Invest this amount to get ₹1.5 lakh monthly income after 20 years2 min read 17 Jul 2021, 09:49 AM IST
Mutual funds: While planning for life post-retirement, one needs to keep the rise in inflation during the investment and post-investment period in mind, say tax and investment experts
Mutual fund investments are exposed to market risk but this risk factor goes down if the time-horizon of an investor is long. According to tax and investment experts, the way debt-instruments like bank FD, Public Provident Fund (PPF), Post Office RD, etc. are finding it difficult to beat the rise in inflation in long-term, it's advisable for the investors to look at equity mutual funds, if the investment perspective is long-term or more than 15 years. In this period, one can expect to get around 10-12 per cent annual return on one's money, which is enough to beat the rate of inflation during the investment period. For those who are going to retire in next 20 years, it is important to get their money work when they are not working. So, how to create a regular monthly income post-retirement should be planned when the earning individual reaches 40 years of age.