How Can I Replace My Salary Through Investing

8/15/2019 How Can I Replace My Salary Through Investing

1/15

7/15/2015 How Can I Replace My Salary Through Investing? - scripbox.com

https://scripbox.com/blog/how-can-i- replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distr ibution&utm_content=replace_s…

How Can I Replace My Salary Through

Investing?

by Sanjiv Singhal 48 Comments ★ Q & A

HOW IT WORKS TOUR TEAM HELP IDEAS CONTACT LOGIN

REGISTER

https://scripbox.com/users/sign-uphttps://scripbox.com/users/sign-inhttps://scripbox.com/pages/contact-us/https://scripbox.com/blog/https://scripbox.com/help/https://scripbox.com/pages/the-scripbox-team/https://scripbox.com/pages/tour/https://scripbox.com/pages/how-it-works/https://scripbox.com/blog/category/q-a/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/#disqus_threadhttps://scripbox.com/blog/author/sanjivsinghal/http://scripbox.com/


2/15


https://scripbox.com/blog/how-can-i- replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distr ibution&utm_content=replace_s… 2

Recently, we received this query by E-mail.

“I am 22 and earn Rs 18,000 per month. At what rate should I invest and how

should I proceed further to earn income that could replace or be equal to my

present salary.”

– Rajesh (Name changed)

We found this interesting on a number of levels. For starters, at 22, Rajesh is starting

to secure his financial future early in his career. Second, he understands the

importance of having a defined corpus that generates income to replace his own –

that’s making money work for you.

In this article, we will discuss how you can go about building a corpus that willgenerate an income to replace your current salary.

How to create a corpus that replaces your income

In order to generate Rs 18,000 per month, let’s start with the following assumptions

You invest 30% of your salary. In this case Rs 5,400.

You invest in equity mutual funds with an expected return of 14% annualised over the

long term

You re-invest the accumulated corpus in a bank FD with an expected return of 8%

per annum

Taxes are not taken into consideration

Rajesh will need 14 years to accumulate the required corpus of Rs 28.18 lakhs

which when invested in a Bank FD will give you Rs 18,790 per month.

Monthly SIP(Rs)

Investment OptionExpected Rate of Return

YearsRequired

5400 Equity Mutual Funds 14% 14

5400Bank RecurringDeposit/PPF

9% 18

This is great. Rajesh could achieve a corpus that replaces his current salary by the


3/15



time he is 36.

However, there is a problem with this approach. We have failed to take inflation into

account. What inflation does is reduce the value of money over time. With a given

sum of money, you will be able to buy significantly less 14 years from now. To put it in

numbers, Rajesh’s current Salary of Rs 18,000 will be worth only Rs 6,128 in 14 years.

How to create a corpus that replaces your income – adjusted for inflation

To get a corpus that is capable of generating this inflation adjusted (higher) income,

Rajesh will need to save for longer. Let’s see what it will take to do this. We will go

with the same assumptions as before but also consider inflation.

You invest at least 30% of your salary- (INR 5,400 in this case)

Investments happen in equity mutual funds with an expected return of 14%

annualised over the long term

You re-invest the accumulate corpus in a bank FD with an expected return of 8% per

annum

Tax implications are not taken into account

Inflation rate is 8% per annum

Rajesh will need 28 years to accumulate the required corpus of INR 2.16 crores,which, when reinvested, will give him Rs 1,44,209 per month – an amount that is

equivalent to his current salary of Rs 18,000 adjusted for inflation over 28 years.

Is there a faster way to achieve this?

Yes. And that involves increasing your saving every year by, say, 10%. This is in-line

with the increase in your income.

If you do this, you will only need 18 years to accumulate the required corpus of INR

1.03 Crores which could then generate a monthly income of Rs 69,108 – an amount

equal to your current salary adjusted for inflation over 18 years.

Monthly SIP (INR) Investment Avenue Rate of Return Years Required

5400 Equity Mutual Funds 14% 18


4/15



Name E-Mail Address GET UPDATES NOW

5400 Bank Recurring Deposit/PPF 9% 28

That’s good advice for Rajesh, but what can I do?

We know every one’s different so we created a comprehensive calculator. Find out

how you can get your savings to replace your income using our downloadable excel

worksheet.

Key Take Away

Start investing as early as possible

Invest in high-return long term asset classes like equity mutual funds to achieve your

goals faster

Always factor inflation into your calculations

Use our downloadable excel worksheet to find out how your money will grow

It’s ideal to increase your saving/ SIP amount every year by at least 10% or more- in-

line with your increase in income

Take into account the tax implication of your investments. Not all investments are tax-

free during maturity (We’ve written many articles on this topic)

The Easiest Way to Invest in Mutual Funds

Use Scripbox to automate your investment in mutual funds.

Scripbox takes care of all the heavy lifting- from which mutual funds to invest in, to

easy online investing and withdrawal, to annual review and rebalancing of your

portfolio.

Stop thinking and start investing today .

ENJOYED THIS ARTICLE ? GET UPDATES! IT’S FREE!

Learn more about growing your money through proven investing principles.

Automate investing with Scripbox.

Start here.

https://scripbox.com/https://scripbox.com/users/sign-uphttps://scripbox.com/pages/tour/https://scripbox.com/blog/income-tax-rates/https://scripbox.com/blog/why-i-can-never-catch-up-with-abhay/https://scripbox.com/blog/wp-content/uploads/2015/03/Scripbox-Worksheet-Grow-your-money.xlsx


5/15



“Get Your Facts

Right!” 7

Misconceptions

About Mutual Funds

12 Ways to Conduct

an Elegant Wedding

without the High ..

2 Reasons Why Bank

Fixed Deposits Alone

Won’t Make You ..

20 daily habits that

set rich people apart

About Sanjiv Singhal

CEO of scripbox, Sanjiv has worked at the intersection of finance & technology for

over 22 years. Having held leadership positions with Citibank, ABN AMRO Bank &

Kotak Mahindra, Sanjiv set up scripbox along with his friends Atul & Ravi with the aim of

simplifying personal finance for everyone. You can also follow Sanjiv on twitter @sanjivsinghal

You may also like

48 Comments 1

• •

TruthSayer-Soothsaye r •

all investment gurus r d same wolf packs operating across d world to promote stock market investing

and lazy money making , wen d markets go bust dese gurus go in2 hibernate mode , n most or all f d

sheep going towards MF mania today wil b losers at d end f d rainbow while dese wolves who giv crap

advice wil laugh deir way to super rich status , LAZY humans must wake up n invest in small business

work hard ,take real risks, giv employment to d needy n see hw money wil chase u , wake up dumbos ,

Scripbox ,cn u dare 2 hv a truthful article suggesting clearly tht money cant b made on ponzi schemes

lyk stock markets ,bcz markets r meant to suck money out f d smal gys n keep enriching d ambanis n

tatas ,

https://scripbox.com/blog/get-your-facts-right-7-misconceptions-about-mutual-funds/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://disqus.com/home/forums/scripbox-blog/https://disqus.com/home/inbox/https://disqus.com/home/forums/scripbox-blog/https://scripbox.com/blog/get-your-facts-right-7-misconceptions-about-mutual-funds/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://disqus.com/home/inbox/https://disqus.com/home/forums/scripbox-blog/https://scripbox.com/https://scripbox.com/blog/20-daily-habits-set-rich-people-apart/https://scripbox.com/blog/20-daily-habits-set-rich-people-apart/https://scripbox.com/blog/2-reasons-why-bank-fixed-deposits-alone-wont-make-you-rich/https://scripbox.com/blog/2-reasons-why-bank-fixed-deposits-alone-wont-make-you-rich/https://scripbox.com/blog/12-ways-to-conduct-an-elegant-wedding-without-the-high-costs/https://scripbox.com/blog/12-ways-to-conduct-an-elegant-wedding-without-the-high-costs/https://scripbox.com/blog/get-your-facts-right-7-misconceptions-about-mutual-funds/https://scripbox.com/blog/get-your-facts-right-7-misconceptions-about-mutual-funds/


6/15



• •

Kushal Kumar •

You seems to have lost huge money in stock market ;-) ;-)

There is always a caveat - investment should be done in MF for long term. Also, no where in the

article it has been mentioned to invest in Stock market, which I find a bit conservative and at the

same time sensible because it very difficult to track investment by laymen.

• •

Deb •

I don't understand, how lopsided your views are. Please get a wholesome picture, don't follow

some biased views of lunatic.

Without stock market and subsequent investment by people, there is no economy, forget running

your business.

Get out of our dumb mode at the earliest.

• •

Par tha Sarathi Basu Baul • What TruthSayer-Soothsayer has said is entirely right. And they do not forget to employe

like you. You people are also from the same herd of wolf, just covered with a sheep skin

• •

Consultant4Telecom •

this might be mathematically right but there are appreciating assets which needs to be part of the

investment and mutual fund etc must not be more than 20% as they are double edge sword. instead fixe

interest things like long term fd/bond etc with high assured returns can be explored. at these levels for

novice person this may be biggest goof-up. Pls avoid half baked info to mass which may be lifeshock fo

some & loss making for others.

• •

Sreedhara Murthy B N •

Savings depend on the place you reside. In places like Mumbai, Delhi etc. it is not possible to lead a

normal life with a meagre salary of rs.18000. Then where the question of saving 30%. These calculation

are based on assumptions. In reality it is highly impossible.

• •

Home State Bank •

Sage advice for anyone looking to get into investing. Thanks for sharing!

gokul •

Best is invest on land free of litigation of decent size and hold it for 20 years. It will fetch you the return b

beating the inflation at contemporary market rate . For tier 1-3 cities , this definitely will be great bet .Also

best investment is invest on house with 20 years loan so that post retirement rental burden will not be

there .. If money left , then 30% FD, 30-40% on SIPs /Mutual funds / 20-30% on return earned insurance

Term insurance standalone is a loss of money . Rather pay extra 7-8K where by same coverage will be

https://disqus.com/by/Consultant4Telecom/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2010643496https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2010643496https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2003926225https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2022250509https://disqus.com/by/disqus_mXfyyKigip/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1993543588https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1993543588https://disqus.com/by/Consultant4Telecom/https://disqus.com/by/disqus_mXfyyKigip/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2133049277https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2134202710https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1986510646https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2010643496https://disqus.com/by/Consultant4Telecom/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2003926225https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2022250509https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2003926225https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1978920197https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1993543588https://disqus.com/by/disqus_mXfyyKigip/


7/15



• •

.

at least 5-6 months salary as liquid able investment to meet any exigencies. All these are great if your

income is more than 50-60K per month in a tier II or tier III city . Otherwise with current inflation , all your

income will go to your household expense only . if Tier I , the cap is 1 Lakh p.m at least.

• •

Alex •

What if, the question is to replace salary with investment and receive immediate returns that enable me

quit the job immediately?

Assume 50k as salary and age 28.

• •

Amit Shahane •

I think investment in FD & PPF @ fixed interest rate is way better than investment in MF or Equities

where returns are not fixed.

• •

Raghu •

Beware of MF. Where will you get 14% constant return in MF for long term? And many time it goes

negative also. And MF management co. will keep charging 2-3% Admin charge, even you earn negative

MF are false marketing. The financial co. get fixed return for 2-3% either they increase or decrease your

money. In start of MF they will manage to show the good gain. Once its sell closes... you have to exit

after few years of loss.... but MF co. will get constant return for themselves.

• •

Prashant Kumar •

If you looking at the Index fund for anywhere in the world market ... with a time frame of 25-30

years, it always atleast give return from 13-16 %... The expense ration is very low in that... 0.15%. That is almost negligible

• •

QQ987 •

Would like to know details of your portfolio sanjiv singhal, after that only i will consider financial advice

from you.

• •

scripboxblog • Mod

I invest my money entirely through Scripbox.

Here's the Scripbox performance track record. https://scripbox.com/pages/mut...

venkataramanaiah ramu •

Since Rajesh's age is quite small and his present salary income is also reasonable which would enable

him to make a good percentage of around 30 percent as monthly investment, and also since expectation

of monthly income after retirement is also quite small, it would not be difficult for suggesting him a way fo

achieving his objective.Only the weaker side would be that if he gets 18k per month after his retirement,

https://disqus.com/by/venkataramanaiahramu/https://disqus.com/by/scripboxblog/https://disqus.com/by/disqus_Q0GE09m37L/https://disqus.com/by/amitshahane/https://disqus.com/by/disqus_25RW2RaKfp/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2002120473https://disqus.com/by/venkataramanaiahramu/https://scripbox.com/pages/mutual-fund-portfolio-performance-track-record/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2008679866https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2008844714https://disqus.com/by/scripboxblog/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2008679866https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2020071417https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2130954575https://disqus.com/by/disqus_Q0GE09m37L/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2020071417https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2089650659https://disqus.com/by/amitshahane/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2113987266https://disqus.com/by/disqus_25RW2RaKfp/


8/15



• •

could be like some 15% of his monthly requirement at the time of his retirement taking the inflation and fa

in the rupee value etc., into account. It would be better for Rajesh to understand this and modify his nee

at the time of his retirement as an amount equivalent to the present 18k per month which would translate

to around 75k per month and that would probably enable him to lead a life more or less of the standard o

life he is now enjoying.

• •

Pankaj •

Good but you have not disclosed for how long this income would keep coming? If you keep withdrawing

the income part for your expenses.

• •


Hi Pankaj,

You can continue withdrawing the amount as long as the interest rate for the bulk amount

invested is on par with the interest rate.

The money would get depleted sooner if the interest rate is lower than the inflation rate.

• •

Gopinath R •

Mutual Fund investment for longer period is ideal for all times to come.

• •

Abhijit Gadgil •

Overall - well written - but I think you missed out an interesting fact - Rajesh's income from investment

should also grow with inflation when he earns it. So taking 69000 and earning it for rest of his life is notgoing to help at all. Realistically - with a dividend yield of 1-2% for something to replace your salary - you

income should be 50-100 times the dividend. So to earn an income of 69000 pm approximately 8L - the

corpus should be 4-8 Cr! So the capital gains would take care of inflation if the dividend yield remains

constant. (I am assuming all return expectations are met - which is not very impossible - but certainly no

trivial). So in general - replacing salary income from investments is not a viable idea, unless one can

generate alpha of his/her own! :) That doesn't mean one shouldn't save and invest wisely - just that one

should set realistic expectations.

Raghu •

I'm sorry,but compounding 14% return on equity funds does not work in real life. What is taken as the

return here (14%) is the change in market values between 2 periods and not cash flows to investors-

therefore, in reality, there is actually no cash flow that is getting compounded year on year to generate

these fantastic returns-it is different for a FD, which is a contractual investment, where there is a fixed

interest flow which can be seen as compounding (so long as there are no defaults and investors don't

consume away the interest payments)- while it is true that equities and MF give better returns over the

long run, we should not use an excel spreadsheet to lull us into complacency. In the same example, the

MF returns can drop to 10% or 5% or even negative over this long investment period (because it is only

the market value changes that are taken as returns and not cash flows). If we plug in such differential

https://disqus.com/by/abhijit_gadgil/https://disqus.com/by/gopinath_r/https://disqus.com/by/scripboxblog/https://disqus.com/by/disqus_zCTebKIwJ3/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1975729662https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1977118749https://disqus.com/by/abhijit_gadgil/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1979127037https://disqus.com/by/gopinath_r/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1983042329https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2011095791https://disqus.com/by/scripboxblog/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1983042329https://disqus.com/by/disqus_zCTebKIwJ3/


9/15


10/15


https://scripbox.com/blog/how-can-i- replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distr ibution&utm_content=replace_… 10

• •

have the payouts from it that are inflation adjusted year-after-year.

• •

Akshay •

Hi I've invested in LIC money back policy @55000/-per yr with cover of 10 lac and 1.5 lac as money

back every 5th yr.. I've paid 2 instalments till now... Third is due in July.. Should I continue or not.. If I

stop than what amt will I lose??? Please advise

• •

anurag •

If u opt out u'll be getting much less money back than u've given in premiums but anyways it's

better if you stop asap. Neither the cover nor return is worth investing in lic.

• •

Anshuman •

surrender...as for 10 Lakhs term plan u need to pay rs 3000 per year...so rest Rs 50k +if u put

even in FD u will earn more than 1.5 laks in three year...if u invest the same in mutual fund...retu

would be better...

• •

SP •

Whenver you surrender policy you lose lot of money. Do it only if you do not have choice. Never

trust LIC agents, wealth managers and even the author of this article. The risk is always on you,

they have nothing to lose and only to gain.

• •

Fisherman •

Please watch for the last year total amount I will pay as per you spreadsheet.

For my case , the total amount of 65th year (selected as my retirement age) divided by 12 gives a value

which is three times more than what I expect to get as monthly return as per your computation. That is

something I might not like at that age ..

• •

Adarsh Thampy •

The monthly expected return shown in our computation is an inflation adjusted amount. This

means that the monthly amount you get when you are 65 will be much more.

To help you understand better, we show you the value of money in todays terms taking inflation

into account.

• •

sailor •

Equity /Mutual funds are risk prone and Bank FD rate will not be 9%, hence even slighly altering the

above parameters, the results would vary greatly.

https://disqus.com/by/disqus_rA30wVMZCL/https://disqus.com/by/adarsh_thampy/https://disqus.com/by/shreekanthmprabhu/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1945448208https://disqus.com/by/disqus_rA30wVMZCL/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1945490561https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950266035https://disqus.com/by/adarsh_thampy/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1945490561https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950400505https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1974515533https://disqus.com/by/shreekanthmprabhu/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950400505https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1975496008https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950400505https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2072637137https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950400505


11/15



• •

Sampat Bhansali •

Do you really believe 18years down the line FD rates would be 9%

• •

disqus_diu3zjbe4x •

No, it could be 2 or 3% if we turn to a 'developed' nation

• •

Prabhav Kamat •

if we turn to a 'developed' nation and 2 or 3% is the FD rates, Inflation rates will definitely

be below 2%

• •

Himanshu •

Thanks for such nice explanation... one question... which Equity Mutual Funds is good for investment? i

current scenario there are numbers of them?

• •


yes, there are thousands of schemes. At https://Scripbox.com we recommend a short list of jus

funds - 4 equity, 2 debt and 2 tax saving so that you can invest without much confusion.

• •

Sampat Bhansali •

There are many good schemes, you have to filter basis your expectation and risk taking ability

• •

saugata •

I have started investing in the LIC ( Traditional ) at the age of 30 of rs 72000/- /annum plus 10,000/- pera

annum in PPF and also stated SIP from this yr of 1500/- . my current age is 37. will it give me the desire

financial stability pre/post retirement?

Gururaja •

Asset Allocation is the Key factor. All investments like traditional insurance plan in Company like

LIC, term insurance, Mutual Funds, to Some extent Gold or Gold ETF, Real Estate, FD, RD ETC

is must in LIFE. LIC has sovereign Guarantee by Government which FD in nationalize banks arenot enjoying. What ever the amount of FDs, only you are assured of 1 lakh per branch...That way

safety also comes into picture. Mutual Funds are best for long term. Please use it wisely if your

Goals are less than 15 years. SIP is the best option instead of single investment. But between

these..don't forget term insurance .....

Allocations to Debt Instruments upto 20 to 30% (of your total savings) if you are below 40 and

balance to the high growth equity. A mix of large cap, hybrid Funds, Balance Funds is a better

option.

As per the studies the average life of a mutual funds is 29 months in India.For some, other Slow

Growth but Safe investments will work to make them decipline. So we must believe in this syste

https://disqus.com/by/disqus_Vhq4m33J2k/https://disqus.com/by/sbhansali/https://disqus.com/by/scripboxblog/https://disqus.com/by/disqus_diu3zjbe4x/https://disqus.com/by/sbhansali/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922872469https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-2045294699https://disqus.com/by/disqus_Vhq4m33J2k/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922872469https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1923146497https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1941669512https://disqus.com/by/sbhansali/https://scripbox.com/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1923146497https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1943428150https://disqus.com/by/scripboxblog/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1923146497https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950369745https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1956937598https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1941668572https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950369745https://disqus.com/by/disqus_diu3zjbe4x/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1941668572https://disqus.com/by/sbhansali/


12/15



• •

first before making investment. If you invest with lot of doubts, it will consume most of your

earning time! So have a belief system in everything you do..

To conclude, please do not bias with traditional plans, mutual funds...as long as you know your

limit..But don't hang to only one investment...Consult your Financial Planners...Have nice

investment time ahead... (try to understand my views and not quality of English..)

• •

Anshuman •

Increase your mutual fund sip as much as possible...this will take care of your retirement

• •

rakesh •

What is the insurance cover you are getting from LIC? I assume around 6-7 lacs. Is that what

your life is worth. As a thumb rule you should have insurance cover 10 times of your annual

income. If I were you, I would take cover of 50 lacs at 9000 per annum and rest would go in MF.

In fact that is what I do.

Educate yourself about MF and then you'll know the power of equity, my dear friend. This kind of

mistake is done by most of the people who are financially illiterate.

• •

Eye •

investing in LIC was a bad decision!

You can invest the same amount in MFs and get way higher ROI(Return of interest) compared to

LIC.

• •

harri • Good write up. May I suggest that the issue of inflation during the period of final income generation be

also considered. The accumulated corpus may generate income equal to salary in year 1 but will fall

short due to inflation from year 2 onwards. To counter that, the income generated should be 10% more

than the salary with this extra 10% being reinvested to take care of inflation in following years.

• •

Adarsh Thampy •

Dear Harri,

You are right in that from year 2 onwards, you have lower returns due to inflation. However, theris also a portion of your current income that you are saving today. That % you are saving today,

you can save during retirement to protect yourself from future inflation during your retirement

period.

https://disqus.com/by/adarsh_thampy/https://disqus.com/by/harriharri/https://help.disqus.com/customer/portal/articles/1657951?utm_source=disqus&utm_medium=embed-footer&utm_content=privacy-btnhttps://disqus.com/websites/?utm_source=scripbox-blog&utm_medium=Disqus-Footerhttps://disqus.com/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922664742https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1950268230https://disqus.com/by/adarsh_thampy/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922664742https://disqus.com/by/harriharri/https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922872469https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1926738513https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922872469https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1947087979https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1922872469https://scripbox.com/blog/how-can-i-replace-my-salary-through-investing/?utm_source=outbrain&utm_medium=content-distribution&utm_content=replace_salary&utm_campaign=content-marketing#comment-1975492049


13/15



Scientifically selected funds. Automatic

rebalancing. Zero fees. One click

investing.

http://e.scripbox.com/new-to-mutual-funds/http://e.scripbox.com/retire-early-ebook/https://scripbox.com/users/sign-uphttps://scripbox.com/pages/mutual-fund-portfolio-performance-track-record/


14/15



SEARCH

Search this website…

NEVER MISS AN UPDATE

AUTOMATE YOUR MUTUAL FUND

INVESTING WITH SCRIPBOX

Be the first of your friends to like this

scripbox130,403 likes

Like Page Sign Up

https://www.facebook.com/scripboxhttps://www.facebook.com/scripboxhttps://www.facebook.com/scripboxhttps://www.facebook.com/rakesh.chaudhary.984https://www.facebook.com/drkgowthamanhttps://www.facebook.com/suparna.banerjee.9250https://www.facebook.com/matulimadhusmita.swainhttps://www.facebook.com/amit.s.patil1


15/15


CALL: 1800-200-1265

home

how it works

why

scripbox

tour

help

blog

team

reviews

news

company

contact us

terms of use

privacy

policy

disclosures

ARN-84967

Mutual Fund investments are subject to market risks, read all

scheme related documents carefully. Past performance is not an

indicator of future returns.

© scripbox.com India Private Limited, 2012
https://scripbox.com/pages/ARN/https://twitter.com/scripboxhttp://www.linkedin.com/company/scripboxhttps://www.facebook.com/scripboxhttp://scripbox.com/pages/disclosures/http://scripbox.com/pages/privacy-policy/http://scripbox.com/pages/terms-of-use/http://scripbox.com/pages/contact-us/http://scripbox.com/pages/company/http://scripbox.com/pages/in-the-news/http://scripbox.com/pages/reviews/http://scripbox.com/pages/the-scripbox-team/http://scripbox.com/blog/http://scripbox.com/help/http://scripbox.com/pages/tour/http://scripbox.com/pages/why-choose-scripbox/http://scripbox.com/pages/how-it-works/http://scripbox.com/https://scripbox.com/

Date post:	05-Jul-2018
Category:	Documents
Upload:	sivasankarchinnasamy
View:	224 times
Download:	0 times

How Can I Replace My Salary Through Investing

Documents