I have Rs.10 lakh from which I wish to generate Rs.20, 000 monthly incomes. Can you suggest the best possible way to achieve this? - Himani Chaturvedi, Gurgaon
To generate Rs.2.4 lakh a year from Rs.10 lakh means you are looking for 24 per cent annual return or higher as you are actually looking to derive Rs.20, 000 incomes every month. There is no investment that guarantees 24 per cent return so if you are looking to earn such returns by way of investments, it will not be possible. You can consider investing in equity as an asset class and invest directly in stocks or diversified equity mutual funds. The key reason to put your money in equity is because it is the one asset class that has the potential to earn high returns in the long run. Also remember that equities carry the maximum risk among all investments.
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Opt for stocks only if you understand investing in them and can handle it on your own. If not, we suggest you invest in diversified equity mutual funds from the OLM Elite list, which we share every quarter in our magazine.
