I am a Mech Engr with experience in services(repair/maintenace). can I start a business without any much investments? If yes, what are the legal things, I should get through?

Ans: In whatever is your area of interest, talk to as many experts and consumers you can.. evaluate if your idea is solving a real problem that your potential consumers face. Fine tune your business idea. Then again talk to people if they are willing to pay you money to sort out the problem.. and how much. Concurrently, talk to experts on the cost of solving the problem/ offering the solution. Wherever you think the cost of solution is lesser than what people are willing to pay, is a good idea to work on prima facie. Then create a detailed feasibility report. Take help of some expert at this stage. Understand the investments and evaluate how you will need to fund the business initially. See if you can get some grants / seed funding. Typically seed funding is through friends and family . There are also a few govt schemes for entrepreneurs- see if you can get some grant/ financial assistance under these schemes. Put some of your own money and start implementing your idea in the mean while. Don’t be over optimistic in your planning. Work for the best but be prepared for the worst.

Ans: I think you need focus in your life. Build your core skills in either a vertical industry or a horizontal function that cuts across all industries. Do 1-2 pilot projects with some companies, at whatever compensation they are willing to hire you. Once you build your credentials, sell your services aggressively.

Ans: Hello;

Once you liquidate your ancestral assets and raise funds of 7 Cr, you may deploy it as follows:

1. Buy an immediate annuity from a life insurance company for 3 Cr.

Assuming 6% annuity rate you may expect a monthly income of 1.05 L post-tax.

2. Next 3 Cr you may invest in a conservative hybrid debt fund/s which has higher exposure to debts and less exposure to equity.
Do an SWP at the rate of 4%, two years after the initial investment. This way your systematic withdrawals will be taxed at 12.5% as LTCG(only on the profit portion). Also your corpus will grow over two years.
Even at 3 Cr level it can provide post-tax income of 87.5 K per month.

Average return from these funds are generally around 7-9% although this cannot be assured.

3. The balance 1 Cr may be used to make FDs of varying maturities from 1 year to 5 years in lot size of 5 L so that even if you need some funds you may be liquidate FDs only matching your requirements.

The SWP from MF will provide you inflation adjusted returns and you may need to top-up annuity income by further investments.

Buy good healthcare insurance covering maternity expenses too.

Best wishes;
X: @mars_invest