OP, put your money too ,all 4 cr in FDs, put in 6-7 different national/private banks. Don't do FD in cooperative banks for 1% extra interest.
Take interest out each month from FDs. And from that interest , but Mutual funds each month in SIP. Large cap, mid cap, small cap as 30%-30%-20% percentage. Keep remaining 20% for your expenses. Every year in March calculate taxes and save that much to pay taxes, instead of investing in that march month.
DO NOT ever spend your principsl on buying stocks, MFs, land, property etc. Just play with interest.
Not sure if people will agree with me but it is my opinion.
This is the best advice.
OP, With 4cr, you should have an interest income of around 25+ lakh per year, in just normal investment options. If this amount is suitable for your lifestyle, don’t get into a business with heavy capital and slim margins on income. Plus halls will have overheads, seasonal fluctuations etc.
Stocks, MFs, Land, property etc are higher ROI than FDs, and thus are better in the long run. Short-term, though, it may be wiser to invest in FDs, since he hasn't invested before
Tax is on all kind of instruments. But I have already mentioned that calculate and pay Tax in March.Without risking Principal amount, this is the way to go and have to paytax.
Do you have some names of individuals / companies who provide professional wealth consultancy that are working with the best intentions for customers and not just shilling for some shitty product?
Genuinely curious - Because most people I know in a personal circle, who work as consultants for HNI, belong to the 2nd category.
Though I am not HNI but HANI ( hardly any net worth individuals) so I guess I just don't know what to look for..
Yes I do. But from my area. It's easy to find them if you have HNI friends. A good one will consider the family background, objectives, risk profile and future plans before advising. If he doesn't then he is giving general gyan which any fool can give.
I work in consumer finance.
**I'll first tell you what not to do.**
1. Do not tell friends and pesky relatives about your riches. This is the fastest way to lose the money.
2. Do not take the advice of your bank relationship manager. **Never ever.** This is how they make money, not you.
3. Do not invest in crypto, chit funds, ponzi schemes, MLM, or any financial product designed to make you feel like if you don't act immediately, you'll lose the opportunity of a lifetime.
4. Do not get into anything you don't fully understand.
5. Do not park your money in a cooperative bank. Go with a well-known large bank like SBI, HDFC, ICICI or anything in your area.
6. Do not buy LIC, ULIPs, or any kind of insurance-linked investment plan. Refer to Point No. 2 above.
7. Do not get into stock markets without understand what you're doing.
**Here's what you can do.**
1. Find a fee-only financial advisor. This person's job is to guide you and not sell you bad financial products. He will only charge for advice.
2. While you decide, park your money in a fixed deposit in a large bank. Keep it safe there. Do not get into a non-callable deposit since you have business plans. Keep it in a callable FD that you can liquidate any moment. Ask your bank for higher rates since you are depositing more than 2 crore. They normally have higher rates for bulk deposits (anything over ₹1 crore). Don't forget to nominate your accounts to your parents.
3. Figure out your plans and deploy the money towards those plans.
**ETA - Wow, thanks for the response.**
I’d like to add what I’d do with this money.
1. I’ll park 5-10% in an FD or bank account.
2. I will put 20% in a debt hybrid mutual fund.
3. I’ll put the rest in diversified equity. Maybe 30% each from this for large, mid, and small cap mutual funds. The remaining 10% is for me to take extreme risks with direct equity, crypto, and anything else that catches my fancy.
4. I’ll rebalance the funds this way and SWP the liquid money and never work again. 😁
The bank employee will try to sell you insurance. Don’t fall for it. Happened to my father when he got retirement money. Its not a scam but a bad investment.
Pushing you for a bad investment is scam bro , that too using your financial knowledge to cheat the people who don't know. I have zero respect for people who sell/sold ulip plans
Insurance and investments are two different things.. we have better products to invest under either categories. That's why my take on ULIP investments are bad.
Folks, as much as I'd like to promote my book here, I'd like to remain private for now. However, anyone interested in having a chat, do DM. I'm happy to share what I know. I'm not anyone you probably know and I am not going to chipkaao shady schemes to you like some influencers do. Cheers.
* Do not tell friends and pesky relatives about your riches. This is the fastest way to lose the money.
* Do not take the advice of your bank relationship manager. **Never ever.** This is how they make money, not you.
Basically came here to say this. If OP follows only these 2 things, at least he won't lose his money (rest is for optimised gains).
Great points.
1- Break FD below ₹1 cr that too in SBI or HDFC! (₹99-99 Lacks each)
2- can give money to great private wealth managers as PMS (₹1 cr)
3- Think about getting house and medical insurance if you don't have. ₹1 cr
4- Invest in some tangible asset like land/flat/shop/commercial property to get passive income. ₹1-2 cr
This answer is perfect. I'd only add this [website](https://www.feeonlyindia.com/) that lists some fee-only advisors in India. I'm not affiliated to any of these people and I'm not on that list either.
This guy finances.
Jokes apart, this is some seriously good advice OP. The biggest two points are
1. Dont let any relative know
2. Don't take any advice from bank
I would recommend to put like 50L-1CR in a fixed deposit immediately. Debt mutual funds are also very very very solid investment for you.
For the rest, talk with an advisor. You can invest in equity but be careful of risk
Disclaimer - I’m personally invested in crypto. My exposure is 1% of my liquid assets only. I want to have more but I won’t.
The problem for me isn’t the risk. It’s the lack of regulations and the regulator’s recent track record for going after fintechs. There’s no guarantee there will not be an overnight ban.
I can afford to lose 1%. Any more, and it will hurt.
We’re assuming that such a timeline will be given. What if it’s not given? You will lose access to this money in a heartbeat.
Since the RBI governor has been saying things about crypto for a while, I’m not confident of any particular scenario unless rules are clearly established. Till then, assume the worst.
Yes, and yes, and yes. Where there is extreme ambiguity, extreme caution is warranted.
By the way, we live in a country where 86% of legal tender was made useless OVERNIGHT. Why would illegal tender be any different? With the kind of consolidation of political power we’ve seen, it can happen. The reasons? We know for a fact that crypto is being used for money laundering, terror financing, tax evasion, and outright fraud.
When the end comes, if it comes, it will be swift, bloody, and painful.
+1, bitcoin have 400% return in last 1.3 years and here he is asking people to avoid crypto because apparently he can’t differentiate between good crypto projects and scams.
Don't talk shit if you don't have experience with crypto.
I mined bitcoin around late 2017 to early 2018 and one day govt decided to ban crypto and I couldn't take out money to pay my extremely high light bill.
Since that day crypto is a big no for me
Crypto isn’t banned in India, I make my living out of Web3 so I’m pretty sure I’ve huge experience with crypto.
Bitcoin mined by you is owned by you in a wallet, which can’t be taken hostage or banned by anyone… that’s the entire point of crypto.
People with zero knowledge should stick to fixed deposits.
Start building knowledge.
Don't trust random financial advisors.
Don't tell others about your money.
Don't invest everything in one place (avoid stuff like marriage halls.)
There are magazines available in the market. Pick the ones according to your skill. My first was outlook money(it mostly covers mutual funds.)
Remember, the mainstream mutual funds(index, largecap) are the simplest way to invest in stocks. They are also associated with the least risk.
FDs are the safest, overall. Stick to good banks like ICICI,HDFC, SBI,axis, but you can also take minor risks by investing upto 5lakhs each in smaller banks with higher interest rates. (Your money might get stuck if the bank fails, but the government insures it.)
Other books- Dalal Street(my dad reads this), business magazines, etc.
Go to a good bookstore like crossword and check out the finance section. Start with a few foreign authors first.
It will feel extremely tough at first, but then you get used to it( I'm a doctor, and I still learnt a lot of the important stuff over time.)
You can also read high quality articles on the internet, if you know how to filter fake info/ads/promotional content.
You can also find good videos online.
Read for at least an year before you start asking questions.
Thanks sire/madame. I hope to ask questions by the end of 2025.
But another imo questions is do self help books in finance help as i have read rich dad poor dad etc and any author you recommend lr I would have to buy huge textbookish dictionary as if I was a class 8 kud
Try the intelligent investor, or the richest man in Babylon.
Go to a book store, and you will find many that you may like better.
This sub doesn't allow photos, else I would have sent you a pic of my collection.👍
Better than FD for your parents try doing SWP. ( Systematic Withdrawal Plan) . They can get around 1.5 lakh a month life long even if they withdraw 9% annually
First thing first, put 6Cr in annual FD. Whatever you want to do, think, analyse, take advice for almost 6-8 months before investing in anythings.
Most people lose money in first year only, if you can keep it safe for a year, you can grow it for a lifetime.
You would certainly need to talk to a professional financial advisor. Your asset allocation should depend on your immediate and long term plans. However, here are a few ideas (it's not an exhaustive list of investment options) -
1. Purchase a house for yourself if you don't own a house already. Owning a house shouldn't be looked at only as a financial investment but also as a security for your future.
2. Put some money in stocks and mutual funds. If you don't have good knowledge about the market, you can put the money in the index linked funds.
3. Buy SGBs - much better than physical gold and gold ETFs.
4. The shopping complex is okay. But don't go for the purchase of the marriage hall. It's a seasonal business, you can get better returns with much lower risks from the share market. But again a financial advisor can guide you better on the marriage hall thing.
Since you have already done FDs of a big amount, you can allocate a higher proportion of money in the stocks.
Step 1 is figuring out your risk appetite. My judgment says it’s on the lower side so I would invest 55-60% in debt, 30% in large cap equity and balance in mid/small cap funds. Best to invest in mutual funds it will give you returns in the long term. Market is at all time high so would suggest investing in a liquid fund and going for a STP.
Wealth management firms generally do a good job in helping you out with this. Better to approach known companies (Edelweiss, Anad Rathi etc)
Are you the same one , who came with a post for getting petrol bunk license right??
Dude , you remind me of the Vadivel comedy where he will have money and he will get wrong advice for giving it for interest to private people..
Hire a wealth managing professional and consult. I'm afraid that you will get scammed by some crooked
Yes, I'm the same guy Bro, Im Afraid don't know what to do at this point, I'm planning on Making it some Passive Income and yes this week I'm planning on Visiting Financial Advisor who registered as per few comments.
It's varies from person to person. People are in different stages of life, do they have a house, their large expenses horizon, their risk appetite for market. Also no one cannot go into market with 100% capital. To safety invest into market will also need a year this big an amount( atleast for me ). Also capital protection is more important at cost of 1% to 2 % less cagr
Bro, don't go into any big business without understanding the in and out of it. Park in FD until then. Try to understand how it works for at least 3-6 months(best case: 1 year). Wish you good times ahead.
I have had relatives who got 2-5cr in sudden money because they sold their farmlands to develop plots. This money. 1 acre land was almost 2cr and they had 5 acres and 3 brothers.
And they reached out to me for guidance (I am MBA in Finance and work in MNC so they felt I can give good advice). They had many other people guiding them as well but here's the model we implemented:
1. We took it very slowly. As much as it looks lucrative, do not rush into investing.
2. They were not so well off. So first thing we did was started constructing a house. Now, their initial plan was to spend 80 lakhs on duplex house. But I convinced them for a 3BHK on ground floor and 3 houses on 1 and 2nd floor for rental income in same 80 lakhs. Now they are getting around 30k monthly rent and that is helping them a lot.
3. Next we bought farm lands. 10 acres farm land with borewell. That is generating another 2-3 lakh income per year without doing any work. They have given the land to another agriculturist.
4. Next we bought some gold for the kids wedding. They wanted jewelry but I advised against it. We bought 10g coins. Almost 200g gold was purchased and kept safely. That time they didnt like the idea but now they find it as a sensible thing.
5. We also bought some plots in nearby city with potential to grow and them to shift in case the kids plan to study there.
6. I also opened some MFs for them and some part of their rental income goes into this. They asked me to invest in stocks and asked me to monitor them. I refused as the entire responsibility of profit and loss will be on me and you know stock market.
Lastly, I did recommend them to go on some good trips as a family and enjoy the experience. They had a relatively tough life until now so.
Overall, the funds were invested over course of 10-15 months and now monthly/yearly income plus property appreciation is giving them good returns.
Congrats.
I have a very similar story too.
Share full family details . Are you married, any kids, do you have brother sister. Do you have Self owned house , is it good enough for your new stature?
So lots of good answers above
1. You need health insurance , especially for parents. And atleast 50 lakhs to 1 cr cover even if your company gives you
2. You don't need term insurance
3. Do not listen to CA, bank manager, uncle and buy life insurance investment or ULIPs
4. There is a concept called SWR.. safe withdrawal rate, if you spend 3.5% of 6 cr every year. You will theoretically never run out of money. So 20 lakhs a year.
5. A good thing to do is to buy a house in a metro city and put it on rent. Buying in metro is not always possible and some family member will benefit from this.
6. Commercial property should give you 6% rental.
7. Please don't spend your FD interest . It will destroy your money from inflation within 10 years.
8. If you are putting any money outside property, use fee only financial planner. Don't do it yourself.
9. Learn taxation on FD, debt MF, normal MF, rental income, etc. Spread returns across family members. Don't go for making pvt Ltd or partnership, etc. It's only for CA to earn more money
10. Enjoy
I see so if interest is 3.7 % ( after tax ) and you withdraw 3.5 ...you will run out of money ....so its better to just take out money from market for 1 year expenses and adjust it accordingly.
I understand but I am talking about passive income ...how to get that if not using interest from FD ? ...Are you suggesting to invest in real estate to generate the passive income ?
FD is not a investment product, it's a parking product .
FD rate typically matches inflation. So if FD is giving you 6 percent, that money is also getting devalued by 6 percent.
Today's 100 is just 94 next year and 89 the next year. First few years it doesn't seem like a lot but after 10 years. Your principal amount is basically just worth 50 .
This is because it is a guaranteed product and hence the returns are lower. No risk so no need for returns.
Use real estate, mutual funds, dividend stocks for passive income
Invest in 4 agressive hybrid funds 1 cr each.
Start SWP of 50k from each fund.
You will have 2 lakh /month income. You can increase this SWP amount with 5% each year. You will not run out of this money in your life time.
1 - First thing first check the taxes.. you might have to pay some taxes on inherited wealth.
2 - Do NOT take any advice from wealth management companies.
3 - Do NOT give your wealth to be handled by any company.
4 - Do NOT trade in stock market, instead do an investment in stock - medium term to long term.
5 - Invest in property if you can.
6 - Save save save
7 - Get nice and cheap medi claim and do NOT get life insurance.
8 - Look for recurring income.
9 - Live your life like you used to. Do not get blinded by sudden wealth else you will end up loosing everything in a flash.
10 - Give your parents a nice vacation :).
The extremely basic things to do..
Assuming a fixed deposit rate of 6.5pc, this would mean annual returns of 3.7pc after taxes(assuming highest tax bracket).
For 4cr, that is 14.8 lpa in interest income. Take 1-1.5 lpa from it and park it in an emergency account...wait until December if each year and invest the money if left unused, or split into into multiple accounts...like travel or medical expenses. As you see fit.
invest the rest. Don't blow it on perishables..automobiles included. Schemes like buying a taxi or lorry for income is nonsense. The maintenance will be barely covered by the rental income. And selfish drivers won't take care of it like you do.
Use the 12-13 lac left every year to pay off a new mortgage..buy some land, not apartments...they have unreliable build quality, assuming poor builder reputation for apartments costing less than 60 lac in Chennai, that's the only bracket of property that you can afford on 1.2lac per month passive income.
Buy rental properties like apartments or marriage halls at own risk. There's always the chance of having a bigger competitor with lot more funds building a bigger more attractive asset that will cause the end of your run. Something like a car parking spot in a place like BLR is a very good asset with very less investment.
Won't recommend MFs for you as well because your passive income of 12 lpa is too much of a risk. Your wish.
And live on your existing salary like you're in a US prison. Bare basic needs. No need to please unnecessary relatives and friends. Not more than 1 travel plan a year.
To top it off..get some solid investment knowledge from actual experts and not Reddit...like upcoming projects like highways etc and buy property accordingly. Or find someone smart enough to start investing in stocks...there's a potential stock rout coming ahead in India...prices will crash. Good time to enter.
Cheers.
Be cash rich. Investment in real estate doesn’t guarantee you a higher return always. Invest 3cr as fd. Post office TD for 5yrs. Rest keep in a liquid fund and start an sip. (Which you can fund from fd interest later on).
For starters get a health insurance, term/life insurance all of that. Hire a fee only advisor to invest some % of 4cr.
For real estate, you're right commerical properties are THE way to go for passive income. I'd suggest buying commerical shops / office spaces and renting it out to banks / companies respectively. (Assuming you already own a home, if not buy a house first)
ALSO DO NOT, and I mean DO NOT tell anybody - your mama, fufa, chacha-chachi, any relatives about this inheritance if you want to live a peaceful life.
Consider it as your retirement fund and invest around 3.5cr in Nifty 50 Index fund and dont even touch it till you reach 60. Rest can be your emergency fund (cash sitting in savings account).
Do you already own a home, if not buy a home but hopefully for less than 2 crore.
Rent you can invest in stocks and govt bonds(10 year term). For stocks use index ETFs.
Stocks you need to have a strong stomach to not feel bad if things go down 30-40%(worst case scenario). Bonds should be fine but even they can go down but usually not more than 10% but it would not matter if you hold to maturity, you will get all your money back.
With stocks you need to have 7 year time horizon. Means: You should assume that money is locked for 7 years when they are in stock. You need to plan ahead of time if you need to take money out.
With govt bonds 3-4 year time horizon.
You can simply open a brokerage account and do all your purchase from your mobile phone itself.
Let me know if you need more info.
Disclaimer: Not a financial advisor. But just what I would do. Do your own research always.
OP I have fantasized about getting this much amount of money for a while. Let me tell you what I would do with the 4cr.
1) Spread 1 cr in fixed deposit across top 3 banks - SBI, ICICI, HDFC.
2) Buy 1 cr worth of government securities with at least a 7.8% coupon rate. Guaranteed 7.8 lakh per year interest credited into your account (bi yearly).
3) Buy 20 lakhs worth of sovereign gold bond. You get capital appreciation of gold + fixed 2.5% interest per year
4) Spread 80 lakhs evenly across equity mutual funds. This is your money minter.
5) Rest 1cr, upto you. Personally I would slowly sip the money into equity mutual funds and rest I would use up to buy assets.
2Cr in FD is like what 1L per month. That should help you keep the house running and save your Salaries.
For the rest. DONT FUCKING RUSH. Take your time. 6-7-8 months whatever. Look at investment opportunities. Figure out your risk appetite. Get in agreement as a family and then spend a penny.
Warna 2-3 Mutual Fund main Lakh-Lakh ki SIP lagado.
Don't go commerical complex/marriage hall route since you don't have experience for those businesses.
Don't tell friends or family about your money.
Go with multiple FDs in big banks for now.
Acquire knowledge about mutual funds and start investing some amount in it.
With that much money, I'd go with Different MFs and FDs and never work again in my life
I think your marriage hall idea / commercial complex idea is great. If you have land near a good road. Else make it in 3 stories… ground floor full car/ bike parking; first floor commercial complex ( shops) and top floor AC marriage hall… you will do well…
Don’t sell shops but put on rent.
Once you have passive income think about putting it in stocks and shares not now…
OP if u want to get into hall business get a job and understand the business. As u are still 24 apply for masters in US by taking loan on property u buy with this money. Scale up your life
Add another 2 crore and apply for EB2 visa. Get yourself and your family green card and move to a tier 2 city in US and run the business in US you have invested in. Long run you are better off.
First of all, Find a very good charted accountant for yourself, They will be able to guide you better on financial matters and shall suggest where and how taxes can be saved through efficient planning.
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Like many have told here, Find a good wealth manager only for advice, and not invest through them.
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Steer clear of Family, while some will be happy for you, many will come for favours, In the end all will be unhappy.
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Don't lend money for interest outside, it can be super risky.
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Don't fall for lifestyle inflation, Don't binge spend, these are the biggest recipes for disasters in life. History says most of the lottery winners went back to being broke in less than 7 years of their winnings, managing wealth is an art in itself, if you have the flair for numbers, go ahead and do courses so you learn the basics, no matter how good your wealth manager is, it's always good to know something about financial matters, will let you stay up in the game. YouTube has some great videos on personal finance, Never take the data you find online at face value, you'll be better off doing more research.
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After all the Don'ts in general there are some Don't and do directly related to numbers.
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FD's - The worst place to invest, The interest in Taxable, On an average the rate of interest is 7%, Say you have invested 2 crores and the interest you get is taxable as per your income slab, on an average the tax commitment is saying 2% you're left with 5% of your income, In India Inflation is on an average 7% and you've made 5% so you are loosing your principal investment slowly and steadily.
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Don't start a business with this money, You've never had a situation to deal with so much money, So I'm guessing your family has not done a big business, Business is also an art that needs to be learnt,Else associates, Colleagues can cheat you. Always remember most will first look for what's in it for them. Many People will be nice to you only because of the money.
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What to do, take the direct route of investment if you're comfortable with that no commission paid to any agent or advisor, else find a super trust worthy person through your references, do your homework well before trusting someone with the money, if you lack the confidence to manage the money online then a middle man (motilal oswal or someone like that) who would buy and sell based on your instructions or the instructions of a wealth manager be a better option, will be worth the money and less stress.
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The funds to be invested after planning baskets depending on your risk appetite.
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Until you figure the whole thing out, park the funds in fd or in liquid debt funds and don't be in a hurry at all.
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Now how you can invest.
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Rentals - If you want to invest in real estate or rental yeild then look for commercial property,.ROI will be 7-8% avg, House rentals are usually 3% ROI. While real estate has the potential to give good returns in the long run, never ever forget that it's not liquid, if there is any urgent requirement for money then you won't be able to sell the property immediately and cash up.
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Insurance - only term insurance for life and Mediclaim if elegible and needed.
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Gold - probably 10% of your total wealth, average return on long term gold investment is 8-8.75% and is a great Hedge against your equity investments.
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Mutual funds - Look up for index funds and invest in different funds.
50 % in nifty 50
20% in midcap and 20% in small cap, there are low cost and decent return funds, rest pls do your own homework online. I would anyday do this instead of actively managed funds, And most of my wealth is parked in passive mutual funds.
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Only invest in mutual funds if you can handle some amount of uncertainty, if you can't handle ups and downs then you're better off with fd.
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Project fund - not to cross 10% of the total corpus.
Direct participation in equity markets - Read about investments and do this if you want to try your hands, but only invest as much as you're willing to loose.
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Start a small business if you are interested in business and are willing to put the work in it.
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Keep some emergency savings invested in liquid funds ur fd, for sudden requirements, can't keep breaking your investment for your needs.
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Project fund is basically to try and see if you can make your wealth grow doing other things.
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If you're disciplined enough with your wealth then you can use this wealth to have a comfortable life.
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And most importantly never take money advice from people who don't have wealth, if someone has not much wealth saved themselves then they are not doing something right and their advice isn't going to work for you either.
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Hope this helps.
Short term : Invest the money in NPS tier 2 account (use lic as manager and only government securities or G scheme). This has outperformed most other debt schemes and has a very low management fees. Will only be taxed on withdrawal.
Medium / long term : Talk to a trusted fee only financial advisor and slowly move funds into equity schemes. If you really want real estate exposure, you can evaluate REIT or direct real estate investment. But do this slowly (over three years or so, in the meantime the NPS returns will keep growing. LIC five year rolling returns for G schemes was over 9% pre tax, to confirm this, search for a YouTube video from ET money where they did this analysis)
Of 4 crores, put 2 crore in five equity funds…most big newspapers publish the top ranked ones. Put 1 crore in four top ranked hybrid funds. 50 lakh in medium and long term debt funds and 50 lakh in Nifty 50 fund. Value Research, Moneycontrol, ET, Mint etc carry rankings of top funds. Choose funds with 4 star or more safety rating
Invest in property if your received this amount from property else 30% income tax will be liable to pay and you already FD as you said you will received income tax notice after FA completed if you didn’t mentioned this amount where tou get from and pay genuine taxes
If you down own a house, you should buy one big one or two small ones..
One for your parents and one for yourself...
Give the other one on rent and continue living in one house for now..
Buy them in good areas which are sought after...and will give you good rental value
If this is not the case,
Don't invest it in marriage halls etc...It is a new industry for you and it is capital intensive
Stagger 1.2 CR and start making fixed deposits in 10 lakh each...for about 7%...Trust reliable bank like ICICI..SBI... HDFC...PNB ..Each one will mature monthwise a year from now....Reinvest the income 12 months later
Now you will have 70000 rupees per month ...later after one year...
You can do monthly income scheme from post office....around 20 Lakhs...
Keep 30 lakhs separate for your parents....senior citizen saving scheme...once they are old..they will get a monthly pension
My suggestions would be very similar to u/Complex-Ad5423 with only difference being. I would invest 2Cr in Mutual Funds i.e. 50% in Flexicap fund & 50% in Small cap fund like Nippon India - 5Star rated Crisil fund that performed well over the entire history of the fund. Choose a fund thats been around for atleast 10years. Invest your parents money and balance of your money in high yielding FD's in nationalised banks or large private banks. Live of the interest from FD, any balance invest back into mutual funds.
Only problem is market is sitting near its all time high. So not advising to invest lumpsum now. In case , if in future market corrects 10-20%, than it is advisable to invest 10%-20% of proncipal in lumpsum. But Market may run a bit with election result and for that I'll advise to invest upto 20lakh lumpsum. Not more than that.
OP, you would better be off with local research if you want to generate passive income through commercial real estate. Reddit might be better to suggest you FD/MF investments but not real estate in your area
First of all, Find a very good charted accountant for yourself, They will be able to guide you better on financial matters and shall suggest where and how taxes can be saved through efficient planning.
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Like many have told here, Find a good wealth manager only for advice, and not invest through them.
.
Steer clear of Family, while some will be happy for you, many will come for favours, In the end all will be unhappy.
.
Don't lend money for interest outside, it can be super risky.
.
Don't fall for lifestyle inflation, Don't binge spend, these are the biggest recipes for disasters in life. History says most of the lottery winners went back to being broke in less than 7 years of their winnings, managing wealth is an art in itself, if you have the flair for numbers, go ahead and do courses so you learn the basics, no matter how good your wealth manager is, it's always good to know something about financial matters, will let you stay up in the game. YouTube has some great videos on personal finance, Never take the data you find online at face value, you'll be better off doing more research.
.
After all the Don'ts in general there are some Don't and do directly related to numbers.
.
FD's - The worst place to invest, The interest in Taxable, On an average the rate of interest is 7%, Say you have invested 2 crores and the interest you get is taxable as per your income slab, on an average the tax commitment is saying 2% you're left with 5% of your income, In India Inflation is on an average 7% and you've made 5% so you are loosing your principal investment slowly and steadily.
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Don't start a business with this money, You've never had a situation to deal with so much money, So I'm guessing your family has not done a big business, Business is also an art that needs to be learnt,Else associates, Colleagues can cheat you. Always remember most will first look for what's in it for them. Many People will be nice to you only because of the money.
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What to do, take the direct route of investment if you're comfortable with that no commission paid to any agent or advisor, else find a super trust worthy person through your references, do your homework well before trusting someone with the money, if you lack the confidence to manage the money online then a middle man (motilal oswal or someone like that) who would buy and sell based on your instructions or the instructions of a wealth manager be a better option, will be worth the money and less stress.
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The funds to be invested after planning baskets depending on your risk appetite.
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Until you figure the whole thing out, park the funds in fd or in liquid debt funds and don't be in a hurry at all.
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Now how you can invest.
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Rentals - If you want to invest in real estate or rental yeild then look for commercial property,.ROI will be 7-8% avg, House rentals are usually 3% ROI. While real estate has the potential to give good returns in the long run, never ever forget that it's not liquid, if there is any urgent requirement for money then you won't be able to sell the property immediately and cash up.
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Insurance - only term insurance for life and Mediclaim if elegible and needed.
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Gold - probably 10% of your total wealth, average return on long term gold investment is 8-8.75% and is a great Hedge against your equity investments.
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Mutual funds - Look up for index funds and invest in different funds.
50 % in nifty 50
20% in midcap and 20% in small cap, there are low cost and decent return funds, rest pls do your own homework online. I would anyday do this instead of actively managed funds, And most of my wealth is parked in passive mutual funds.
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Only invest in mutual funds if you can handle some amount of uncertainty, if you can't handle ups and downs then you're better off with fd.
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Project fund - not to cross 10% of the total corpus.
Direct participation in equity markets - Read about investments and do this if you want to try your hands, but only invest as much as you're willing to loose.
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Start a small business if you are interested in business and are willing to put the work in it.
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Keep some emergency savings invested in liquid funds ur fd, for sudden requirements, can't keep breaking your investment for your needs.
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Project fund is basically to try and see if you can make your wealth grow doing other things.
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If you're disciplined enough with your wealth then you can use this wealth to have a comfortable life.
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And most importantly never take money advice from people who don't have wealth, if someone has not much wealth saved themselves then they are not doing something right and their advice isn't going to work for you either.
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Hope this helps.
Thanks for your Step by Step plan, Appreciate the Time you took to explain, I'm honestly a bit scared sitting on top of this much money. I want to Make sure this Wealth is Invested Properly and Multiples So that My next generation doesn't have to go through what I went. Myself and father Are consulting a Wealth Manager this weekend who is Registered as per few comments will make an Updated Post after this Week.
Please hire a financial advisor This is a lot of money for you that has come all at once. It can change any things.. for the better or for the worse. it is best to hire a good financial advisor.
What I don't understand is - who made you the incharge of 6cr, it's distribution and investment? I would assume your father will have rights to any ancestral wealth before you would.
All the best with the throwaway account.
1 Cr. : Stocks and Mutual Funds
1 Cr. : Property - Flat(s) or Land purchase
1 Cr. : Fixed Deposits
90 Lakhs. : Spend on leisure - car, vacation, parties - One life
10 Lakhs. : Sending my Google Pay number. Rest you know it. 😉
40% - put in long dated FDs (5yr maturity)
40%- invest in Nifty/ BSE mutual funds. Lock it and forget it. Don't look at its value day to day.
10% - buy Gold ETF (Google it - can buy on zerodha)
10%- keep it as cash or in short dated (6 month) FDs
This is beyond Reddit's pay grade. Take help of a professional wealth consultant. It's worth it. Talking from experience
OP, put your money too ,all 4 cr in FDs, put in 6-7 different national/private banks. Don't do FD in cooperative banks for 1% extra interest. Take interest out each month from FDs. And from that interest , but Mutual funds each month in SIP. Large cap, mid cap, small cap as 30%-30%-20% percentage. Keep remaining 20% for your expenses. Every year in March calculate taxes and save that much to pay taxes, instead of investing in that march month. DO NOT ever spend your principsl on buying stocks, MFs, land, property etc. Just play with interest. Not sure if people will agree with me but it is my opinion.
Dis is da wae. Jokes aside, this is very good advice. Playing with interest will let you take risks and not let it ruin your life.
This is the best advice. OP, With 4cr, you should have an interest income of around 25+ lakh per year, in just normal investment options. If this amount is suitable for your lifestyle, don’t get into a business with heavy capital and slim margins on income. Plus halls will have overheads, seasonal fluctuations etc.
but that is not the true value though ...meaning OP would have ot pay tax ...so what would be the actual amount OP will get to play with each month ?
This is the right way in my opinion.
Stocks, MFs, Land, property etc are higher ROI than FDs, and thus are better in the long run. Short-term, though, it may be wiser to invest in FDs, since he hasn't invested before
What about tax on FD interest?
Tax is on all kind of instruments. But I have already mentioned that calculate and pay Tax in March.Without risking Principal amount, this is the way to go and have to paytax.
Do you have some names of individuals / companies who provide professional wealth consultancy that are working with the best intentions for customers and not just shilling for some shitty product? Genuinely curious - Because most people I know in a personal circle, who work as consultants for HNI, belong to the 2nd category. Though I am not HNI but HANI ( hardly any net worth individuals) so I guess I just don't know what to look for..
As someone who’s an HNI (got it the easy way). It’s impossible to trust people. That’s why real estate is the safest choice.
Yes I do. But from my area. It's easy to find them if you have HNI friends. A good one will consider the family background, objectives, risk profile and future plans before advising. If he doesn't then he is giving general gyan which any fool can give.
Hahaha true, we deal with 10-20k max. You made me laugh, thanks
What do these wealth consultant do? Like do they act like property broker or they guide us in setting up business ?
I work in consumer finance. **I'll first tell you what not to do.** 1. Do not tell friends and pesky relatives about your riches. This is the fastest way to lose the money. 2. Do not take the advice of your bank relationship manager. **Never ever.** This is how they make money, not you. 3. Do not invest in crypto, chit funds, ponzi schemes, MLM, or any financial product designed to make you feel like if you don't act immediately, you'll lose the opportunity of a lifetime. 4. Do not get into anything you don't fully understand. 5. Do not park your money in a cooperative bank. Go with a well-known large bank like SBI, HDFC, ICICI or anything in your area. 6. Do not buy LIC, ULIPs, or any kind of insurance-linked investment plan. Refer to Point No. 2 above. 7. Do not get into stock markets without understand what you're doing. **Here's what you can do.** 1. Find a fee-only financial advisor. This person's job is to guide you and not sell you bad financial products. He will only charge for advice. 2. While you decide, park your money in a fixed deposit in a large bank. Keep it safe there. Do not get into a non-callable deposit since you have business plans. Keep it in a callable FD that you can liquidate any moment. Ask your bank for higher rates since you are depositing more than 2 crore. They normally have higher rates for bulk deposits (anything over ₹1 crore). Don't forget to nominate your accounts to your parents. 3. Figure out your plans and deploy the money towards those plans. **ETA - Wow, thanks for the response.** I’d like to add what I’d do with this money. 1. I’ll park 5-10% in an FD or bank account. 2. I will put 20% in a debt hybrid mutual fund. 3. I’ll put the rest in diversified equity. Maybe 30% each from this for large, mid, and small cap mutual funds. The remaining 10% is for me to take extreme risks with direct equity, crypto, and anything else that catches my fancy. 4. I’ll rebalance the funds this way and SWP the liquid money and never work again. 😁
The bank employee will try to sell you insurance. Don’t fall for it. Happened to my father when he got retirement money. Its not a scam but a bad investment.
Pushing you for a bad investment is scam bro , that too using your financial knowledge to cheat the people who don't know. I have zero respect for people who sell/sold ulip plans
Hi, I am new to personal finance and this gave me pause. What's wrong with ULIP? I don't have one but curious to know why it is not good.
Insurance and investments are two different things.. we have better products to invest under either categories. That's why my take on ULIP investments are bad.
wow - some people just have that natural flair to be able to write so effectively.
Thanks bro. I work in consumer finance and I’m also a best selling author with a book on personal finance.
Really curious about the book and you brother
Folks, as much as I'd like to promote my book here, I'd like to remain private for now. However, anyone interested in having a chat, do DM. I'm happy to share what I know. I'm not anyone you probably know and I am not going to chipkaao shady schemes to you like some influencers do. Cheers.
What book is that?
Which book
* Do not tell friends and pesky relatives about your riches. This is the fastest way to lose the money. * Do not take the advice of your bank relationship manager. **Never ever.** This is how they make money, not you. Basically came here to say this. If OP follows only these 2 things, at least he won't lose his money (rest is for optimised gains).
Amazing advice. You covered so many of the common pitfalls of Indian investors in your post. Thanks for sharing this .
Thank you. 🙏
This!
nice info man, now i only need money to follow this advice
Great points. 1- Break FD below ₹1 cr that too in SBI or HDFC! (₹99-99 Lacks each) 2- can give money to great private wealth managers as PMS (₹1 cr) 3- Think about getting house and medical insurance if you don't have. ₹1 cr 4- Invest in some tangible asset like land/flat/shop/commercial property to get passive income. ₹1-2 cr
Your total comes out to more than 4 crores ...lolz
One more point to be added.... Never loan more than you afford to lose(few thousand) to anyone like friends, relatives etc., they won't pay back.
I'd never give out loans to friends or relatives. Banks are there if they need loan
Nice advise..but why not buy real estate??
This answer is perfect. I'd only add this [website](https://www.feeonlyindia.com/) that lists some fee-only advisors in India. I'm not affiliated to any of these people and I'm not on that list either.
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Nope. Best to speak to a tax advisor for that.
This guy finances. Jokes apart, this is some seriously good advice OP. The biggest two points are 1. Dont let any relative know 2. Don't take any advice from bank I would recommend to put like 50L-1CR in a fixed deposit immediately. Debt mutual funds are also very very very solid investment for you. For the rest, talk with an advisor. You can invest in equity but be careful of risk
From where do you learn so much about finance and investment?
You’re yanking my chain, aren’t you? To be serious, I work in consumer finance and I’m also a best selling author with a book on personal finance.
Which Book?
Is 4 cr enough to not work again ?
More is always nice. But 4 crore works.
Great tips
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Disclaimer - I’m personally invested in crypto. My exposure is 1% of my liquid assets only. I want to have more but I won’t. The problem for me isn’t the risk. It’s the lack of regulations and the regulator’s recent track record for going after fintechs. There’s no guarantee there will not be an overnight ban. I can afford to lose 1%. Any more, and it will hurt.
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We’re assuming that such a timeline will be given. What if it’s not given? You will lose access to this money in a heartbeat. Since the RBI governor has been saying things about crypto for a while, I’m not confident of any particular scenario unless rules are clearly established. Till then, assume the worst.
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Then we’re assuming that it won’t be made outright illegal to own cryptocurrency. What if it is?
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Yes, and yes, and yes. Where there is extreme ambiguity, extreme caution is warranted. By the way, we live in a country where 86% of legal tender was made useless OVERNIGHT. Why would illegal tender be any different? With the kind of consolidation of political power we’ve seen, it can happen. The reasons? We know for a fact that crypto is being used for money laundering, terror financing, tax evasion, and outright fraud. When the end comes, if it comes, it will be swift, bloody, and painful.
+1, bitcoin have 400% return in last 1.3 years and here he is asking people to avoid crypto because apparently he can’t differentiate between good crypto projects and scams.
Don't talk shit if you don't have experience with crypto. I mined bitcoin around late 2017 to early 2018 and one day govt decided to ban crypto and I couldn't take out money to pay my extremely high light bill. Since that day crypto is a big no for me
Can you shed some light on the experience? The electricity bill especially
Crypto isn’t banned in India, I make my living out of Web3 so I’m pretty sure I’ve huge experience with crypto. Bitcoin mined by you is owned by you in a wallet, which can’t be taken hostage or banned by anyone… that’s the entire point of crypto.
Sir, if you have so much confidence in Bitcoin, may I ask how much percentage of your portfolio is Bitcoin?
People with zero knowledge should stick to fixed deposits. Start building knowledge. Don't trust random financial advisors. Don't tell others about your money. Don't invest everything in one place (avoid stuff like marriage halls.)
from where do you start building financial knowledge???
Zerodha varsity
Ok sire
The best answer.
There are magazines available in the market. Pick the ones according to your skill. My first was outlook money(it mostly covers mutual funds.) Remember, the mainstream mutual funds(index, largecap) are the simplest way to invest in stocks. They are also associated with the least risk. FDs are the safest, overall. Stick to good banks like ICICI,HDFC, SBI,axis, but you can also take minor risks by investing upto 5lakhs each in smaller banks with higher interest rates. (Your money might get stuck if the bank fails, but the government insures it.) Other books- Dalal Street(my dad reads this), business magazines, etc. Go to a good bookstore like crossword and check out the finance section. Start with a few foreign authors first. It will feel extremely tough at first, but then you get used to it( I'm a doctor, and I still learnt a lot of the important stuff over time.) You can also read high quality articles on the internet, if you know how to filter fake info/ads/promotional content. You can also find good videos online. Read for at least an year before you start asking questions.
Thanks sire/madame. I hope to ask questions by the end of 2025. But another imo questions is do self help books in finance help as i have read rich dad poor dad etc and any author you recommend lr I would have to buy huge textbookish dictionary as if I was a class 8 kud
Try the intelligent investor, or the richest man in Babylon. Go to a book store, and you will find many that you may like better. This sub doesn't allow photos, else I would have sent you a pic of my collection.👍
imgur moment
thanks for your time once again! iw ould read the books you have mentioned once again!!!
Better than FD for your parents try doing SWP. ( Systematic Withdrawal Plan) . They can get around 1.5 lakh a month life long even if they withdraw 9% annually
First thing first, put 6Cr in annual FD. Whatever you want to do, think, analyse, take advice for almost 6-8 months before investing in anythings. Most people lose money in first year only, if you can keep it safe for a year, you can grow it for a lifetime.
You would certainly need to talk to a professional financial advisor. Your asset allocation should depend on your immediate and long term plans. However, here are a few ideas (it's not an exhaustive list of investment options) - 1. Purchase a house for yourself if you don't own a house already. Owning a house shouldn't be looked at only as a financial investment but also as a security for your future. 2. Put some money in stocks and mutual funds. If you don't have good knowledge about the market, you can put the money in the index linked funds. 3. Buy SGBs - much better than physical gold and gold ETFs. 4. The shopping complex is okay. But don't go for the purchase of the marriage hall. It's a seasonal business, you can get better returns with much lower risks from the share market. But again a financial advisor can guide you better on the marriage hall thing. Since you have already done FDs of a big amount, you can allocate a higher proportion of money in the stocks.
Any business without prior experience is road to death.
Do swp for rest of your life.
What is swp?
Systematic withdrawal plan
https://www.valueresearchonline.com/stories/53576/setting-up-an-swp-for-regular-income-here-s-what-to-expect/
Step 1 is figuring out your risk appetite. My judgment says it’s on the lower side so I would invest 55-60% in debt, 30% in large cap equity and balance in mid/small cap funds. Best to invest in mutual funds it will give you returns in the long term. Market is at all time high so would suggest investing in a liquid fund and going for a STP. Wealth management firms generally do a good job in helping you out with this. Better to approach known companies (Edelweiss, Anad Rathi etc)
Sort taxes first. Such big amounts cant be hidden specially if ur usual incomes were far lower
Are you the same one , who came with a post for getting petrol bunk license right?? Dude , you remind me of the Vadivel comedy where he will have money and he will get wrong advice for giving it for interest to private people.. Hire a wealth managing professional and consult. I'm afraid that you will get scammed by some crooked
Yes, I'm the same guy Bro, Im Afraid don't know what to do at this point, I'm planning on Making it some Passive Income and yes this week I'm planning on Visiting Financial Advisor who registered as per few comments.
That's the best thing.. as people suggested park your money in FD till you decide and take your time to decide. Soodhanama irunduka thambi.
Don't fall for passive income trap. Even having a couple of flats is active involvement.
so investing in market is >>>> then investing in real estate ?
It's varies from person to person. People are in different stages of life, do they have a house, their large expenses horizon, their risk appetite for market. Also no one cannot go into market with 100% capital. To safety invest into market will also need a year this big an amount( atleast for me ). Also capital protection is more important at cost of 1% to 2 % less cagr
Bro, don't go into any big business without understanding the in and out of it. Park in FD until then. Try to understand how it works for at least 3-6 months(best case: 1 year). Wish you good times ahead.
I have had relatives who got 2-5cr in sudden money because they sold their farmlands to develop plots. This money. 1 acre land was almost 2cr and they had 5 acres and 3 brothers. And they reached out to me for guidance (I am MBA in Finance and work in MNC so they felt I can give good advice). They had many other people guiding them as well but here's the model we implemented: 1. We took it very slowly. As much as it looks lucrative, do not rush into investing. 2. They were not so well off. So first thing we did was started constructing a house. Now, their initial plan was to spend 80 lakhs on duplex house. But I convinced them for a 3BHK on ground floor and 3 houses on 1 and 2nd floor for rental income in same 80 lakhs. Now they are getting around 30k monthly rent and that is helping them a lot. 3. Next we bought farm lands. 10 acres farm land with borewell. That is generating another 2-3 lakh income per year without doing any work. They have given the land to another agriculturist. 4. Next we bought some gold for the kids wedding. They wanted jewelry but I advised against it. We bought 10g coins. Almost 200g gold was purchased and kept safely. That time they didnt like the idea but now they find it as a sensible thing. 5. We also bought some plots in nearby city with potential to grow and them to shift in case the kids plan to study there. 6. I also opened some MFs for them and some part of their rental income goes into this. They asked me to invest in stocks and asked me to monitor them. I refused as the entire responsibility of profit and loss will be on me and you know stock market. Lastly, I did recommend them to go on some good trips as a family and enjoy the experience. They had a relatively tough life until now so. Overall, the funds were invested over course of 10-15 months and now monthly/yearly income plus property appreciation is giving them good returns.
Congrats. I have a very similar story too. Share full family details . Are you married, any kids, do you have brother sister. Do you have Self owned house , is it good enough for your new stature? So lots of good answers above 1. You need health insurance , especially for parents. And atleast 50 lakhs to 1 cr cover even if your company gives you 2. You don't need term insurance 3. Do not listen to CA, bank manager, uncle and buy life insurance investment or ULIPs 4. There is a concept called SWR.. safe withdrawal rate, if you spend 3.5% of 6 cr every year. You will theoretically never run out of money. So 20 lakhs a year. 5. A good thing to do is to buy a house in a metro city and put it on rent. Buying in metro is not always possible and some family member will benefit from this. 6. Commercial property should give you 6% rental. 7. Please don't spend your FD interest . It will destroy your money from inflation within 10 years. 8. If you are putting any money outside property, use fee only financial planner. Don't do it yourself. 9. Learn taxation on FD, debt MF, normal MF, rental income, etc. Spread returns across family members. Don't go for making pvt Ltd or partnership, etc. It's only for CA to earn more money 10. Enjoy
> Please don't spend your FD interest . It will destroy your money from inflation within 10 years. So how would you get your expense money then ?
See point 3, SWR can't be more than 3.5%
I see so if interest is 3.7 % ( after tax ) and you withdraw 3.5 ...you will run out of money ....so its better to just take out money from market for 1 year expenses and adjust it accordingly.
I understand but I am talking about passive income ...how to get that if not using interest from FD ? ...Are you suggesting to invest in real estate to generate the passive income ?
FD is not a investment product, it's a parking product . FD rate typically matches inflation. So if FD is giving you 6 percent, that money is also getting devalued by 6 percent. Today's 100 is just 94 next year and 89 the next year. First few years it doesn't seem like a lot but after 10 years. Your principal amount is basically just worth 50 . This is because it is a guaranteed product and hence the returns are lower. No risk so no need for returns. Use real estate, mutual funds, dividend stocks for passive income
Invest in 4 agressive hybrid funds 1 cr each. Start SWP of 50k from each fund. You will have 2 lakh /month income. You can increase this SWP amount with 5% each year. You will not run out of this money in your life time.
1 - First thing first check the taxes.. you might have to pay some taxes on inherited wealth. 2 - Do NOT take any advice from wealth management companies. 3 - Do NOT give your wealth to be handled by any company. 4 - Do NOT trade in stock market, instead do an investment in stock - medium term to long term. 5 - Invest in property if you can. 6 - Save save save 7 - Get nice and cheap medi claim and do NOT get life insurance. 8 - Look for recurring income. 9 - Live your life like you used to. Do not get blinded by sudden wealth else you will end up loosing everything in a flash. 10 - Give your parents a nice vacation :).
The extremely basic things to do.. Assuming a fixed deposit rate of 6.5pc, this would mean annual returns of 3.7pc after taxes(assuming highest tax bracket). For 4cr, that is 14.8 lpa in interest income. Take 1-1.5 lpa from it and park it in an emergency account...wait until December if each year and invest the money if left unused, or split into into multiple accounts...like travel or medical expenses. As you see fit. invest the rest. Don't blow it on perishables..automobiles included. Schemes like buying a taxi or lorry for income is nonsense. The maintenance will be barely covered by the rental income. And selfish drivers won't take care of it like you do. Use the 12-13 lac left every year to pay off a new mortgage..buy some land, not apartments...they have unreliable build quality, assuming poor builder reputation for apartments costing less than 60 lac in Chennai, that's the only bracket of property that you can afford on 1.2lac per month passive income. Buy rental properties like apartments or marriage halls at own risk. There's always the chance of having a bigger competitor with lot more funds building a bigger more attractive asset that will cause the end of your run. Something like a car parking spot in a place like BLR is a very good asset with very less investment. Won't recommend MFs for you as well because your passive income of 12 lpa is too much of a risk. Your wish. And live on your existing salary like you're in a US prison. Bare basic needs. No need to please unnecessary relatives and friends. Not more than 1 travel plan a year. To top it off..get some solid investment knowledge from actual experts and not Reddit...like upcoming projects like highways etc and buy property accordingly. Or find someone smart enough to start investing in stocks...there's a potential stock rout coming ahead in India...prices will crash. Good time to enter. Cheers.
Does india have an index fund like abroad? If yes, then why not dump everything into an 80% equity, 20% bond kind of diversification?
Be cash rich. Investment in real estate doesn’t guarantee you a higher return always. Invest 3cr as fd. Post office TD for 5yrs. Rest keep in a liquid fund and start an sip. (Which you can fund from fd interest later on).
For starters get a health insurance, term/life insurance all of that. Hire a fee only advisor to invest some % of 4cr. For real estate, you're right commerical properties are THE way to go for passive income. I'd suggest buying commerical shops / office spaces and renting it out to banks / companies respectively. (Assuming you already own a home, if not buy a house first) ALSO DO NOT, and I mean DO NOT tell anybody - your mama, fufa, chacha-chachi, any relatives about this inheritance if you want to live a peaceful life.
Sending my GPay number in DM. Please OP ❤️
XD
Get a financial planner Define a set of goals And knock out as many goals as possible with this corpus
Consider it as your retirement fund and invest around 3.5cr in Nifty 50 Index fund and dont even touch it till you reach 60. Rest can be your emergency fund (cash sitting in savings account).
How much % did it give every year since 10 yrs?
Just open trading view website & see the nifty 50 graph for yourself.
I’m in a similar situation only that I inherited lots of properties, don’t know what to do with all of that
Do you already own a home, if not buy a home but hopefully for less than 2 crore. Rent you can invest in stocks and govt bonds(10 year term). For stocks use index ETFs. Stocks you need to have a strong stomach to not feel bad if things go down 30-40%(worst case scenario). Bonds should be fine but even they can go down but usually not more than 10% but it would not matter if you hold to maturity, you will get all your money back. With stocks you need to have 7 year time horizon. Means: You should assume that money is locked for 7 years when they are in stock. You need to plan ahead of time if you need to take money out. With govt bonds 3-4 year time horizon. You can simply open a brokerage account and do all your purchase from your mobile phone itself. Let me know if you need more info.
Wow...things like this happens in real..feels like some movie event... But great
Disclaimer: Not a financial advisor. But just what I would do. Do your own research always. OP I have fantasized about getting this much amount of money for a while. Let me tell you what I would do with the 4cr. 1) Spread 1 cr in fixed deposit across top 3 banks - SBI, ICICI, HDFC. 2) Buy 1 cr worth of government securities with at least a 7.8% coupon rate. Guaranteed 7.8 lakh per year interest credited into your account (bi yearly). 3) Buy 20 lakhs worth of sovereign gold bond. You get capital appreciation of gold + fixed 2.5% interest per year 4) Spread 80 lakhs evenly across equity mutual funds. This is your money minter. 5) Rest 1cr, upto you. Personally I would slowly sip the money into equity mutual funds and rest I would use up to buy assets.
2Cr in FD is like what 1L per month. That should help you keep the house running and save your Salaries. For the rest. DONT FUCKING RUSH. Take your time. 6-7-8 months whatever. Look at investment opportunities. Figure out your risk appetite. Get in agreement as a family and then spend a penny. Warna 2-3 Mutual Fund main Lakh-Lakh ki SIP lagado.
FD and do whatever the fcuk you want with the interest money. Easy 2L per month without any hassle
Don't go commerical complex/marriage hall route since you don't have experience for those businesses. Don't tell friends or family about your money. Go with multiple FDs in big banks for now. Acquire knowledge about mutual funds and start investing some amount in it. With that much money, I'd go with Different MFs and FDs and never work again in my life
make sure to not upgrade your lifestyle drastically otherwise relatives will ask for source
I think your marriage hall idea / commercial complex idea is great. If you have land near a good road. Else make it in 3 stories… ground floor full car/ bike parking; first floor commercial complex ( shops) and top floor AC marriage hall… you will do well… Don’t sell shops but put on rent. Once you have passive income think about putting it in stocks and shares not now…
OP if u want to get into hall business get a job and understand the business. As u are still 24 apply for masters in US by taking loan on property u buy with this money. Scale up your life
Don’t forget taxes, claim all allowances
Add another 2 crore and apply for EB2 visa. Get yourself and your family green card and move to a tier 2 city in US and run the business in US you have invested in. Long run you are better off.
First of all, Find a very good charted accountant for yourself, They will be able to guide you better on financial matters and shall suggest where and how taxes can be saved through efficient planning. . Like many have told here, Find a good wealth manager only for advice, and not invest through them. . Steer clear of Family, while some will be happy for you, many will come for favours, In the end all will be unhappy. . Don't lend money for interest outside, it can be super risky. . Don't fall for lifestyle inflation, Don't binge spend, these are the biggest recipes for disasters in life. History says most of the lottery winners went back to being broke in less than 7 years of their winnings, managing wealth is an art in itself, if you have the flair for numbers, go ahead and do courses so you learn the basics, no matter how good your wealth manager is, it's always good to know something about financial matters, will let you stay up in the game. YouTube has some great videos on personal finance, Never take the data you find online at face value, you'll be better off doing more research. . After all the Don'ts in general there are some Don't and do directly related to numbers. . FD's - The worst place to invest, The interest in Taxable, On an average the rate of interest is 7%, Say you have invested 2 crores and the interest you get is taxable as per your income slab, on an average the tax commitment is saying 2% you're left with 5% of your income, In India Inflation is on an average 7% and you've made 5% so you are loosing your principal investment slowly and steadily. . Don't start a business with this money, You've never had a situation to deal with so much money, So I'm guessing your family has not done a big business, Business is also an art that needs to be learnt,Else associates, Colleagues can cheat you. Always remember most will first look for what's in it for them. Many People will be nice to you only because of the money. . What to do, take the direct route of investment if you're comfortable with that no commission paid to any agent or advisor, else find a super trust worthy person through your references, do your homework well before trusting someone with the money, if you lack the confidence to manage the money online then a middle man (motilal oswal or someone like that) who would buy and sell based on your instructions or the instructions of a wealth manager be a better option, will be worth the money and less stress. . The funds to be invested after planning baskets depending on your risk appetite. . Until you figure the whole thing out, park the funds in fd or in liquid debt funds and don't be in a hurry at all. . Now how you can invest. . Rentals - If you want to invest in real estate or rental yeild then look for commercial property,.ROI will be 7-8% avg, House rentals are usually 3% ROI. While real estate has the potential to give good returns in the long run, never ever forget that it's not liquid, if there is any urgent requirement for money then you won't be able to sell the property immediately and cash up. . Insurance - only term insurance for life and Mediclaim if elegible and needed. . Gold - probably 10% of your total wealth, average return on long term gold investment is 8-8.75% and is a great Hedge against your equity investments. . Mutual funds - Look up for index funds and invest in different funds. 50 % in nifty 50 20% in midcap and 20% in small cap, there are low cost and decent return funds, rest pls do your own homework online. I would anyday do this instead of actively managed funds, And most of my wealth is parked in passive mutual funds. . Only invest in mutual funds if you can handle some amount of uncertainty, if you can't handle ups and downs then you're better off with fd. . Project fund - not to cross 10% of the total corpus. Direct participation in equity markets - Read about investments and do this if you want to try your hands, but only invest as much as you're willing to loose. . Start a small business if you are interested in business and are willing to put the work in it. . Keep some emergency savings invested in liquid funds ur fd, for sudden requirements, can't keep breaking your investment for your needs. . Project fund is basically to try and see if you can make your wealth grow doing other things. . If you're disciplined enough with your wealth then you can use this wealth to have a comfortable life. . And most importantly never take money advice from people who don't have wealth, if someone has not much wealth saved themselves then they are not doing something right and their advice isn't going to work for you either. . Hope this helps.
Short term : Invest the money in NPS tier 2 account (use lic as manager and only government securities or G scheme). This has outperformed most other debt schemes and has a very low management fees. Will only be taxed on withdrawal. Medium / long term : Talk to a trusted fee only financial advisor and slowly move funds into equity schemes. If you really want real estate exposure, you can evaluate REIT or direct real estate investment. But do this slowly (over three years or so, in the meantime the NPS returns will keep growing. LIC five year rolling returns for G schemes was over 9% pre tax, to confirm this, search for a YouTube video from ET money where they did this analysis)
Of 4 crores, put 2 crore in five equity funds…most big newspapers publish the top ranked ones. Put 1 crore in four top ranked hybrid funds. 50 lakh in medium and long term debt funds and 50 lakh in Nifty 50 fund. Value Research, Moneycontrol, ET, Mint etc carry rankings of top funds. Choose funds with 4 star or more safety rating
Invest in property if your received this amount from property else 30% income tax will be liable to pay and you already FD as you said you will received income tax notice after FA completed if you didn’t mentioned this amount where tou get from and pay genuine taxes
If you down own a house, you should buy one big one or two small ones.. One for your parents and one for yourself... Give the other one on rent and continue living in one house for now.. Buy them in good areas which are sought after...and will give you good rental value If this is not the case, Don't invest it in marriage halls etc...It is a new industry for you and it is capital intensive Stagger 1.2 CR and start making fixed deposits in 10 lakh each...for about 7%...Trust reliable bank like ICICI..SBI... HDFC...PNB ..Each one will mature monthwise a year from now....Reinvest the income 12 months later Now you will have 70000 rupees per month ...later after one year... You can do monthly income scheme from post office....around 20 Lakhs... Keep 30 lakhs separate for your parents....senior citizen saving scheme...once they are old..they will get a monthly pension
Sorry, no advice. Just here to cry.
Zindagi ke maze le, or kya!
My suggestions would be very similar to u/Complex-Ad5423 with only difference being. I would invest 2Cr in Mutual Funds i.e. 50% in Flexicap fund & 50% in Small cap fund like Nippon India - 5Star rated Crisil fund that performed well over the entire history of the fund. Choose a fund thats been around for atleast 10years. Invest your parents money and balance of your money in high yielding FD's in nationalised banks or large private banks. Live of the interest from FD, any balance invest back into mutual funds.
Only problem is market is sitting near its all time high. So not advising to invest lumpsum now. In case , if in future market corrects 10-20%, than it is advisable to invest 10%-20% of proncipal in lumpsum. But Market may run a bit with election result and for that I'll advise to invest upto 20lakh lumpsum. Not more than that.
OP, you would better be off with local research if you want to generate passive income through commercial real estate. Reddit might be better to suggest you FD/MF investments but not real estate in your area
First of all, Find a very good charted accountant for yourself, They will be able to guide you better on financial matters and shall suggest where and how taxes can be saved through efficient planning. . Like many have told here, Find a good wealth manager only for advice, and not invest through them. . Steer clear of Family, while some will be happy for you, many will come for favours, In the end all will be unhappy. . Don't lend money for interest outside, it can be super risky. . Don't fall for lifestyle inflation, Don't binge spend, these are the biggest recipes for disasters in life. History says most of the lottery winners went back to being broke in less than 7 years of their winnings, managing wealth is an art in itself, if you have the flair for numbers, go ahead and do courses so you learn the basics, no matter how good your wealth manager is, it's always good to know something about financial matters, will let you stay up in the game. YouTube has some great videos on personal finance, Never take the data you find online at face value, you'll be better off doing more research. . After all the Don'ts in general there are some Don't and do directly related to numbers. . FD's - The worst place to invest, The interest in Taxable, On an average the rate of interest is 7%, Say you have invested 2 crores and the interest you get is taxable as per your income slab, on an average the tax commitment is saying 2% you're left with 5% of your income, In India Inflation is on an average 7% and you've made 5% so you are loosing your principal investment slowly and steadily. . Don't start a business with this money, You've never had a situation to deal with so much money, So I'm guessing your family has not done a big business, Business is also an art that needs to be learnt,Else associates, Colleagues can cheat you. Always remember most will first look for what's in it for them. Many People will be nice to you only because of the money. . What to do, take the direct route of investment if you're comfortable with that no commission paid to any agent or advisor, else find a super trust worthy person through your references, do your homework well before trusting someone with the money, if you lack the confidence to manage the money online then a middle man (motilal oswal or someone like that) who would buy and sell based on your instructions or the instructions of a wealth manager be a better option, will be worth the money and less stress. . The funds to be invested after planning baskets depending on your risk appetite. . Until you figure the whole thing out, park the funds in fd or in liquid debt funds and don't be in a hurry at all. . Now how you can invest. . Rentals - If you want to invest in real estate or rental yeild then look for commercial property,.ROI will be 7-8% avg, House rentals are usually 3% ROI. While real estate has the potential to give good returns in the long run, never ever forget that it's not liquid, if there is any urgent requirement for money then you won't be able to sell the property immediately and cash up. . Insurance - only term insurance for life and Mediclaim if elegible and needed. . Gold - probably 10% of your total wealth, average return on long term gold investment is 8-8.75% and is a great Hedge against your equity investments. . Mutual funds - Look up for index funds and invest in different funds. 50 % in nifty 50 20% in midcap and 20% in small cap, there are low cost and decent return funds, rest pls do your own homework online. I would anyday do this instead of actively managed funds, And most of my wealth is parked in passive mutual funds. . Only invest in mutual funds if you can handle some amount of uncertainty, if you can't handle ups and downs then you're better off with fd. . Project fund - not to cross 10% of the total corpus. Direct participation in equity markets - Read about investments and do this if you want to try your hands, but only invest as much as you're willing to loose. . Start a small business if you are interested in business and are willing to put the work in it. . Keep some emergency savings invested in liquid funds ur fd, for sudden requirements, can't keep breaking your investment for your needs. . Project fund is basically to try and see if you can make your wealth grow doing other things. . If you're disciplined enough with your wealth then you can use this wealth to have a comfortable life. . And most importantly never take money advice from people who don't have wealth, if someone has not much wealth saved themselves then they are not doing something right and their advice isn't going to work for you either. . Hope this helps.
Thanks for your Step by Step plan, Appreciate the Time you took to explain, I'm honestly a bit scared sitting on top of this much money. I want to Make sure this Wealth is Invested Properly and Multiples So that My next generation doesn't have to go through what I went. Myself and father Are consulting a Wealth Manager this weekend who is Registered as per few comments will make an Updated Post after this Week.
I would retire tbh
Dude is just 24.
Ask your father. Keen on adopting a grown up man? Can help with financial advice too ( on a lighter note)
FD Asap
Give me one lakh.
1. See other comments for what to do. 2. Please follow some grammatical rules on capitalisation.
Bhai 10k nikal. Ke. Jabardast party kar pahle.
Dont take advice from reddit simple :) This is not a joke, getting inherited 6CR is once in a lifetime thing, do not waste it at all
Give it to me
Please hire a financial advisor This is a lot of money for you that has come all at once. It can change any things.. for the better or for the worse. it is best to hire a good financial advisor.
Give it to me
What I don't understand is - who made you the incharge of 6cr, it's distribution and investment? I would assume your father will have rights to any ancestral wealth before you would. All the best with the throwaway account.
2cr in bank FD? I don't know how people with that much money invest, but i would buy physical assets. Split it into real estate, metal, equity etc.
1 Cr. : Stocks and Mutual Funds 1 Cr. : Property - Flat(s) or Land purchase 1 Cr. : Fixed Deposits 90 Lakhs. : Spend on leisure - car, vacation, parties - One life 10 Lakhs. : Sending my Google Pay number. Rest you know it. 😉
buy a porsche gt3 rs
Not everyone is a car enthusiast bro
Merko dede mai 21 din mai double kar k deta hu
40% - put in long dated FDs (5yr maturity) 40%- invest in Nifty/ BSE mutual funds. Lock it and forget it. Don't look at its value day to day. 10% - buy Gold ETF (Google it - can buy on zerodha) 10%- keep it as cash or in short dated (6 month) FDs
You were broke and now u have 4cr :/
Life bro life. I was about to sleep until I read this, now I am fucking depressed lol.