Publication details: Money Manager – CNBC Bajar – 14-07-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by Naimish Patel :-
My age is 58 years. I want a regular income of Rs. 45,000 p.m. after my retirement, for which I can invest a lumpsum of Rs. 50 lakhs.
Please suggest an investment plan along with the names of mutual funds.
I have sufficient life insurance, family health cover and enough invested in gold and real estate. I have also made the necessary provisions for my contingency requirements.
Advice given:
- As on today Rs. 45,000 income itself implies 10.8%. This is not possible as such.
- If you invest for an additional 2 years you can expect to have near about Rs. 60 lakhs and thus Rs. 45,000 p.m, i.e. Rs. 5.4 lakhs p.a. might be possible so long as the rate of returns ranges around 9%.
- That said you have the following options via mutual funds however in any case there is no assurance of monthly payment and you have to create an income flow via SWP mechanism.
- Gilt funds – you may get this return here but expect little capital loss plus volatility.
- Liquid / ultra short term / short term funds – return will be in range of 8-9%.
- Corporate bond funds – return will be in range of 8-9.5%.
- Monthly Income Plans – return will be in range of 8-12%.
- The greatest advantage in such MF investment is that you will get better tax adjusted returns.