Boost Regular Income from Existing Investments

Many investors tend to hold their investments for the long term, often for purposes like retirement or funding their children's education. During this period, the actual cash (money deposited into the client’s bank account) is typically, with most gains appearing as unrealized (paper) profits. Let's explore how to create consistent cash flows from existing investments.

As a wealth management firm, we focus on assisting clients in generating regular income from their current investments with minimal risk. These investments may include shares, mutual funds, gold, or fixed deposits. Investors can continue to enjoy the benefits of long-term investments while also receiving regular income from short-term investments through “Option Strategies” (detailed in the Short-Term Investment section). The anticipated return from these short-term investments is 2-3% per month, translating to over 20% annually.

Long-Term Investments

Shares / Mutual Funds: 

Approved shares and mutual funds can be utilized for short-term investments, provided they are held in the investor's Demat account. Investors will continue to benefit from capital appreciation, dividends, and bonuses.

Fixed Deposit  and Debt Fund: 

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Fixed deposits often yield lower returns compared to real inflation rates. With current inflation exceeding 3%, fixed deposits are offering returns below this threshold, resulting in negative adjusted returns.

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A debt fund is a type of mutual fund that invests in fixed-income instruments such as government and corporate bonds, treasury bills, and certificates of deposit, offering a low-risk investment option with stable returns.. These funds are managed by big banks and finance firms.

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Gold:

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Many individuals invest in physical gold. To reduce gold imports, the RBI (Reserve Bank of India) has introduced Gold Bonds, which can be purchased at the current market price. Investors benefit from capital appreciation upon selling and receive 2.5% annual interest. Gold bonds, issued by the RBI, are secure and eliminate storage concerns. For capital appreciation, there are no tax implications, and gold bonds are held in the client's Demat account.

Short-Term Investments

Low-risk Option Strategies

Options are financial instruments traded on stock exchanges, and the options market in India is substantial, with daily turnover exceeding 1 lakh crore. Major participants include large banks, foreign institutions, and high-net-worth individuals. Option strategies can be tailored to generate cash flows even in declining markets. Each strategy outlines maximum profit, maximum loss, and probability of profit, with risk being predefined and limited.

Advantages:

• No additional capital is needed; existing investments like shares, mutual funds, debt funds, government bonds, and gold bonds can be utilized.

• Risk is limited and predefined.

• No share purchases are required.

• Cash flows can be generated in upward, downward, or range-bound markets.

• Investments are short-term, ensuring monthly cash flows to the client’s bank account.

• All transactions occur in the client’s trading account, allowing for easy access and monitoring.

• Expected annual returns of 2-3% per month, exceeding 20% annually, in addition to returns from existing investments.

• Service fees apply only if the annualized return exceeds 10%.

• According to income tax regulations, short-term returns are classified as business income, allowing clients to deduct various expenses as business costs.

• There is no lock-in period; clients can withdraw funds as needed.

**Disclaimer:** Actual returns will depend on the performance of the option strategy.