Investing 18 Lakhs for Monthly Returns of 20,000: A Comprehensive Guide
Investing a sum of 18 lakhs (Rs. 18,00,000) for monthly returns of Rs. 20,000 (equivalent to 264,000 per annum) can be achieved through a combination of riskier and more conservative investment options. This guide will explore various strategies, including equity funds, debt mutual funds, and franchise opportunities, to help you achieve your financial goals.
Equity Investment Strategies
For those willing to take on more risk for higher returns, direct equity investment or a combination of equity mutual funds might be suitable. Direct equity involves buying and selling individual stocks, while equity mutual funds pool investors' money to invest in a diversified portfolio of stocks. Both options can yield returns much higher than typical savings accounts or debt instruments, but they come with higher risks.
One strategy is to invest in a mix of large-cap, mid-cap, and small-cap equity mutual funds. This diversification can help manage risk while potentially increasing returns. Additionally, investing in at least 30 rated small-cap mutual funds can accelerate your returns and align them with your expectations.
Direct Equity and Indian Futures Trading (FO)
For a more speculative approach, intraday trading or carrying forward trades (FO) in the equity segment can provide substantial returns. However, this requires a deep understanding of the global market, economic indicators, and market trends. Without the requisite knowledge, these trades can lead to significant losses. The daily average turnover in the NSE-BSE markets is around Rs. 8 lakhs, illustrating the scale of the market.
Diversifying your investment portfolio with a thorough understanding of the market dynamics can increase your chances of achieving substantial returns. Undergoing comprehensive training and guidance from experienced mentors is highly recommended for newcomers to the FO market.
Debt Mutual Funds for Conservative Investors
For investors who prefer a more conservative approach, debt mutual funds offer a risk-reward trade-off that can provide steady monthly returns. Debt mutual funds primarily invest in fixed-income securities such as bonds and treasury bills, making them less volatile than equity funds.
Debt mutual funds can provide returns ranging from 7-10% per annum, which, when compounded, can help achieve the desired monthly returns of Rs. 20,000. Websites like MoneyControl can be utilized to compare different debt mutual funds and select the most suitable option based on your risk tolerance and return expectations.
Franchise Opportunities
For those interested in fringe benefits such as flexible working hours and the potential for substantial commission earnings, franchise businesses can be a viable alternative. Vestige is one such franchise that offers a 4.5% commission, which can increase to 7% for high sales performance.
Harsh Goyal, available at 917503641292, can provide more information on the Vestige franchise. This network marketing company can generate average monthly sales of 20-30 lakhs and has seen an impressive Rs. 131,000 in single-day sales. Engaging with a mentor or franchisor can provide valuable insights and support to ensure successful adoption of the business model.
Conclusion: Achieving a target return of Rs. 20,000 per month through an investment of 18 lakhs can be achieved through various strategies. Equity funds, debt mutual funds, and franchise opportunities each have their own risks and rewards. Diversification, knowledge, and guidance are key factors in achieving your financial goals.