Stories
9K Monthly Interest, 44 Lakh Profit: The Rich Person's Double Engine Investment Idea!
- •A 'double engine' strategy combines safe investment with good returns, ideal for wealth creation.
- •This strategy involves using the Post Office Monthly Income Scheme (MIS) and Mutual Fund SIP together.
- •Investing 15 lakh rupees in Post Office MIS yields a fixed monthly interest of 9,250 rupees.
- •By consistently investing this monthly interest into a Mutual Fund SIP for 15 years, one can accumulate 44 lakh rupees.
- •After 15 years, the original 15 lakh rupees from MIS plus 44 lakh rupees from SIP results in a total of 59 lakh rupees.
Key Questions Answered
You deposit a lump sum of up to 15 lakh rupees in a joint Post Office Monthly Income Scheme account with a 5-year lock-in, earning a 7.4% interest rate that yields a fixed income of 9,250 rupees every month. Instead of spending this monthly income, you automatically reinvest it into Large Cap or Index Mutual Funds via SIP for 15 years to compound your wealth.
At the end of 15 years, your mutual fund SIP portfolio value will reach approximately 44 lakh rupees assuming an average annual compounding return of 12%, with a total investment of 16,65,000 rupees. Additionally, your original 15 lakh rupees kept in the Post Office is returned, bringing your total accumulated sum to 59 lakh rupees.
You must renew your Post Office investment every 5 years and maintain it for a total of 15 years while ensuring no monthly installments are skipped. The monthly interest received from the Post Office must be set to automatically deposit into the SIP, and you should choose reliable Large Cap, Index, or Flexi Cap Funds without taking excessive risk.
