Saturday, April 19, 2014

How to make a full time passive income with help of mutual fund?

Today I tell you something exited about mutual fund.
I always Like Dividend option in mutual fund if you read my book then you already knew about my logic's for a Dividend paying mutual fund. 
So now i tell you a great idea which teach you that " How to make a full time passive income with help of mutual fund?"
 Most of my Friend like Growth option in mutual fund but they are wrong because if Market down NAV of all mutual funds also down with market so all of your profit go away if you are invested in a growth mutual fund or you are choose a dividend reinvestment option in dividend mutual fund. 
So i always advice to book profit in a growth mutual fund with help of my formula of profit booking in mutual funds. New readers first read this formula here 
Now I tell you power of a regular dividend paying mutual fund. 
Suppose we start a 1000 Rupee per month SIP in HDFC TOP 200 FUND ( DIVIDEND ) in January 1999 so as per this dividend history of HDFC top 200 dividend option, since Jan 1999 to April 2014 We get these dividends in this fund
Record DateDividend (Rs/unit)
6-Mar-144
7-Mar-134
7-Mar-124
10-Mar-114
11-Mar-104
5-Mar-093
7-Feb-085
7-Feb-075
17-Feb-064.5
15-Dec-043
8-Mar-041.5
31-Oct-032.5
15-Jul-032
15-Mar-021.2
23-Feb-012
25-Aug-002.1
24-Mar-002.5
7-Jan-002.5

In these 184 months of 1000 rupee per month SIP  our total investment amount is INR 184000 and we get total INR 411516 tax free dividends in these 15 years.
Apart from dividends value at NAV of our holding investment is 451375 . 
I give you a excel sheet of this calculation download it , and after reading this excel sheet you see that in last 5 years we invest only 12000 in a year and get near 40000 per year as tax free dividends so we get near INR 2350 per month as a passive income
Click here to Download detail excel sheet of this research 

My Dis-closer:- My wife hold and continue a SIP of 1000 per month in HDFC top 200 mutual fund dividend option.

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