I am planning to provide monthly income of Rs 10,000 to my mother at the age of 60 years. At present her age is 52yrs and illiterate
HDFC Balanced Fund is an equity-oriented balanced fund. I normally suggest equity fund only if your time horizon is more than 5 years to stay. I am not sure which ability of him guided you to invest in equity for your monthly fixed return expectation. In my view, don’t touch such equity product. If LIC’s immediate annuity is seems to be costly to you, then better to use Postal MIS (Remember not the Mutual Fund Companies products called MIS).
Your requirement is monthly income generation (fixed I think), then how can he suggested equity fund and from that again one more equity. I myself puzzled the way he is guiding you.
Use products like Senior Citizen Savings Scheme or LIC’s Jeevan Akshay VI. Safe products without risk.
It is not immediate annuity plan like LIC’s plan I quoted. Stay away from such plans strictly.
Recently, I met a Certified Financial Planner. My query is: I must provide some monthly income( Rs 10,000/-) to my parents from next year onwards or next 5 yrs. I told that I do not have immediate money for purchase immediate annuity LIC scheme. The LIC scheme pricing more.
The CFP suggested that, invest in HDFC Balanced Fund for Rs 1Lakh lump sum and the outcome received from that fund be again invested in any FUND in SIP mode. Like this, you can increase more than Rs 1Lakh amount( Principal) and returns increased.
Is CFP suggestion reliable and scalable?
Suggest me if any better plan OR features available.
Is there any chance to pay monthly of Rs 1lakh?
Awaiting for your reply.