Are you interested in a steady income, like a monthly pension? If so, there is a way for you to receive a pension of up to Rs. 1 lakh per month for 25 years through an investment scheme. This can be achieved with a systematic withdrawal plan.
If you are considering investing your hard-earned money and aiming for good returns, there are several options available. Investing in the right way can help you achieve your financial goals.
Some individuals prefer to receive a large amount of returns at once, while others seek a regular, monthly income like a pension. For those looking for monthly income, the best option is available in equity funds, such as the Systematic Withdrawal Plan (SWP).
The Systematic Withdrawal Plan allows you to invest in equities and receive returns like a pension. However, this requires a substantial initial investment. After that, the withdrawal plan is executed according to the investor’s preference.
The amount of pension you receive depends on the amount you invest and the chosen maturity tenure. It’s important to note that mutual funds do not guarantee returns.
Returns depend on the performance of the chosen fund. If the fund performs well, you will receive higher returns over a longer period.
For instance, if you invest in an equity fund scheme with a net asset value (NAV) of Rs. 10 and purchase 1 lakh units, you will need to invest Rs. 10 lakhs. To receive a pension of Rs. 10,000 per month, you would sell a certain number of units based on the NAV each month.
The calculation for selling units and receiving the pension will depend on the NAV and the number of units you have. If the fund’s value increases, you will need to sell fewer units to receive the same pension amount.
Overall, to receive a pension of Rs. 1 lakh per month for 25 years, an investment of Rs. 1 crore 55 lakh 50 thousand is required.
Assuming an annual return of 8%, this investment has the potential to provide a monthly pension of Rs. 1 lakh for 25 years, with the investment returned after maturity.