I have Rs 30 lakh and need Rs 30K–Rs 35K monthly for 6 years: What’s the safest income plan?

I have Rs 30 lakh in hand and need to generate a stable monthly income of Rs 30,000–Rs 35,000 for the next 5–6 years to support a family of five. We own our home, have no loans, and live frugally — basic food, utilities, and occasional medical costs. One child’s college is covered by scholarship; the other is doing low-cost open learning. We’re not interested in stocks or risky ventures — safety and consistency are key. What’s the best way to split this ₹30L to achieve the income goal without depleting the entire corpus? Prefer low-risk, tax-efficient options like SWP, SCSS, or FDs.

Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance

A practical structure for your Rs 30 lakh would be to allocate around Rs 20–22 lakh to dynamic bond funds and set up a Systematic Withdrawal Plan (SWP). These funds typically yield around 7% to 7.5% annually post-tax, generating approximately Rs 15,000 per month in returns. While this alone won't meet your income target, you can still withdraw Rs 20,000–Rs 25,000/month by partly drawing from the principal, ensuring a steady flow for 5–6 years with minimal risk and potential tax efficiency.

The remaining Rs 8–10 lakh can go into bank fixed deposits with monthly interest payout, offering 5%–6% post-tax. This adds another Rs 5,000–Rs 6,000 per month. Together with the SWP from bond funds, your total monthly income can comfortably reach ₹30,000–₹32,000 over the next 5–6 years, without immediate capital depletion.

Over this period, you will withdraw between Rs 21.6–Rs 25.2 lakh. Your principal is expected to remain largely intact, leaving a buffer of Rs 5–8 lakh by the end of 6 years. This ensures you have funds available for future needs or emergencies, even as inflation—likely to average around 5% to 6%—gradually erodes purchasing power.

If you're open to some level of risk, consider allocating Rs 2–3 lakh to index equity funds, such as Nifty 50 or Sensex ETFs. Since your investment horizon is 5–6 years, even limited equity exposure can potentially boost long-term returns and help beat inflation. Keep this portion untouched during the income phase and review annually along with your broader allocation.

Investment options suggested:

Dynamic Bond Funds with SWP (Systematic Withdrawal Plan)

Allocation: Rs 20–22 lakh

Expected Post-Tax Yield: 7%–7.5% annually

Purpose: Primary income source through monthly withdrawals

Tax Efficiency: Gains taxed as long-term capital gains if held >3 years

Bank Fixed Deposits (FDs) with Monthly Interest Payout

Allocation: Rs 8–10 lakh

Expected Post-Tax Yield: 5%–6% annually

Purpose: Supplement monthly income with stability

Liquidity: High, low risk

Optional – Index Equity Funds (Nifty 50 / Sensex ETFs)

Allocation: Rs 2–3 lakh (if comfortable with some risk)

Purpose: Long-term inflation hedge

Note: To be left untouched during income phase and reviewed annually

These options are geared toward capital preservation, monthly cash flow, and low-to-moderate risk, aligning well to generate Rs 30,000–Rs 35,000 per month for 5–6 years without significantly depleting the corpus.