How to invest to earn regular income

Please note that you can earn a regular income from your accumulated corpus by investing the same in fixed income instruments (Senior Citizen Scheme, Bank FD, Postal MIS) wherein you can earn an assured income approx between 7.50 - 8.50%.

However, you are looking for return in the range of 12% which can be possible only if you invest in equity or equity oriented mutual funds like hybrid aggressive funds or dynamic asset allocation funds. But remember that, to invest in mutual funds your risk taking appetite should be high.

What we suggest is, provided you are able to take risk, mutual fund systematic withdrawal plans or SWPs. Since you are retired you can invest in hybrid aggressive funds (earlier known as balanced funds) and draw a fixed amount every month. If you check the historical returns of hybrid aggressive funds, the top funds have given in excess of 12% return. But, if you are drawing a fixed amount every month, our suggestion is that you should not draw more than 8-9% during the initial SWP period.

Therefore, from your corpus of Rs 50 Lakhs, you should not draw more than Rs 37,500 per month (@ 9% return per annum). Drawing little less from your investments may also ensure that you can get some capital appreciation in the long run.

To know more about SWPs please read the following blogs -

https://www.advisorkhoj.com/licmf...

https://www.advisorkhoj.com/miraeasset...

please check this SWP research tool as well https://www.advisorkhoj.com/mutual-funds-research...

Hope the above is helpful to you ! Wishing you the best !!