land. The dream? Harvesting a monthly crop worth \u20b950,000. But the question is, which seeds will get you there? Let’s embark on this investment journey and see how the Indian landscape can help us achieve this. 1.… Read More »I have Rs.20 Lakh right now, what can I do to to earn Rs.50000 per month as passive income?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,20],"tags":[],"class_list":["post-593","post","type-post","status-publish","format-standard","hentry","category-financial-planning","category-income-generation-financial-planning"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=593"}],"version-history":[{"count":2,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/593\/revisions"}],"predecessor-version":[{"id":3917,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/593\/revisions\/3917"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Are FD Returns Beating Inflation After Tax?<\/h3>\n