Can Rs 1.15 Cr Corpus Fund Rs 2 Lakh Monthly?

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Please ask your questions HERE and rediffGURU Naveenn Kummar, an AMFI-registered, IRDAI-licensed, qualified financial planner, and founder of Alenova Financial Services, will answer them.

Deepa: Dear Naveenn, I am just retired at the age of 60 yrs with no liability of EMI and of course no pension as well. I have requirement of around 200,000 INR/month and wish to seek your opinion on the same.
a) I have corpus in MF/Shares/RBI bond of around 1,15,00,000. I am planning to seek 20K/month as SWP from here b) FD in bank is around 2,25,00,00 on quarterly pay-out of interest c) PPF of around 21,00,000....so far no action on this. d) ULIP and others 20,00,000.... so far no action on this. So far quarterly payout and SWP do not bring to the level of 200,000 INR/month. Let me seek your opinion and way forward best regards.

Now that you have entered retirement, this is an important phase where your financial decisions need to be approached in a holistic and well-structured manner.

At this stage, the focus should not only be on generating monthly income, but also on ensuring long-term sustainability, capital protection, and peace of mind.

As advised, it would be beneficial to consult a Certified Retirement Advisor who can study your complete financial situation in detail and guide you with a structured plan suited to your needs.

This would include understanding your family situation, their financial independence, your post-retirement goals such as travel, lifestyle or charitable interests, your preferred place of settlement, and how you would like to plan legacy transfer over time.

Health insurance also plays a very important role at this stage. It is essential to review whether you and your family members are adequately covered, so that any medical contingency does not disturb your financial stability.

A detailed analysis would also cover maintaining an adequate emergency fund, aligning investments to your requirements and risk appetite, and incorporating your personal wishes into the plan. This would include creating a Will and ensuring proper succession planning for your family.

From an investment perspective, a few key actions can be considered.

• On maturity of your PPF, you may look at deploying the funds into the Senior Citizens Savings Scheme, which can provide stable and predictable income.
• If you are currently invested in ULIPs, it would be advisable to continue them till maturity and then exit. Fresh investments into ULIPs may be avoided. If life cover is still required and eligibility permits, a plain term insurance plan would be a more suitable and cost-effective option.
• If you are planning systematic withdrawals from mutual funds, the schemes and withdrawal rate need to be carefully evaluated so that your income needs are met without gradually eroding your principal.
• Also, since a significant portion of your funds is parked in fixed deposits, please review whether the exposure in each bank is within the DICGC insurance limit of Rs 5 lakh per bank, including joint holdings. If required, spreading deposits across banks can help reduce risk.
• At the same time, it is important to take into account the financial position of your family members and any additional needs or contingencies that may arise over time including will and sucession planning

The overall objective is simple: to create a structure where your income is steady, your capital is protected, and your financial life remains stress-free.

Vijay: Dear Sir. I had invested in the NFO (in February 2021) of SBI Retirement Fund. After completion of five year locking period in February, 2026, the Units will now be available/free, for redemption. The investment was aimed for long term to build up a retirement portfolio for my two children who works in private without any pension provision in their employment. This fund has so far given moderate returns during last five years.
Please suggest whether I should continue the investment in the same above SBI fund OR to have better investment returns it is advisable to re-invest the redemption value in different category of Mutual funds with obvious goal of a long term investment of over 20-25 years.
Diversification in different MFs will also facilitate to avail yearly benefit of long term capital gain on redemption and then re-investment. Please also suggest names of MFs in different categories.

Atal pension yojana can be considered for future pension. Please enroll for PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) and PMJAY (Ayushman Bharat Pradhan Mantri Jan Arogya Yojana) for your children. SBI Retirement Fund you can continue without redeeming or switching to avoid long term captial gain. You can explore tax harvesting 1.25 lakhs per year and reinvest in flxi, balanced and multi-asset along with fresh investments.

Please consult your financial advisor for expert opinion for selection and review from time to time and also suggest portfolio for creation of corpus and take SWP as alternative to pension.

Please note to stay invested in mutual fund for 7-15 years horizon long term; short term it will be volatile and you cannot expert returns immediately.

Rajesh: Hello and namaskar.. I am 36 years old. Need your guidance in the following funds- (a) parag parekh flexi cap - 7500/- per month (B) GROWW nifty midcap 150 index fund -2500/- per month (C) mirae asset ELLS tax saver -5000/- (D) pGIM india mid cap opp. Fund -5000/- (E) quant small cap fund-4000/- (F) ICICI prudential equity and debt fund - 3000 (G) HDFC FLEXI CAP FUND - 4000 (H) Uti nifty 50 index fund - 5000
Additionally I want to invest 1 lakh annually. Tell me where to invest this additional amount. These funds are ok or I should exit from any fund and invest in any other fund. I want to get 2 crore till the end of 2035. Am I going on the right track. kindly suggest

Avoid index fund and concentration in ELSS funds, you can consider flexi and multi-assets for new investments. Small cap you can consider bandhan, Axis or Nippon.

Please consult your financial advisor for selection and review from time to time.

• You can ask rediffGURU Naveenn Kummar your questions HERE

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.