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50 year old looking to invest for Rs 30,000 monthly income - How much and where?

Ramalingam Kalirajan |6340 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Prabhakkar on Jul 17, 2024Hindi

To get a month income of Rs 30000 what should my MF corpus and which fund shoukd I opt?

Ans: To earn a monthly income of Rs. 30,000 from mutual funds, the primary objective is to build a sustainable corpus.

Estimating the Required Corpus
To achieve a monthly income of Rs. 30,000, we need to calculate the total corpus. Assuming a conservative annual withdrawal rate of 4%, we can derive the needed corpus.

Choosing the Right Mutual Funds
When selecting mutual funds for this purpose, it's crucial to focus on specific types of funds that align with your goals. Here are key points to consider:

Diversified Equity Funds
These funds invest across various sectors.
They balance risk and reward.
Hybrid Funds
These funds mix equity and debt.
They provide stability and growth.
Monthly Income Plans
These plans focus on regular payouts.
They are suitable for generating steady income.
Benefits of Actively Managed Funds
Actively managed funds have several advantages over index funds:

Professional Management: Certified financial planners oversee the investments.
Flexibility: Fund managers can adapt to market changes.
Potential for Higher Returns: Skilled managers can outperform benchmarks.
Disadvantages of Direct Funds
Direct funds might seem cost-effective but have certain drawbacks:

Lack of Guidance: Investors might miss expert advice.
Higher Risk: Without a certified financial planner, risks might be higher.
Benefits of Regular Funds
Investing through a certified financial planner provides these benefits:

Expert Advice: Ensures informed decisions.
Risk Management: Helps in balancing risk.
Personalized Strategy: Tailors investments to your needs.
Building a Sustainable Corpus
Here’s a step-by-step approach to building your corpus:

Step 1: Assess Your Current Investments
Evaluate your existing mutual funds and other investments.

Step 2: Diversify Your Portfolio
Ensure your portfolio includes:

Diversified Equity Funds
Hybrid Funds
Monthly Income Plans
Step 3: Regular Contributions
Continue regular investments through SIPs. This ensures consistent growth.

Step 4: Rebalance Periodically
Review and adjust your portfolio periodically with your certified financial planner.

Final Insights
Achieving a monthly income of Rs. 30,000 from mutual funds is attainable with a well-planned strategy. Focus on a mix of diversified equity funds, hybrid funds, and monthly income plans. Regular investments, periodic reviews, and guidance from a certified financial planner will ensure you reach your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Asked on - Jul 17, 2024 | Answered on Jul 17, 2024

Thank you Sir

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.