You will have to invest Rs 3 lakh just once, after the age of 40 you will get a 'pension' of Rs 31 thousand every month.

Nowadays people have started looking at funds indirectly linked to the market as fixed income. Today we are going to tell you a method with the help of which you just have to invest Rs 3 lakh today and forget about it till you retire. Then you will see how your return matches your monthly pension.

In today's time, people start looking for pension as soon as they start a job. Some people start saving monthly while others start investing in pension funds. The mathematics of returns are different among the investment options currently available in the market. If you talk about the stock market, returns range from negative to 200-1000 percent. In one line, it is not so easy to predict returns by betting on a stock. You cannot see this as fixed income. But nowadays people have started looking at funds indirectly linked to the market as fixed income. Today we are going to tell you a method with the help of which you just have to invest Rs 3 lakh today and forget about it till you retire. Then you will see how your return matches your monthly pension.

What is the method?

To set up a monthly pension, you will have to invest Rs 3 lakh today for the next 20 years. You do not have to make this investment in any pension fund, but in a mutual fund. You can deposit your money by selecting any best index fund. In today's time, mutual fund houses easily give returns of 12-15 percent. There are some funds which give returns of up to 30-40% per year.

Suppose your age is between 20-25 years and you invest for the next 20 years i.e. till the age of 40-45 years. If you get an average return of 15% from mutual fund, then in the next 20 years you will create a fund of Rs 49,09,961 (approximately 49 lakh 10 thousand). Then when you go to retire, withdraw that money and put it in FD.

there will be fixed income

Returns from FD are between 7 to 8 percent. Suppose you get 7.5% return on FD, then you will earn interest of Rs 3,78,737 per year, which will be Rs 31,593 (31.5 thousand) per month. That means you will easily be able to earn Rs 31,500 per month.