I am 60 years old, I want to invest in 3 to 4 Mutual funds Rs.15 lakhs for swp amount of Rs.12,000/- per month for next 10 years, which funds will be better from below mentioned funds SBI small cap fund HDFC Top 100 fund Mirae Asset Blue Chip fund UTI nifty Index fund Mirae Asset large cap fund ICICI Prudential Blue chip fund Index fund nifty 50 Parag Parikh Flexicap fund HDFC Flexicap fund

Ans: Nice funds; please continue no change required.

Ans: Nice funds; please continue no change required.

Ans: Nice funds; please continue no change required.

Ans: You want to grow your capital while using a Systematic Withdrawal Plan (SWP). Since you are unemployed due to health reasons, this plan must balance returns and stability.

A well-structured investment strategy can help sustain your monthly expenses while allowing capital appreciation over 10 years.

Understanding Your Investment Needs
You have Rs 50 lakh as your corpus.

Your monthly expenses are Rs 50,000.

You need a plan that gives regular income and long-term growth.

The portfolio should be stable and not highly volatile.

Why a Systematic Withdrawal Plan (SWP)?
An SWP allows you to withdraw a fixed amount every month.

Unlike fixed deposits, it gives better returns and tax efficiency.

It helps maintain financial discipline while keeping the corpus invested.

Returns from mutual funds can beat inflation over time.

Investment Strategy for 10 Years
Your corpus should be divided into different asset classes.

Equity Mutual Funds: These funds help in long-term capital growth.

Debt Mutual Funds: These provide stability and reduce risk.

Liquid Funds: These act as an emergency buffer.

Portfolio Allocation for Stability and Growth
60% in Equity Mutual Funds for long-term appreciation.

30% in Debt Mutual Funds to provide stability and steady returns.

10% in Liquid Funds to cover immediate expenses.

This allocation balances risk and return. Equity grows wealth, debt protects capital, and liquid funds handle short-term needs.

Choosing the Right Mutual Funds
Equity Mutual Funds (60%)
Select a mix of large-cap, mid-cap, and flexi-cap funds.

Large-cap funds give stability.

Mid-cap and flexi-cap funds provide higher growth potential.

Debt Mutual Funds (30%)
Choose funds with a good balance of safety and returns.

Short-duration and dynamic bond funds work well.

Liquid Funds (10%)
These funds should have high liquidity for emergency needs.

Avoid keeping too much in savings accounts or fixed deposits.

How to Implement the SWP?
Start withdrawing from the debt portion first.

Let equity investments grow without withdrawals for the first 3-5 years.

Gradually shift funds from equity to debt as you approach 10 years.

Keep reviewing the plan every year.

Tax Implications on SWP
Withdrawals from equity funds after one year are taxed at 12.5% if gains exceed Rs 1.25 lakh.

Debt mutual fund withdrawals are taxed as per your income slab.

Spreading withdrawals across years helps reduce tax burden.

Best Practices for a Sustainable Plan
Keep an emergency fund to avoid withdrawing from investments in a market downturn.

Rebalance the portfolio based on market conditions.

Avoid withdrawing too much in the early years to keep the corpus growing.

Review your financial plan every year with a certified financial planner.

Finally
A mix of equity, debt, and liquid funds ensures growth and stability.

SWP gives tax-efficient monthly income.

Avoid withdrawing from equity in the early years.

Regular review and rebalancing are essential.

A certified financial planner can help fine-tune the plan based on market changes.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

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