Home > User

Need Expert Advice?Our Gurus Can Help

Somnath
Somnath
Ramalingam

Ramalingam Kalirajan4703 Answers  |Ask -

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

Asked on - May 16, 2024Hindi

Listen
Money
Please let me know the best & secured investment of 10 lacs with monthly income plan
Ans: Investing ?10 lakhs to generate a secure and steady monthly income requires a balanced approach that ensures safety while providing reasonable returns. Here are some options to consider:

Senior Citizens' Savings Scheme (SCSS)
Overview
Eligibility: Individuals aged 60 years and above.
Investment Limit: Up to ?15 lakhs.
Interest Rate: Typically higher than regular fixed deposits.
Tenure: 5 years, extendable by 3 years.
Payout: Quarterly interest payouts.
Benefits
Safety: Backed by the Government of India, ensuring high security.
Regular Income: Provides a steady income every quarter.
Tax Benefits: Eligible for tax deduction under Section 80C.
Post Office Monthly Income Scheme (POMIS)
Overview
Eligibility: Open to all Indian residents.
Investment Limit: ?4.5 lakhs per individual, ?9 lakhs for joint accounts.
Interest Rate: Fixed, and reviewed quarterly.
Tenure: 5 years.
Payout: Monthly interest payouts.
Benefits
Safety: Government-backed, offering high security.
Regular Income: Monthly interest payouts for consistent cash flow.
Fixed Deposits (FD) in Banks
Overview
Eligibility: Available to all.
Interest Rate: Varies by bank, generally lower than SCSS but higher for senior citizens.
Tenure: Flexible, typically ranges from 1 to 10 years.
Payout: Monthly, quarterly, or annual interest payouts.
Benefits
Safety: Up to ?5 lakhs insured by Deposit Insurance and Credit Guarantee Corporation (DICGC).
Flexibility: Choose tenure and interest payout frequency based on needs.
Senior Citizen Benefits: Higher interest rates for senior citizens.
Mutual Funds with Systematic Withdrawal Plan (SWP)
Overview
Eligibility: Open to all.
Types of Funds: Debt mutual funds for lower risk.
Payout: Monthly withdrawal as per chosen amount.
Benefits
Flexibility: Choose the amount and frequency of withdrawals.
Tax Efficiency: Better post-tax returns compared to traditional savings options.
Potential Growth: Debt funds offer higher returns compared to fixed deposits.
Combining Investments for Optimal Security and Returns
To maximize security and ensure a steady monthly income, consider diversifying your ?10 lakhs across different instruments. Here's a suggested allocation:

Senior Citizens' Savings Scheme (SCSS)
Investment: ?4 lakhs.
Monthly Income: Approximately ?2,800.
Post Office Monthly Income Scheme (POMIS)
Investment: ?4.5 lakhs.
Monthly Income: Approximately ?3,150.
Bank Fixed Deposit (FD)
Investment: ?1.5 lakhs.
Monthly Income: Approximately ?900 (assuming a 7.2% annual interest rate for senior citizens).
Conclusion
This diversified approach ensures a secure investment with a steady monthly income. The combination of SCSS, POMIS, and FD provides a blend of safety, regular income, and tax benefits. Adjust the allocation based on your specific needs and preferences.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
(more)
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x