How to invest Rs 1 crore to get monthly income
My 66-year-old sister has no income and no one to support her after she lost her son. I have decided to sell her flat and move her to a senior living home with a monthly expenditure of Rs 50,000. The sale will leave me with about Rs 1 crore after deducting capital gains tax. How should I invest this amount to generate a monthly income for her?
Vidya Bala, Co-Founder, PrimeInvestor.in: Invest in safe options that give around 7% return. Choose from the Senior Citizens’ Savings Scheme, RBI Floating Rate Bonds, and bank fixed deposits that you can lock in at this rate for five years or more. Considering her age, keep at least 10% of the corpus in a combination of savings bank account and short-term bank FDs so that it can be easily liquidated. This will also be necessary to pay taxes, apart from possible medical needs.
Want to take exposure to a sector which grows much faster than GDP
I am 40 years old and earn Rs 50,000 per month after tax. I want to retire after five years and start a business. I have around `30 lakh in fixed deposits. I also invest Rs 5,000 per month in mutual funds. I live in a self-owned house. How should I invest to earn `1 lakh per month to cover my living expenses after I retire?
Naveen Kukreja, CO-FOUNDER AND CEO, PAISABAZAAR.COM: You have not shared your portfolio, the estimated post-retirement benefits, and the amount required to start the business. Based on the information shared, it seems impossible to generate a post-retirement monthly income of Rs 1 lakh after five years. Moreover, starting a new business may involve a considerable gestation period before reaching a break-even point. Till then, your portfolio would have to sustain occasional capital infusion. So, you may have to rethink
