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Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Oct 17, 2022

Mutual Fund Expert... more

Question by Vivek on Oct 17, 2022Hindi

Money

I am 43 years old and ventured into MF and equity space a little later in life. Have been investing diligently for the last 6+ years. Please find below my existing portfolio for MFs. I feel I should reduce the number of funds or at least consolidate some of them as there is an overlap between the bluechip ones.

Would like your thoughts/advice on the same. Response is much appreciated. Thank you.
SIPs in progress

Axis Bluechip Fund - Direct Plan (G) - 5000

ICICI Prudential Bluechip Fund (G) - 5000

ICICI Prudential US Bluechip Equity Fund - Direct Plan (G) - 5000

Mirae Asset Emerging Bluechip Fund - Direct Plan (G) - 6000

Navi Nifty 50 Index Fund - Direct Plan (G) - 5000

Navi Nifty Next 50 Index Fund - Direct Plan (G) - 5000

Parag Parikh Flexi Cap Fund - Direct Plan (G) - 5000

SBI Blue Chip Fund (G) - 5000

Axis Mid Cap Fund - Direct Plan (G) - 5000

DSP Mid Cap Fund - Direct Plan (G) - 5000

L&T Midcap Fund (G) - 5000

SBI Small Cap Fund - Regular Plan - (G) - 5000
SIP Discontinued

HDFC Mid-Cap Opportunities Fund (G)

HDFC Childrens Gift Fund - Investment Plan

HDFC Top 100 Fund (G)

Ans: In bluechips, please continue with ICICI Pru Bluechip fund growth

Most of the funds are decent!

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.

MoneyReply

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Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Sep 19, 2022

Question by Vineet - Sep 19, 2022Hindi

Money

I started investing in mutual fund back in 2006 with very small SIP amounts and I am 41 now. Currently, I have a MF corpus of approx 30 lakh, with SIP investments in following schemes, though i myself feel i have invested in multiple fund houses or similar portfolios and need your help or guidance with consolidation and then keep a target of 2.5 to 3 crore in next 15 years through Mutual fund only. Currently I am investing 32500 per month through SIPs only. Sr No Fund Name Start Date Amount 1 HDFC Top 100 Fund Growth 20-Sep-06 1000 2 HDFC Top 100 Fund Growth 05-Dec-13 1000 3 SBI BlueChip Fund Regular Growth 25-Apr-16 1000 4 ICICI Prudential Value Discovery Fund Growth 22-Jul-16 1000 5 Kotak Flexicap Fund Growth 23-Aug-17 1000 6 IDBI India Top 100 Equity Regular Fund Growth 05-Jan-18 1000 7 L&T Hybrid Equity Fund Growth 06-Dec-18 1000 8 L&T Hybrid Equity Fund Growth 07-Jan-19 1000 9 Indiabulls Equity Hybrid Fund Regular Growth 12-Mar-19 1000 10 HDFC Mid-Cap Opportunities Regular Fund Growth 01-Jul-19 1500 11 SBI Magnum MidCap Regular Fund Growth 01-Jul-19 1000 12 ICICI Prudential Bluechip Direct Fund Growth 01-Jul-19 1000 13 HDFC Top 100 Fund Growth 27-Oct-19 1000 14 HDFC Hybrid Equity Fund Growth 27-Oct-19 1000 15 Axis Midcap Fund Direct Plan Growth 16-Dec-20 1000 16 Canara Robeco Equity Hybrid Fund Direct Plan Growth 17-Dec-20 1000 17 SBI Magnum Global Fund Direct Growth 17-Apr-21 1000 18 HDFC Flexi Cap Fund Direct Plan-Growth 17-Apr-21 1000 19 Motilal Oswal Focused 25 Direct Growth 17-Apr-21 1000 20 HDFC Flexi Cap Fund -Direct Plan - Growth Option 17-Apr-21 1000 21 SBI Flexicap Fund Direct Growth 17-Apr-21 1000 22 Motilal Oswal Flexi Cap Fund Direct Plan Growth 24-Jun-21 1000 23 Tata Quant Fund Direct Fund 30-Jun-21 500 24 Aditya Birla Sun Life India Gennext Fund Direct Plan Growth 01-Jul-21 1000 25 ICICI Prudential FlexiCap Fund Direct Growth 05-Jul-21 500 26 Mirae Asset Large Cap Fund Direct Plan Growth 01-Sep-21 1000 27 IDFC Corporate Bond Fund Direct Plan Growth 22-Sep-21 1000 28 ICICI Prudential NASDAQ 100 Index Fund Direct 27-Oct-21 1000 29 HDFC Corporate Bond Fund -Direct Plan - Growth Option 09-Dec-21 1000 30 Aditya Birla Sun Life Corporate Bond Fund Direct Plan Growth 09-Dec-21 1000 31 TATA Digital India Fund Direct Growth 25-Dec-21 1000 32 Parag Parikh Flexi Cap Direct Growth 25-Dec-21 1000 33 Kotak Gilt-Investment Fund Provident Fund and Trust-Growth Direct 28-Dec-21 1000

Ans: The funds that can be continued are 15, 16, 26, 27, 28, 29, 30, 32 and 33; 27, 29, 30, and 33 being debt funds and 15, 16, 28 and 32 being equity funds.

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Mutual Funds Expert - Answered on Oct 10, 2022

Question by swami - Oct 10, 2022Hindi

Money

My age is 27 and i am planning for my retirement so i am investing 20K every month in sip and will step up 10% every year . I am expecting 15% return on my investments. I started investing in MF from march 2022 and I have also investing 10K in EPF and 1.5 L in LIC. I have added all my mutual funds below , please reveiw and share ur opinion. If it’s over diversified suggest me which fund i need to remove from my portfolio. Small cap funds – 4( 6500 ) 1. Axis Small Cap Fund Direct Growth-2000 2. Kotak Small Cap Fund - Direct Plan - Growth (Erstwhile Kotak Mid-Cap) -1500 3. NIPPON INDIA SMALL CAP FUND - DIRECT -1500 4.Quant Small Cap Fund - Direct Plan Growth -1500 Mid cap Funds – 4 (4500) 1. PGIM India Midcap Opportunities Fund - Direct Plan – Growth- 1000 2. Quant Mid Cap Fund – Growth -1500 3. Invesco India Midcap Fund - Direct Plan Growth -1000 4. Axis Mid Cap Fund - Direct Growth -1000 Blue chip & Growth -2 (2500) 1. Mirae Asset Emerging Bluechip Fund - Direct Plan-1500 2. Axis Growth Opportunities Fund Direct Growth -1000 Sectorial Diversification -6 (4500) 1. ICICI Prudential Technology Fund - Direct Plan – Growth - 1000 2. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan Growth -500 3. ICICI Prudential Banking and Financial Services Fund - Direct Plan – Growth -500 4. Mirae Asset Great Consumer Fund - Direct Plan -1500 5. Quant infrastructure fund - 1000 US market (2500) 1. Navi US Total Stock Market Fund of Fund Direct Plan Growth – 2500

Ans: Hello swami. The detailed overview of your MF portfolio indicates over-diversification with 20k SIP. Hence, I would suggest reconsidering, pruning, and reshuffling your portfolio.

As part of the portfolio reshuffle, make sure to have AMC diversification as well.

Limit yourself to 1-2 schemes in each category.

I can see several schemes in different categories for each AMC. I recommend reconsidering the scheme for Navi US scheme to better scheme in same category.

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Nov 16, 2022

Question by Alok - Nov 16, 2022Hindi

Money

Below is my MF portfolio. I am planning to invest for the next 13-15 years for retirement and as well as my son's higher education who is 4.5 years old. I am 36 years old. Please let me know if I can consolidate my investments. Apart from this I have investments in PPF, NPS as well. Fund Name Category Amount/Month Quant Tax Plan - Direct Plan ELSS 4000 Mirae Asset Tax Saver Fund - Direct Growth ELSS 6000 Axis Long Term Equity Fund - Direct Growth ELSS 2000 Kotak Flexicap Fund - Direct Growth Flexi Cap 2500 PGIM India Flexi Cap Fund - Direct Plan - Growth Flexi Cap 4000 Quant Active Fund Flexi Cap 2500 Nippon India Index Fund S&P BSE Index Fund 4000 Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth Large and Mid Cap 2000 Axis Bluechip Fund - Direct Growth Large Cap 2000 PGIM India Midcap Opportunities Fund - Direct Plan -G Mid Cap 4000 Quant Multi Asset Fund Multi Asset 3000 Bank of India Small Cap Small Cap 2000 Canara Robeco Small Cap Fund - Direct Growth Small Cap 4500 Axis Small Cap Small Cap 2000 Quant Small Cap Small Cap 2000 Total 46500

Ans: There are too many funds and consolidation can be done by having only 1 scheme in each category.

Ramalingam Kalirajan |8098 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

Question by anonymous - Jul 24, 2024Hindi

Money

Hi experts, I am still waiting for a response to my question which I asked on 5th July. Please revert Hi expert, over the years I have been investing in mutual. 90% of the funds are the lumpsum amounts which I invested in 2007. A few I have been investing in sip since the last 3-4 years. I want to consolidate and work on having few mutual funds than having many which give varied returns. It will be great if you can help me to ascertain which I can keep and which I can let go DSP-BR India TIGER - RP (D) DSP-BR Top 100 Equity - RP ICDW (D) Franklin India flexi cap fund - IDCW "HSBC Large Cap Fund - Regular IDCW (Formerly known as HSBC Large cap - L&T India Large Cap Fund (D)" Nippon India Growth Fund IDCW plan Nippon India Power and Infra fund SBI Magnum Midcap Fund (D) "SBI Contra Fund (D) SBI Magnum Sector Funds Umbrella Contra" Sundaram Large cap fund regular - IDCW Sundaram Large cap fund regular - IDCW "HSBC Progressive Themes (D) HSBC Advantage India Fund" HDFC Infrastructure Fund (D) Edelweiss Mid Cap Fund (Regular Plan - IDCW Option - Payout) Sundaram Diversify equity fund - Regular - IDCW EBRG - Mirae Asset Large and Midcap fund (formerly known as Mirae asset emerging blue-chip fund) - SIP HDFC Children's gift fund - Regular plan (Lock in) - SIP I looking to build my portfolio by having few mutual funds with extra money in them rather than having many mutual funds and less money in each. Kindly help me out with suggestions

Ans: Reviewing Your Current Portfolio
You have invested in many mutual funds since 2007. Let's streamline your portfolio to focus on a few high-performing funds.

Evaluating Fund Categories
Large Cap Funds
HSBC Large Cap Fund - Regular IDCW
DSP-BR Top 100 Equity - RP ICDW (D)
Sundaram Large Cap Fund Regular - IDCW
SBI Contra Fund (D)
Large Cap funds provide stability and steady growth. Keep funds with consistent performance.

Flexi Cap Funds
Franklin India Flexi Cap Fund - IDCW
Flexi Cap funds offer a balanced approach. They invest across large, mid, and small caps. Retain those with a strong track record.

Mid Cap Funds
SBI Magnum Midcap Fund (D)
Edelweiss Mid Cap Fund (Regular Plan - IDCW Option - Payout)
Mid Cap funds offer higher growth potential but come with higher risk. Retain the best performers.

Sector/Thematic Funds
Nippon India Power and Infra Fund
HDFC Infrastructure Fund (D)
HSBC Progressive Themes (D)
HSBC Advantage India Fund
Sector funds focus on specific industries. They can be volatile. Evaluate their performance and market outlook.

Diversified Equity Funds
DSP-BR India TIGER - RP (D)
Sundaram Diversify Equity Fund - Regular - IDCW
These funds invest in various sectors and companies. Retain those with strong, consistent returns.

Large and Mid Cap Funds

Mirae Asset Large and Midcap Fund (formerly Mirae Asset Emerging Bluechip Fund) - SIP
These funds balance between stability and growth. They are a good addition for diversification.

Children's Funds
HDFC Children's Gift Fund - Regular Plan (Lock-in) - SIP
These funds have a specific goal in mind. They are usually kept for a longer-term investment.

Consolidation Strategy
Reduce Overlap
Consolidate Large Cap funds. Choose one or two top performers.
Reduce the number of Sector funds. Focus on those with a positive outlook.
Keep the best-performing Mid Cap funds. Avoid too many in this category.
Focus on Performance
Retain funds with strong historical performance and potential.
Let go of funds with inconsistent returns or underperformance.
Allocate More to High Performers
Invest more in top-performing funds. This enhances returns and reduces management complexity.
Avoid spreading investments too thin across many funds.
Consider Fund Management Style
Opt for actively managed funds. They offer the potential for higher returns.
Avoid index funds due to their passive nature and lower flexibility.
Benefits of Regular Funds
Investing through an MFD with CFP credentials provides guidance.
Regular funds offer support and advice, unlike direct funds.
Suggested Actions
Large Cap and Flexi Cap Funds
Retain top-performing Large Cap and Flexi Cap funds. They provide stability and balanced growth.
Mid Cap and Sector Funds
Focus on the best-performing Mid Cap funds.
Retain Sector funds with positive outlooks. Evaluate their potential in the current market.
Diversified Equity Funds
Keep diversified funds with consistent returns. They provide broad exposure and reduce risk.
Children's Funds
Maintain investments in children's funds. They are aimed at long-term goals.
Final Insights
Streamlining your mutual fund portfolio is essential. Focus on a few high-performing funds. Consolidate your investments for better returns and easier management. Opt for actively managed funds and regular funds through MFD with CFP credentials. This strategy will help you achieve your financial goals effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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Asked by Anonymous - Mar 12, 2025Hindi

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Hello Iam Hindu and i loved a muslim guy for more than 5 years now he is saying that he cant marry me and his parents are forcing him to settle down So he said me to end everything as there is no future What should i do i m completely broken

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I understand how hard it is to let someone you love go, but if indeed there is no way for him to convince his parents or there is no future for your relationship, it is best to move on. I know it's much easier said than done, but things will get better with time. Focus on yourself, and take small steps- like surround yourself with people who love and care for you, spend more time with your family and friends, pick up a hobby, focus on your studies or career, travel, go out for movies, try new cuisine. While all of these are ways to keep yourself distracted, with time you will find how much these have helped you grow. It's important to give yourself time to heal.
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Asked by Anonymous - Mar 10, 2025Hindi

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Hi, I am 46 years old residing in a B Town in India. I have 2 daughters one 16 years old and second 7 years old. I have Savings of 25 Lakh in my account as emergency find. I have FD of 65 Lakhs. PF, PPF and NPS of 25 Lakhs, Mutual Fund and Shares of 25 Lakhs, Lic policies worth 25 Lakhs, Gold around 1.2 Crores. I have a medical insurance of 20 Lakhs for me and my family, Term insurance of 1Cr. As properties. I own 2 independent houses, 2 flats and 2 plots in Bangalore which has a current value of about 4.5 Cr. In my home town i have 2 Houses, 1 apartment and plots which has a current value of 2.75 Cr. Currently i am drawing a monthly salary of 2 Lakh rupees and get a rent of 30K/ month. I donot have any emi's and my monthly expenses is currently 75K. I am planning to retire at the age of 50. Is my financial condition stable to retire at the age of 50? Thanks for your suggestion in advance.

Ans: Hi,

Lets understand the value of your current Investments at the time of retirement. Below is the list with its current value and (expected rate of return).
Emergency Fund - 25 lakhs (3.5%)
Fixed Deposits - 65 lakhs (7%)
PF/PPF/NPS - 25 lakhs (8%)
MF/Stocks - 25 lakhs (10%)
LIC Policies - 25 lakhs (no change)
Your current investments listed above will achieve a value of 3.5 crore at the time of retirement 4 years from now.

Apart from this you have mentioned properties worth 7.25 Cr. Assuming you will only use/liquidate them if required, so excluding them from consideration for now.

You total income is 2.30 lakhs per month (includes rent) and expenses are 75k per month. So there is potential to add to the above investments for the next 4 years.

I will assume your current expenses are sufficient for the lifestyle you want to continue post retirement.
You will require a corpus on retirement after 4 years to sustain your expenses adjusted with inflation of 6% which will be close to 1 lakh per month (at the time of retirement).
With this starting point, and adjusting for inflation of 6% each year, and life expectancy of 30 years post retirement you need a corpus of approx. 2.5 crore - again assumed this will earn a return of 8% for the 30 years.
If you can invest wisely and generate a slightly higher return of say 10%, the corpus requirement will be 2 crore.

Your current investments at the time of retirement with value of 3.5 crore is sufficient to cover your expenses for the next 30 years inflation adjusted at 6%.
And this is excluding the properties you own and additional investments you can make for the next 4 years.

Summary - You are more than stable as far as your financial state is concerned. You have a strong base to meet your retirement needs and also a potential to create wealth for the generations ahead.

I want to highlight/recommend few points -
1. Increase the medical Insurance for yourself and family to 1Crore as medical expenses will only increase in future.
2. Stop the Term Life Insurance and save the premium for investment. As you have no liabilities and net-worth is high enough to cover any outcomes in life ahead, this premium is a lost cause considering your strong financial state.
3. Revisit the LIC Policies you have and consider surrendering/stopping them if they are not nearing their maturity. They are not giving you enough cover and providing below par returns. So do discuss with a trusted licensed advisor and evaluate them. If they will mature in the next 4 years, ignore this point.
4. Post retirement period is a long duration of 30 years, so do consider getting a good advisor - a Certified Financial Planner who can guide you to plan your retirement well and help you design a portfolio for additional wealth creation as a legacy for your children/dependents.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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Mutual Funds, Financial Planning Expert - Answered on Mar 13, 2025

Asked by Anonymous - Mar 11, 2025Hindi

Money

Hi, I have the following funds part of my SIP and the last 4 funds are my one time lump sum of 35K each and invested sometime in November last year. Are these good to hold (lump sum) and rest as SIP for another 5 years. 1 Kotak Flexicap Fund - Reg Gr 2 Kotak Flexicap Fund - Dir Gr 3 Tata Multi Asset Opp Dir Gr 4 TATA Nifty 50 Index Dir Pl 5 Technology Plan - Direct - Growth 6 Bandhan Sterling Value Fund-(Reg PIn) -Gr 7 Nifty Smallcap250 Quality 50 Index Fund - Dir - G 8 | HDFC Dividend Yield Direct Growth 9 Quant Large and Mid Cap Fund Direct Growth 10 Quant Multi Asset Fund Direct Growth 11 Groww Nifty Non Cyclical Consumer Index Fund Direct Growth 12 Motilal Oswal Midcap Fund Direct Growth Thanks in advance for your guidance.

Ans: You have invested in multiple funds through SIP and lump sum. Holding them for the next 5 years is a good approach. However, it is important to check if your portfolio is diversified, aligned with your goals, and tax-efficient.

Overlap Between Funds
Your portfolio has multiple funds from the same category.

Too many similar funds do not improve returns but make tracking difficult.

Checking fund overlap can help avoid duplication.

Actively Managed vs Index Funds
You have index funds in your portfolio.

Index funds do not offer downside protection in market corrections.

Actively managed funds can outperform the index in volatile markets.

Switching from index funds to actively managed funds can improve growth.

Direct vs Regular Funds
You have invested in direct funds.

Direct funds may seem cheaper, but they lack expert guidance.

Investing through an MFD with CFP credentials ensures better selection and tracking.

Regular funds provide better decision-making support over time.

Sector-Specific and Thematic Funds
You hold a technology fund.

Sector funds are high-risk, as they depend on one industry’s performance.

If the sector underperforms, returns may be negative for years.

A diversified approach reduces risk compared to sector-based investing.

Smallcap and Midcap Allocation
You have smallcap and midcap funds.

These funds can be highly volatile in the short term.

Holding them for 5+ years is necessary to reduce risk.

Ensure you rebalance if the portfolio gets too aggressive.

Multi-Asset and Dividend Yield Funds
Multi-asset funds provide stability during market corrections.

Dividend yield funds are suitable for conservative investors.

These funds help in balancing the portfolio between risk and return.

Final Insights
Reduce overlapping funds and focus on fewer, well-performing funds.

Exit index funds and shift to actively managed funds for better growth.

Consider switching from direct funds to regular funds for expert tracking.

Keep sector funds below 10% of your portfolio to avoid concentration risk.

Continue SIPs in high-quality diversified funds for long-term wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Mutual Funds, Financial Planning Expert - Answered on Mar 13, 2025

Question by Mriganka - Mar 11, 2025Hindi

Money

Can I run my family with 15 k exp and 20k retirement income

Ans: You have a monthly retirement income of Rs 20,000 and expect monthly expenses of Rs 15,000. On paper, this looks manageable, but there are important financial factors to consider. Let us analyse whether this income will be sufficient for the long term.

Cost of Living and Inflation Impact
Expenses will increase over time due to inflation.

If inflation is 6% per year, your Rs 15,000 monthly expenses may double in 12 years.

If income remains Rs 20,000, the gap between income and expenses will widen.

Healthcare and Medical Costs
Medical expenses increase with age.

Even with health insurance, out-of-pocket medical costs can rise.

If a medical emergency arises, your savings could be depleted quickly.

Emergency Fund Requirement
A sudden family emergency can strain finances.

Having at least 2–3 years' worth of expenses in a liquid fund is necessary.

If you do not have an emergency fund, your retirement income may not be sufficient.

Unplanned Expenses and Lifestyle Changes
New financial needs may arise, such as helping family members or home repairs.

You may want to travel, pursue hobbies, or engage in social activities.

A fixed retirement income can make such expenses challenging.

Investment Strategy for Long-Term Security
To beat inflation, invest a portion of savings in growth-oriented assets.

A mix of equity and debt funds will help generate better returns.

A Systematic Withdrawal Plan (SWP) from equity funds can provide a higher monthly income.

Alternative Income Sources
Consider part-time work, freelancing, or consulting if possible.

Rental income or dividends from investments can support retirement cash flow.

Final Insights
Rs 20,000 may be enough now, but inflation and rising costs can make it insufficient later.

A combination of investments, emergency funds, and alternate income sources will provide financial security.

Regularly review and adjust your financial plan to sustain your retirement lifestyle.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |8098 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Mar 13, 2025

Asked by Anonymous - Mar 11, 2025Hindi

Money

Hello sir, I have about 28 lakhs invested in different MF. Now i want a SWP of 35000 per month from that total fund. Looking at the current market situation I was either thinking if dividing the fund between debt 30% and equity 70%. But instead of investing a lumpsum amounts will it make more sense to park all my funds in a dynamic debt fund and then every month do SIP of maybe one lakh each to equity fund or balanced fund. Also i would like to know what difference will it make in my investment returns between sip and lumpsum except ofcourse averageing the market volatility in case of SIP and getting more UNITS if done lumpsum.

Ans: You have Rs 28 lakh invested in mutual funds and want to withdraw Rs 35,000 per month through a Systematic Withdrawal Plan (SWP). You are considering whether to invest the corpus as a lump sum in a 70% equity – 30% debt allocation or to park the full amount in a debt fund and do an SIP of Rs 1 lakh per month into equity.

Your goal should be to generate stable withdrawals while preserving your capital and ensuring growth. Below is a structured approach to managing your funds wisely.

Understanding SWP and Its Impact on Your Corpus
SWP is a cash flow strategy, allowing regular withdrawals while the remaining corpus continues to grow.

The key challenge is to balance withdrawals and growth so that the corpus does not deplete too soon.

Investing in a mix of debt and equity will ensure stability while benefiting from market growth.

Option 1: Investing 70% in Equity and 30% in Debt
This allocation is suitable for long-term growth. Equity provides growth, while debt ensures stability.

A balanced portfolio helps manage volatility and ensures a steady SWP.

The downside is that a lump sum investment in equity exposes you to market fluctuations.

If the market falls after investing, the SWP may lead to selling equity at a lower value, reducing corpus longevity.

Option 2: Parking in a Debt Fund and Doing Monthly SIPs
This reduces market timing risk by investing gradually.

Debt funds provide low but steady returns, protecting the corpus while equity exposure increases.

SIPs spread the risk over time, ensuring better price averaging.

The downside is that debt funds provide lower returns, which may impact the final corpus.

SIP vs Lump Sum: Key Differences
SIP helps in market averaging, reducing the impact of volatility.

Lump sum investment can generate higher returns if the market performs well.

SIP is better for those worried about market crashes, while lump sum works well for long-term investors willing to take higher risks.

Best Strategy for You
A hybrid approach will work best:

Step 1: Park Rs 28 lakh in a low-duration or dynamic debt fund.

Step 2: Start an SIP of Rs 1 lakh per month into equity for 24–28 months.

Step 3: Withdraw Rs 35,000 per month from the debt fund until equity allocation builds up.

Step 4: After 2–3 years, rebalance to maintain a 60% equity – 40% debt allocation for stability.

Tax Implications of SWP
Withdrawals from equity funds held for over 1 year attract 12.5% tax on LTCG above Rs 1.25 lakh.

Withdrawals before 1 year attract 20% STCG tax.

Withdrawals from debt funds are taxed as per your income tax slab.

Final Insights
A mix of debt and equity will ensure growth and stability in your SWP plan.

Parking the corpus in a debt fund first and then gradually shifting to equity is a safer approach.

Rebalancing every 2–3 years will help manage risk and sustain withdrawals.

Keep track of taxation to optimise post-tax returns.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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IIT-JEE, GATE Expert - Answered on Mar 13, 2025

Question by Aryan - Mar 13, 2025Hindi

Career

I am getting 93.55 percentile in jee mains session 1. Can I get some good reputed colleges like dtu or Nsut with mechanical branch. I am general category with Delhi domicile

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Mutual Funds, Financial Planning Expert - Answered on Mar 13, 2025

Asked by Anonymous - Mar 12, 2025Hindi

Money

Hello Sir, I am 46. Unemployed due to health reasons. I have 28 lakhs i want to invest in SWP . I need 35000 monthly. How long do I have before my fund runs out? How should I invest to make the most of it? I want my funds to appreciate as well to be atleast propionate to my need of 35000. Given- if i invest in lumpsum than I get higher number of units and if i take the SIP route it can negate the market volatility. Looking at the current market scanerio i believe it may take couple of years to see proper returns. I was also thinking of pooling the entire corpus in Aggressive debt funds and then do a SIP to an actively managed equity fund. Under these circumstances please provide fund names also. Thanks in advance.

Ans: You are 46 and unemployed due to health reasons. You need Rs 35,000 per month from your investments. Your goal is to make your funds last longer while allowing growth.

Let us analyse your options and create a plan.

Assessing Your Requirement
You need Rs 4.2 lakh per year (Rs 35,000 x 12 months).

Your corpus is Rs 28 lakh.

If you withdraw Rs 4.2 lakh annually without growth, your funds will last less than 7 years.

You need growth to sustain withdrawals for a longer period.

Challenges with a High SWP Rate
A SWP of 15% per year (Rs 4.2 lakh from Rs 28 lakh) is too high.

Safe withdrawal rates are usually 4-6% per year.

A high withdrawal rate will deplete your corpus fast.

Investment Strategy for SWP
You need a mix of equity and debt to balance growth and stability.

Step 1: Allocate Corpus Wisely
Equity (50%): Invest for growth.
Debt (50%): Keep funds for the next 5-6 years of withdrawals.
This approach helps maintain stability while allowing long-term appreciation.

Step 2: SWP from Debt Funds
Start your SWP from debt funds to avoid withdrawing from volatile equity investments.

Debt funds provide stability and minimise short-term risk.

This ensures your equity investments have time to grow.

Step 3: Systematic Transfer to Equity
Keep your equity allocation in a flexi-cap or multi-cap fund for diversification.

Invest in a systematic transfer plan (STP) from a debt fund to an equity fund.

This reduces market timing risk and balances volatility.

Expected Corpus Longevity
If your portfolio grows at 8-10% annually, your funds may last 10-12 years.

If the market performs well, your funds may last longer.

A lower withdrawal rate will further extend sustainability.

Alternative Options to Sustain Your Corpus
Reduce withdrawals: If possible, lower monthly expenses to Rs 25,000-30,000.

Part-time income: If health permits, explore work-from-home or passive income options.

Medical emergency fund: Keep at least Rs 2 lakh aside for medical needs.

Review investments: Rebalance every year to maintain growth and stability.

Final Insights
Your current withdrawal rate is high.

A balanced equity-debt approach can extend the longevity of your corpus.

Use SWP from debt funds and STP to equity for better returns.

Monitor the portfolio regularly to ensure sustainability.

If possible, reduce withdrawals slightly to make the corpus last longer.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Rajesh Kumar Singh |194 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 13, 2025

Question by Lily - Mar 13, 2025Hindi

Career

86.7 percentile in jee mains 1 Ews (female) : can i get iiit (cse or it) or am i eligible for jee advanced?

Ans: May be , depends on actual Cut off.
Slim chance for IIIT.
May be some lower rank college

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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