Recurring income options from Investments

POSTED BY Chetan Thakkar ON June 26, 2012 10:47 am COMMENTS (5)

Hi:

I have about 40 lakhs invested in stocks and Gold ETFs for the long term. I would like to make a recurring income of about Rs. 4 to Rs. 5 lakhs per annum using this investment. What are the risk free options of generating this kind of income from this investment? Any testimonials from personal experiences most welcome.

5 replies on this article “Recurring income options from Investments”

  1. ravindranat_v@sify.com says:

    I have a suggestion

    Why not make use of SWP(Systamaatic withdrawal).The question is how much?
    Calculat the returns (ROI) and operate a slightly lower amount every month.That way your capital is in tact and you get a monthly income.
    I am doing this for MFs and am withdrawing Rs 21000 every month

  2. Ramesh says:

    There is no RISK free assets.

    Equities have return risk, while fixed income has inflation risk. Choose your poison.

  3. BanyanFA says:

    Hi Chetan,
    Considering that you are already invested in high risk investments, I would suggest you to slowly switch your investments from high risk to low risk asset classes. Interest rates are at a good level these days and you may want to park your funds into :
    1. Monthly Income Plans offered by Mutual Funds;
    2. Fixed Deposits with Monthly / Quarterly Payouts
    3. Good Quality Corporate Deposits.

    Regards
    BanyanFA

  4. Dear Chetan, when the underlying asset is Stocks & Gold, how can you expect risk free return. In fact there may not be a positive return in a year if market conditions are not right.

    For low risk return, please invest in non Eq. & non Gold investments like Bank FDs, FMPs, Debt MFs, P.O. MIS………………………

    Thanks

    Ashal

  5. BRSINGH says:

    4 to 5L of return every year from 40L investment that too risk free sounds impossible. If its possible then i also do the same.

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