विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Ramalingam Kalirajan |10872 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 20, 2025
Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jun 19, 2025
Hi Ramalingam Sir, hope this message finds you in best of health and spirits. I need your help with regards to 2 queries. Query 1 . I was working in abroad from last 3 yrs and had converted my savings account to NRE/NRO account and even my demat was converted around 4 months back. I returned to India at the end of April as I lost the job due to company closure. ? Currently my resident status is NRI should I change it back to resident (I returned back a month back). As per rules I am aware resident status is considered if we are in India for 180days or more. ? Handling bank accounts, when to convert them back to savings. Query 2.Related to setting up SWP to cover monthly expenses. (to be started next year mostly) Currently I have 66L in saving (10 in FD), 8L in gold, 6L in ELSS mutual fund, 1L in Vedanta, 1.3 in Yes bank. Another 5L kept for regular monthly expenses. Planning to invest 75L to mainly cover monthly expenses until I am able to find another job.Current expenses per month around 60-70 thousand. How would you suggest investing with moderate risk , my idea was to use Aggressive Hybrid funds and HDFC Balanced fund which have atleast >20% CAGR in last 3yrs. ? Investing via lump-sum in stages or SIP over next 10-12 months. Thank you so much Sir for your guidance. Regards
Ans: You have shown maturity in planning ahead even after a job loss.
This mindset will protect your wealth and give peace during transition.
Let’s take your two queries one by one.
Query 1: NRI Status, Bank Accounts, and Demat Conversion
You have returned to India end of April after working abroad for 3 years.
Your bank and demat accounts are now under NRI status.
Now that you are back, here’s how to proceed.
Understanding Residential Status – For Tax and Banking
As per Income Tax Act, your status depends on number of days in India.
If you stay 182 days or more in the financial year, you become a Resident.
Till then, you remain NRI for tax purposes.
But bank compliance is handled differently by RBI rules.
Once you return with intention to stay, you become Resident but Not Ordinarily Resident (RNOR).
Action Plan for Bank Accounts:
Inform your bank about change in residency intention.
Convert NRE and NRO accounts into Resident Savings Account.
Close or redesignate the NRE FD if any.
Interest from NRE FD becomes taxable after status changes.
Convert NRI demat account to Resident demat.
Do this by submitting a declaration, PAN, Aadhaar, etc.
Don’t delay this for 6 months.
Delay causes tax mismatches and compliance issues.
Till then:
You can continue using NRO account for Indian income.
Avoid new NRE deposits.
Query 2: Investment Strategy for Rs. 75 Lakh with SWP in Mind
You want to invest Rs. 75 lakh to generate monthly income.
Current monthly expenses are Rs. 60,000–70,000.
You already have separate buffer of Rs. 5 lakh for short-term use.
That’s a smart cushion to start with.
Let’s build a 360-degree moderate-risk plan.
It should give monthly income and preserve capital.
Also offer inflation-beating growth without high stress.
Create 3 Investment Buckets
Use a bucket strategy.
This divides your corpus into parts with different purposes.
Each part supports the other for smooth cash flow.
Bucket 1 – Short Term (6–12 Months Need): Rs. 10–12 Lakh
Use this for next 12 months of SWP or withdrawals
Use ultra-short-term or low-duration debt mutual funds
Do not invest this in equity or volatile hybrid funds
Withdraw Rs. 60K–70K monthly from this for 1 year
This protects you from market fall in initial year.
Also gives time to slowly build long-term corpus.
Bucket 2 – Medium Term (2–5 Years): Rs. 20–25 Lakh
Invest in hybrid mutual funds with 30–40% equity
Choose balanced advantage or equity savings funds
Begin SWP from this portion after 12–15 months
Gives steady returns with low volatility
This bucket gives monthly cash flow after Bucket 1 is used.
It also rebalances between debt and equity automatically.
Bucket 3 – Long Term (5+ Years): Rs. 38–40 Lakh
Invest in large cap and flexi cap mutual funds
Start STP from liquid fund over next 12 months
Avoid lump sum in equity funds to avoid timing risk
Keep invested for long-term growth
This bucket builds real wealth.
Helps you fight inflation.
Later supports your retirement income after 55–60.
SWP Strategy to Manage Monthly Expenses
How to setup:
Start withdrawing monthly from Bucket 1 immediately
After 1 year, activate SWP from Bucket 2
Withdraw Rs. 60K–70K per month
Increase by 5% yearly to match inflation
After 5–6 years, shift to Bucket 3 for SWP
Why this works better:
Avoids pressure on equity in early years
Gives time to build corpus through growth
Avoids selling when market is down
Gives reliable and regular cash flow
Use only growth option of mutual funds.
Never use dividend option – it is taxed fully.
SWP gives capital gains tax only on redeemed units.
Your Plan to Use Aggressive Hybrid Funds – Need Caution
You mentioned funds with >20% CAGR in 3 years.
This return is short-term and not sustainable.
Disadvantages of choosing high past return funds:
Past performance is not future guarantee
Aggressive hybrid funds can fall like equity in bad years
Risk is higher than needed for income generation
May give you anxiety during withdrawals
Use balanced advantage or equity savings hybrid category.
They adjust asset allocation based on market conditions.
These are more suitable for regular income.
SIP or Lump Sum – Which Is Better Now?
Since markets are uncertain, SIP or STP is better.
This avoids entering market at peak.
Also gives rupee cost averaging benefit.
Recommended method:
Keep Rs. 15–20 lakh in liquid funds
Start STP into equity funds over next 12 months
SIP monthly from this into long-term funds
Avoid lump sum into equity
Hybrid funds can be used partly as lump sum
This avoids regret if market corrects in next 6 months.
Keeps your peace of mind intact.
Use Regular Plans via Certified Financial Planner
You must avoid direct plans.
Though expense ratio is low, the cost of mistakes is higher.
Problems with direct mutual fund plans:
You miss rebalancing support
No help in reviewing fund performance
No tax-saving guidance
No withdrawal strategy built for SWP
Easy to panic in market fall without expert advice
Why use regular plan through Certified Financial Planner:
Strategy matched to your goals
Emotional support during volatility
Tax-efficient SWP planning
Discipline and structure for early retirement
Better fund selection and monitoring
When done wrong, even best fund can fail you.
But when managed well, even average fund can deliver peace.
Additional Suggestions for 360-Degree Safety
Buy health insurance if not already covered by ex-employer
Add top-up policy if existing coverage is low
Make nominations in mutual fund and bank accounts
Prepare a will for succession clarity
Keep Rs. 3–5 lakh always as emergency backup
Avoid risky investments like crypto or unlisted shares
Avoid property investment – not suitable now
Focus on liquid, tax-efficient and inflation-beating assets
Finally
You’ve taken strong first steps after coming back from abroad.
You’ve built a solid cash reserve and want to plan income smartly.
You are also thinking long-term and cautiously.
Avoid investing everything in equity or chasing past returns.
Avoid aggressive hybrid funds just because of 3-year performance.
Use a SWP-friendly hybrid and equity strategy with planned withdrawal path.
Use STP to enter equity funds slowly.
And always keep guidance from a Certified Financial Planner.
This plan can support your lifestyle today and your dreams tomorrow.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
This mindset will protect your wealth and give peace during transition.
Let’s take your two queries one by one.
Query 1: NRI Status, Bank Accounts, and Demat Conversion
You have returned to India end of April after working abroad for 3 years.
Your bank and demat accounts are now under NRI status.
Now that you are back, here’s how to proceed.
Understanding Residential Status – For Tax and Banking
As per Income Tax Act, your status depends on number of days in India.
If you stay 182 days or more in the financial year, you become a Resident.
Till then, you remain NRI for tax purposes.
But bank compliance is handled differently by RBI rules.
Once you return with intention to stay, you become Resident but Not Ordinarily Resident (RNOR).
Action Plan for Bank Accounts:
Inform your bank about change in residency intention.
Convert NRE and NRO accounts into Resident Savings Account.
Close or redesignate the NRE FD if any.
Interest from NRE FD becomes taxable after status changes.
Convert NRI demat account to Resident demat.
Do this by submitting a declaration, PAN, Aadhaar, etc.
Don’t delay this for 6 months.
Delay causes tax mismatches and compliance issues.
Till then:
You can continue using NRO account for Indian income.
Avoid new NRE deposits.
Query 2: Investment Strategy for Rs. 75 Lakh with SWP in Mind
You want to invest Rs. 75 lakh to generate monthly income.
Current monthly expenses are Rs. 60,000–70,000.
You already have separate buffer of Rs. 5 lakh for short-term use.
That’s a smart cushion to start with.
Let’s build a 360-degree moderate-risk plan.
It should give monthly income and preserve capital.
Also offer inflation-beating growth without high stress.
Create 3 Investment Buckets
Use a bucket strategy.
This divides your corpus into parts with different purposes.
Each part supports the other for smooth cash flow.
Bucket 1 – Short Term (6–12 Months Need): Rs. 10–12 Lakh
Use this for next 12 months of SWP or withdrawals
Use ultra-short-term or low-duration debt mutual funds
Do not invest this in equity or volatile hybrid funds
Withdraw Rs. 60K–70K monthly from this for 1 year
This protects you from market fall in initial year.
Also gives time to slowly build long-term corpus.
Bucket 2 – Medium Term (2–5 Years): Rs. 20–25 Lakh
Invest in hybrid mutual funds with 30–40% equity
Choose balanced advantage or equity savings funds
Begin SWP from this portion after 12–15 months
Gives steady returns with low volatility
This bucket gives monthly cash flow after Bucket 1 is used.
It also rebalances between debt and equity automatically.
Bucket 3 – Long Term (5+ Years): Rs. 38–40 Lakh
Invest in large cap and flexi cap mutual funds
Start STP from liquid fund over next 12 months
Avoid lump sum in equity funds to avoid timing risk
Keep invested for long-term growth
This bucket builds real wealth.
Helps you fight inflation.
Later supports your retirement income after 55–60.
SWP Strategy to Manage Monthly Expenses
How to setup:
Start withdrawing monthly from Bucket 1 immediately
After 1 year, activate SWP from Bucket 2
Withdraw Rs. 60K–70K per month
Increase by 5% yearly to match inflation
After 5–6 years, shift to Bucket 3 for SWP
Why this works better:
Avoids pressure on equity in early years
Gives time to build corpus through growth
Avoids selling when market is down
Gives reliable and regular cash flow
Use only growth option of mutual funds.
Never use dividend option – it is taxed fully.
SWP gives capital gains tax only on redeemed units.
Your Plan to Use Aggressive Hybrid Funds – Need Caution
You mentioned funds with >20% CAGR in 3 years.
This return is short-term and not sustainable.
Disadvantages of choosing high past return funds:
Past performance is not future guarantee
Aggressive hybrid funds can fall like equity in bad years
Risk is higher than needed for income generation
May give you anxiety during withdrawals
Use balanced advantage or equity savings hybrid category.
They adjust asset allocation based on market conditions.
These are more suitable for regular income.
SIP or Lump Sum – Which Is Better Now?
Since markets are uncertain, SIP or STP is better.
This avoids entering market at peak.
Also gives rupee cost averaging benefit.
Recommended method:
Keep Rs. 15–20 lakh in liquid funds
Start STP into equity funds over next 12 months
SIP monthly from this into long-term funds
Avoid lump sum into equity
Hybrid funds can be used partly as lump sum
This avoids regret if market corrects in next 6 months.
Keeps your peace of mind intact.
Use Regular Plans via Certified Financial Planner
You must avoid direct plans.
Though expense ratio is low, the cost of mistakes is higher.
Problems with direct mutual fund plans:
You miss rebalancing support
No help in reviewing fund performance
No tax-saving guidance
No withdrawal strategy built for SWP
Easy to panic in market fall without expert advice
Why use regular plan through Certified Financial Planner:
Strategy matched to your goals
Emotional support during volatility
Tax-efficient SWP planning
Discipline and structure for early retirement
Better fund selection and monitoring
When done wrong, even best fund can fail you.
But when managed well, even average fund can deliver peace.
Additional Suggestions for 360-Degree Safety
Buy health insurance if not already covered by ex-employer
Add top-up policy if existing coverage is low
Make nominations in mutual fund and bank accounts
Prepare a will for succession clarity
Keep Rs. 3–5 lakh always as emergency backup
Avoid risky investments like crypto or unlisted shares
Avoid property investment – not suitable now
Focus on liquid, tax-efficient and inflation-beating assets
Finally
You’ve taken strong first steps after coming back from abroad.
You’ve built a solid cash reserve and want to plan income smartly.
You are also thinking long-term and cautiously.
Avoid investing everything in equity or chasing past returns.
Avoid aggressive hybrid funds just because of 3-year performance.
Use a SWP-friendly hybrid and equity strategy with planned withdrawal path.
Use STP to enter equity funds slowly.
And always keep guidance from a Certified Financial Planner.
This plan can support your lifestyle today and your dreams tomorrow.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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