Home >Money >Q&a >Where can I invest 40 lakh for 15 years to get 1.25 lakh every month?

I am 44 years old, and I have a surplus of 40 lakh in my account. I want to invest this money to generate a monthly income of 1.25 lakhs per month after my retirement at 60. Would you please suggest a mixed portfolio that can help me achieve my goals?

-Name withheld on request

Since you have 15 years to create a retirement corpus, I suggest investing in equity mutual funds to build your post-retirement corpus (assuming you are not a conservative investor). Invest your surplus of 40 lakh in the direct plans of these funds -- Tata Index Sensex Fund or HDFC Index Sensex Fund; Mirae Asset Emerging Bluechip Fund or Parag Parikh Flexi Cap Fund; and Kotak Small Cap Fund or Axis Small Cap Fund -- through (systematic investment plan) SIPs of one year in the ratio of 40:40:20.

Assuming an annualised return of 10%, your equity fund investment would grow to a corpus of about 1.67 crore in 15 years. Once you reach your retirement age, withdraw 80 lakh from the retirement corpus and invest it in short-term debt funds. Remain invested in equity funds for the rest of your corpus.

Assuming monthly withdrawals of 1.25 lakh from the short-term funds and an annualised return of 6%, your investments in short-term debt funds will last for seven years. During these seven years, your remaining equity corpus will grow to 1.69 crore. Redeem 80 lakh from your equity corpus again to replenish your debt corpus and generate your monthly income. Keep repeating this cycle after every seve years.

Naveen Kukreja is CEO and Co-founder, Queries and views at

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