My friend Taresh wanted to invest Rs 1 crore in a secure debenture instrument that would yield an annual return of Rs 6 lakh and return the principal after 30 years. He wanted to create a passive income source that would pay a fixed amount periodically during retirement.
I recommended investing in a mutual fund that invests in similar debentures, as it would offer superior risk management, liquidity, and return. Risk would decrease due to diversification across multiple instruments.
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