I am 59 years male generating a decent income every month, saving and investing as per my well planned retirement and travel plans. I will get around Rs. 1.10 Lakh as additional one time income next month. I will not need it for a long time (say at least for 10 years). I want to get an income of Rs. 3000 just only once in a year from this bulk money. That's all. Remaining may be let it to grow. Please advise me to invest it suitably. Ready to take moderate risk.
Thanks in advance.
Ans: You are expecting to get an additional amount of Rs 1.1 Lakhs next month, from the same you have a requirement of an annual payout of Rs. 3,000/- and the remaining amount will be invested for the long term (10 years) for wealth creation purpose.
In order to meet this payout requirement, you can invest the partial amount of Rs. 60,000 in a corporate FD providing annual interest payout of 7-8%, which will help you to meet the payout requirement.
The remaining amount of Rs. 50,000 can be invested in a good large cap fund which can provide you a likely annualised CAGR of 12% or so in 10 years’ investment horizon. The value of Rs. 50,000 invested today in large cap fund @12% CAGR will come out to be Rs. 1,55,000 approx.