Investment option for a regular Payout

Q & A ForumCategory: InvestmentsInvestment option for a regular Payout
kumar asked 3 years ago
Hello Sir, i am looking to have 1.5 lakhs of payout each year for next 25-30 years. So which would be a better investment option? I am looking for something that returns my initial investments at the end of term. If i am not wrong, the mutual funds dividend option erodes the initial investment over the years, correct? Is there any good financial instrument that meets my needs with a better returns? Thank you for your reply.
3 Answers
Sreekanth Staff answered 3 years ago
Hi, May I know your age? Is this expected periodic income used for meeting your living expenses? What would be your expected investment (corpus) for this purpose? Are you willing to take risk? What are your other existing investments (if any)??
kumar replied 3 years ago

Hello sir,
I’m 35 years old. This is to cover child’s future education and miscellaneous expenses. Child is 2 years now. Instead of paying it out of my income, i could invest a capital and use it to the maximum extent for child’s needs.
I have 10 lakhs in mind to invest.
My existing investments are in PPF, NPS and few MF’s.
Thank you for your kind reply.

Sreekanth Staff answered 3 years ago
Hi, May I know if your are adequately covered with life insurance? Is your family (self, spouse & kid) covered with adequate health insurance cover?  
kumar replied 3 years ago

Hello sir, I have a term life cover for 75 lakhs with Max life. I don’t have any other insurance policies. Have taken out a family floater health insurance for 10 lakhs with star health. Also have a personal accident policy worth 20 lakhs.
My mother is a dependent. Paying a health policy of 3 lakhs SI on her name as well. My wife is a home maker, not working. I do pay my house loan and that will complete in another 17 years. I just want to make sure there is a steady source of income to meet my child’s education needs. Thank you.

Sreekanth Staff answered 3 years ago
Hi, Glad to know that you have got your BASICs covered! Considering the type of Goal and the extent of risk you can afford to take for this, can look at a combination of Bank FDs & RBI Floating Rate bonds. In case, you have any senior citizen parent, can ask them to open Sr.Citizen Savings Scheme and can get periodic income (at slightly better rate of return Plz be aware of lock-in period and tax treatment.   Related articles :
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