Seeking suggestion for dividend payout mutual funds.

[ak7550]

Hi, I am planning to invest 5.5 lakhs lumpsum into a mutual fund for my parents. The main idea behind this investment is to get some monthly income to satisfy monthly basic needs along with that they can get a wholesome amount after certain tenure. What's your suggestion would be in this case?
I am ok with any mutual funds or ETF.
P.S.: - The main idea is to get as much monthly payout as possible.

 

[real_name_hidden]

I would rather have you invest some part in senior citizen saving scheme (scss) which gives good returns ( but quarterly ) and another part in a nifty 50 index fund which should be kept untouched till Scss is active.

Alternatively You can invest some money in debt mfs instead of scss for monthly income but they would give less return than scss.

P.S. You can get more returns in debt mfs also, but your parents can not take the risk with corpus.

Also contact a financial advisor instead of asking this on a a credit card centric forum

 

[ak7550]

I would rather have you invest some part in senior citizen saving scheme (scss) which gives good returns ( but quarterly ) and another part in a nifty 50 index fund which should be kept untouched till Scss is active.

Alternatively You can invest some money in debt mfs instead of scss for monthly income but they would give less return than scss.

P.S. You can get more returns in debt mfs also, but your parents can not take the risk with corpus.

Also contact a financial advisor instead of asking this on a a credit card centric forum

Thanks for your suggestion, but I want a monthly payout option to fulfill the monthly basic needs.

 

[ak7550]

Currently, these are the mutual funds, that I am looking to invest in. Although it's not very clear to me that which are these funds will provide monthly dividend payout instead of reinvesting the dividends.

 

[theflash]

Thanks for your suggestion, but I want a monthly payout option to fulfill the monthly basic needs.

S W P 🤔

 

[real_name_hidden]

Thanks for your suggestion, but I want a monthly payout option to fulfill the monthly basic needs.

I don't know why you're going for dividend option in equity mf. They're taxable at slab rate and no guarantee of consistent monthly income. Nobody would even touch these funds nowadays.

And why the hell would you invest in equity mf for monthly income requirement, clearly you haven't thought it through or have limited financial literacy.


I would suggest consulting a financial advisor.

 

[theflash]

Hi, I am planning to invest 5.5 lakhs lumpsum into a mutual fund for my parents. The main idea behind this investment is to get some monthly income to satisfy monthly basic needs along with that they can get a wholesome amount after certain tenure. What's your suggestion would be in this case?
I am ok with any mutual funds or ETF.
P.S.: - The main idea is to get as much monthly payout as possible.

If you need contact details of Certified Financial Planner or Certified Financial Advisor you can ping me.

Kindly delete the comment if this isn't allowed.

 

[raghumahajan]

Not a financial advisor,
But I give you the same advice as given by @real_name_hidden

Do not invest in market-linked schemes. Do not run after returns if you need monthly payouts; returns will nullify or be equal to safe schemes with comparatively lower interest rates.

On average, you can expect approximately ₹4,000 to ₹6,000 per year in dividends per lakh invested in dividend yield mutual funds, before taxes. However, this is subject to market risks, fund performance, and tax deductions.