42-Year-Old Aims for ?2 Lakh Monthly Income in 10 Years: Expert Advice

I am 42 years old, and for the last 18 months, I have been investing ?90,000 per month in SIPs (20% in small cap, 25% in multicap, 20% in hybrid, 30% in large cap, and 5% in an IT digital fund). The total value of these funds is now ?18,00,000. I also have a PF of ?11,00,000, ?3 lakh in the stock market, and two houses with a monthly EMI of ?40,000. Currently, this is all the wealth I have. I would like to achieve a monthly income of ?2 lakh after 10 years. Could you please suggest the best steps I can take to reach this goal? Thank you in advance for your guidance. Best regards,

Ans: Existing corpus 18+11+3=32 L
Assuming modest growth @ 10% pa this corpus will grow to 83 Lakhs 10 year hence.

Also SIP of 90K will yield a corpus of 2.22 Cr after 10 years

So comprehensive corpus of 2.22 + 0.83=3.05 Cr

Considering annuity at 6 % this will yield a monthly income of 1.52 L falling short of your expectation of 2 L pm.

This can be addressed in two ways:
Either you increase SIP amount to 1.30 L or top-up current SIP amount by 10% each year.

This leads to corpus of 3.21 + 0.83=4Cr+

An annuity at 6% will yield you a monthly income of 2 L(pre-tax).

The rental income from your extra house or other fund resources are not considered.

A modest return of 13% is considered from pure equity schemes.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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Happy Investing

I m 49yrs, investing in SIP since 2019, started with Rs.10k/month, now Rs.20k/month. This month invested Rs.10lk in 4 equity linked MFs. Expecting Rs.43lks from PPF by 2031. How should I go further to have monthly income of Rs.2lk after 60yrs of age? How can I earn Rs. 80,000 in 12 months by investing just Rs. 4,000? Not possible in my opinion. I will continue to track answers i wish to learn from other experts.. I am 31 years-old & investing INR 110k/ month in various SIPs in India since July 2015. How can I make 10 Crores in 10 years from now? I have invested in PPF and Bank FD, and asset allocation in my SIP portfolio is appropriate as of March 2016. Good job! your thinking process is abolutely perfect. You have a set goal to achieve an end number of Rs10crores. But it will lead to utter failure- I will explain in a moment- And you also have a good savings rate of Rs1.1l per month which adds up to Rs13.2l per year. So assume even if your investments yield 0% returns over the long period it would still amount to Rs1.32crores. Now don’t get upset when I say 0% returns. When you invest in equities, you have the worst scenario in your mind before you venture. Preparing for the worst is preparing to succeed. Now lets look at your preferred mode of If I invest 15000 INR every month in SIPs, how much returns can I expect by the end of 15-20 years? *Answering this question from my perspective* As I am going to invest for a long term, I would choose EQUITY funds. ( No debt or hybrid) Per month I am going to invest Rs 15000. So, it amounts to 1 lakh 80 thousand per year and 36 lakhs for 20 years. In this case, I am assuming an annual returns of 12% as it is equity fund and any good equity fund can give 12% returns. At the end of 15 years, Amount Invested= 27 lakhs Wealth Gain= 48.7 lakhs Expected Total amount= 75.7 lakhs At the end of 20 years, Amount Invested= 36 lakhs Wealth Gain= 1.1 crore Expected Total amount= 14987219 ( 1.5 Crores) I hope this an If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? Rs. 10000 per month means 240 percent per annum rate of interest You cannot get through investments anywhere in the world If you have financial discipline and know the techniques of doing any business activity, you can definitely get the return in the long run See the example: Buy clothes worth Rs. 50000 (need not be in a single day). You have purchased 500 pieces at Rs. 100 per piece. Start selling th Where should I invest Rs 30,000 every month? Hey Keshav, I am not a Financial Adviser, so i can’t advise where to invest, but here’s what i will do as a middle class investor. Split that 30K into three parts: 15,000 - Plan A I will invest this money in Fixed , PPF or RD deposit every month without fail, i will make sure, all the interest generated will also be put back into this account again and again. until i really need it for emergency or re-investing it in Home down payment, This money will only be for the most important need. 10,000 - Plan B I will take the next 10K, and split it in to 7K and 3K. With 7K i will find two good mutual funds If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? First of all, any mutual fund question is incomplete without a Goal and Individual Age. Have you thought why you are investing 3000 and till what period ? What is your target amount? Without having answers to these questions it doesn't matter you invest in 1 fund or 100 funds. Now for your purpose we make assumption that you are now 25 years old and you need 80 lakhs amount for your child higher education after 25 years (that is your child may be at a age of 21) So as you are investing early I assume you could take a bit higher risk and target small cap funds with 15% annual returns expectation I If I invest 2,000 rupees per month in SIP for 10 years, in which fund should I invest, and how much will I get a return after 10 years? My suggestion would be to go for Mid Cap Mutual Funds. There are quite a number of Good Mid Cap Funds available for investments like: Quant Mid Cap Fund, Nippon India Growth Fund, HDFC Mid Cap Opportunities fund, SBI Magnum Mid Cap fund etc. etc. Now how much you will get after 10 Years. For Example Quant Mid Cap Fund - Direct Plan has NAV of Rs 197.99 its 3 years returns are 36.83 % and returns since launch of fund is 18.64 % and its assets under management is Rs 3781 Crores. Suppose you do Monthly SIP in this fund for 10 years or 120 months and we assume the fund will return 15 % average then you I want to invest in SIP, 1000 per month for 5 years. Is there any SIP available with this amount? You can start your investment in mutual funds via SIP of Rs. 1000 for 5 years. Checkout following schemes in which you can begin your investment. Reliance Tax Saver ELSS G Axis Long Term Equity Fund G SBI Magnum Multicap Fund G ICICI Pru Value Discovery Fund G L&T Tax Saver Fund G HDFC Long Term Advantage Fund G Franklin India Tax Shield Fund G Sundaram Diversified Equity G UTI Mastershare G UTI Balanced Fund G UTI Bond Fund G Sundaram Money Fund G Following calculations are takes place : Monthly Investment (SIP) = Rs. 1000 Time Horizon (in years) = 5 years Expected Return (%) = 12.5 Total SIP Amount Invested What should I do with Rs. 50,000 to earn Rs. 10,000 per month? There are lots of things you can do with your Rs 50,000 but if you invest in bitcoin, stock exchange or start trading you first have to know how these things work don't Just invest blindly. I would suggest you invest it in yourself get knowledge, get smarter. Look at it this way right now the 2ND richest person on this planet is Jeff Bozos the CEO of Amazon. Yes he's a billionaire. Now think about it for a second does Amazon have physical store ? No. Does it advertise on TV ? No. It all started form internet and it's where it generates it's traffic from. In America about 50% of people earn from I want to invest 15-20k per month in SIP, how much return is expected after say 2-3 years? Of Rs.20,000 invest Rs.10,000 in Equity mutual funds, Rs.5,000 in Balanced funds and Rs.5,000 in Debt mutual funds. Normally it will more than 3 years to see decent return from equity & balanced mutual funds but the return will be good around 13% to 15% (Tax free). As for debt funds, you will see returns sooner and it will be around 9% (Taxable). In three years returns won’t be much. You will be investing around Rs.7 lakh and you may have return of around Rs.60,000 after 3 years. But as years goes on, power of compounding takes effects and you will see massive returns in long term like in 15 ye I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? I recommend you to invest in yourself by doing a professional course so that you stop asking these type of question. By investing money in yourself you may open a business for yourself and can much more. On investment term, the monthly return of 20% is possible only in a poonzi scheme where chances of losing money are very high. How can I generate a monthly income of Rs 50,000 from Rs 20 lakh? Learn “Income investing” method which goes on like this: Buy a basket of banks : HDFC BANK, ICICI and Kotak. These 3 make the major market cap of all banks. You can put these “Shares as Margin” with good brokers like ICICIDIRECT and get up to 85% of amount as margin. Thus investment of 20L gives u a margin of about 17L. Sell Banknifty (BN) call contracts about 40–50 days from current date and such that the premium comes close to ?50,000 ?50k premium needs to write 2500 points of BN contracts as the lot size is 20. Writing 1 Lot requires about 60k of capital. With 17L capital, you can write about 2 If I invest 1000 per month in SIP for 20 years, how much will I return after 20 years? For this amount, which fund is best for me? If you Invest in SBI Small Cap Mutual Fund thru SIP of Rs 1000 per month for 20 Years or 240 months then your Expected Fund value at the end of the 20 th Year would be Rs 24,38,856.38 approx. SBI Small Cap Fund is currently returning 25.81 % average since its launch. However, in the above calculation I have considered only 20 % average returns. Your total Investment Rs 1... If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? It depends. If u want to have sound sleep in nights without worrying about fluctuations, balanced advantage funds r great. In theory they follow the principle of BUY LOW and SELL HIGH. Again it's a very individual preference. Everyone is UNIQUE and should invest as per his/her capacity and personal situation. Ideal would be to invest in combination of NIFTY 50 index funds and NIFTY next 50 index funds Again the proportion can vary from 70:30 to 50:50. Many people will say I have high risk tolerance but remember to recover 5% loss u haveto earn double 10 % of profit and so on. So it's better to have hi If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? Where do I invest Rs. 2000 per month for SIP? What if I started investing 2000rs / month in SIP for 40 years? Which SIPs are good for investing Rs 500 per month to get Rs 20 lakh and above after 16 years? Which are the best long-term MF SIPs to invest Rs. 4,000 per month? How do I invest 500 Rs per month? What capital do I need to invest to get Rs.20K per month in dividends? I want to invest 5000 (fixed) as SIP every month for my sister for 10-15 years for a corpus of 30 lakhs. What are some good funds for investment?

Ans: It's great that you're exploring investment options and seeking advice. Investing in SIPs can be a prudent way to build wealth over the long term. Here are some general considerations and principles to keep in mind:

Diversification: It's often recommended to diversify your investments across different asset classes and fund categories. This helps spread risk and maximize potential returns. Consider allocating your investments across equity, debt, and balanced funds based on your risk tolerance and investment objectives.

Investment Horizon: Determine your investment horizon, which refers to the length of time you plan to stay invested before needing to access the funds. Longer investment horizons typically allow for more aggressive investment strategies, whereas shorter horizons may necessitate a more conservative approach.

Risk Tolerance: Assess your risk tolerance carefully and choose funds that align with your comfort level. Equity funds tend to offer higher potential returns but also come with higher volatility and risk. Debt funds, on the other hand, offer lower risk but typically lower returns.

Expense Ratio: Pay attention to the expense ratio of the mutual funds you're considering. Lower expense ratios can translate to higher returns for investors over the long term, as less of the fund's assets are consumed by fees and expenses.

Fund Performance: While past performance is not indicative of future results, it's still essential to review the historical performance of mutual funds before investing. Look for funds with a consistent track record of delivering returns that align with your investment goals.

Review Regularly: Regularly review your investment portfolio and make adjustments as needed based on changes in your financial situation, investment goals, and market conditions. Rebalancing your portfolio periodically can help ensure that it remains aligned with your objectives.

Seek Professional Advice: If you're unsure about which funds to choose or how to construct a well-diversified portfolio, consider seeking advice from a qualified financial advisor. An advisor can assess your individual circumstances and help tailor an investment strategy that meets your needs.

Remember that investing involves risks, and it's essential to conduct thorough research and exercise due diligence before making any investment decisions. By following these principles and investing consistently over time, you can work towards achieving your financial goals.

Best regards.

Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment