I have Rs 50 lakh from the sale of a property I had bought ten years ago. Where should I invest this amount to earn 5-7 per cent interest per month?
Salil Menon, Kochi
We hope you have accounted for the capital gains from the transaction and deployed the same into capital gains bonds or paid the tax, depending on your convenience. As for the monthly 5-7 per cent returns that you are looking for, it amounts to 60-70 per cent gains annually. Not only is this unrealistic, it will not be possible, attempting to do so is fraught with risks and you will be better off to pare your expectations down to more realistic levels of say 10-12 per cent annually.
It is not clear about your other financial goals and the kind of progress you are making towards it. Assuming you are looking for an income stream from this Rs 50 lakh, you could deploy the same into a mix of guaranteed fixed income creating instruments to take care of your regular expenses. You could use the rest for capital appreciation in balanced funds, which are less risky compared to other diversified equity funds. By listing out your expectations from this gain, it will be easy to map the same to available financial instruments for best results.
