Suggestion Required on Building Fund for Chartity

[kirukan]

Hello All,

I would like to build a fund which will yield yearly income which I can spend for charity. I should be able to increase the fund as and when I require.

I would like to start with spending 10000 Rs yearly for charity(Helping poor in education,donating old age homes etc).Giving this amount from my account wont be a big deal now.But I want to continue for ever irrespective of my financial condition and need.So I would like to build a fund which will yield this amount every year for me.

Please suggest
For getting 10000Rs a year How much I should Invest and where to invest(Non speculative investments,capital guarantee).
I should be able to add on the investment whenever I can.

Ex: I am investing 5L to start with I will add 10K or 20K every year or when ever possible.It should increase my yearly return for charity expense...

Awaiting your valuable suggestion.

Kirukkan.

[pavalamani pragasam]

Private schools I know have deposits endowed by a donor in some name-usually someone he reveres like father, mother-to provide fund for some needy student. The yearly interest is used to buy books or prizes or any such memorable aid.

[app_engine]

Kirukkan,
For getting a mere 10,000 a year, I don't think you need to invest amounts such as 5 lacs. I think even NSC / NSS kind of investments should be able to yield at least 5% per annum which means you should get what you want with just 2 lacs investment. Even a SBI fixed deposit of 2 lacs should be able to fix that amount (which is almost as good as investing in gov funds - not so easily shaken).

If you need returns at percentages more than that some research will be needed

[kirukan]

Thanks PP Madam and app_engine

Kirukkan,
For getting a mere 10,000 a year, I don't think you need to invest amounts such as 5 lacs. I think even NSC / NSS kind of investments should be able to yield at least 5% per annum which means you should get what you want with just 2 lacs investment. Even a SBI fixed deposit of 2 lacs should be able to fix that amount (which is almost as good as investing in gov funds - not so easily shaken).

If you need returns at percentages more than that some research will be needed

Can I increase FD amount in between...I am looking for combination of FD and Savings account. I should be able deposit money anytime and I shud get yearly returns based on capital every year .Single account maintenance. Interest rate better than Savings account is enough.
Typical kirukans expectation hahaha...


Kirukan

[app_engine]

Can I increase FD amount in between...I am looking for combination of FD and Savings account.

You may want to talk to a SBI executive or one of those independent agents who specialize in NSS and similar govt savings schemes, which should possibly allow recurring deposit schemes with periodic interest payout.

Such people'll have the "current" knowledge (rather than my dated / hearsay / website knowledge). Thru them, you can get to know of the various possibilities.