I am a 63 years old senior citizen , wish to get approximately 1 lakh per month for my monthly expenses . Want to know how much amount to invest in mutual funds in SWP. Please suggest mutual funds name to invest .After how much period of...

I am a 63 years old senior citizen , wish to get approximately 1 lakh per month for my monthly expenses . Want to know how much amount to invest in mutual funds in SWP. Please suggest mutual funds name to invest .After how much period of investment i will be able to get SWP amount in my account .

Ans: Hello, i am glad you have the knowledge of SWP and you wise to invest in Mutual funds for the same
For an SWP of 1L per month, you have to invest 2crs ( SWP rate is 6% )
Looking at your age and since i don't have the understanding of your other investments, you should make a balanced portfolio
Listing the funds as follows which we have to invest using an STP of 10 to 20 weeks :
Aggressive Hybrid - 10%
Large and mid cap - 20%
Multicap - 20%
Mid cap - 20%
Small cap - 20%
Thematic funds - 10%

SWP can be started when the STP is fully done

Do let me know your views on this on my LinkedIn profile, attaching my profile :
https://www.linkedin.com/in/ca-vivek-lala-21a2038b?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

Ans: At age 67, planning for regular income with safety shows maturity and responsibility.
You have a specific income goal. That makes planning more precise and effective.

Let’s go through this from all angles for a complete, balanced plan.

? Understanding your income goal and age needs

– You want Rs. 13,000 monthly through Systematic Withdrawal Plan (SWP)
– That means Rs. 1.56 lakh income per year
– You are 67, so safety and steady returns matter more than growth
– You also need to beat inflation quietly over the years
– So, capital protection and consistent cashflow are both needed

? Choosing the right fund for SWP – important points

– Many people get confused between SWP and dividend
– SWP is better, as it gives fixed income
– Dividends are not guaranteed or regular

– Now, fund selection becomes key for your SWP
– You must avoid equity-only funds
– They are too volatile for regular withdrawals

– At the same time, pure debt funds may not beat inflation
– You need a balanced mix with controlled equity exposure

– Choose funds that are actively managed and have proven track record
– Index funds should not be used here

– Index funds move with markets and fall sharply in crisis
– They do not protect your capital in bad years
– Active funds have fund managers who rebalance and protect capital
– That is important in your case

– So, avoid index funds fully

? Direct funds or regular funds – which is better for SWP?

– You may think of using direct funds to save commission
– But that is not wise in retirement phase

– Direct funds do not come with expert help
– There is no guidance during market stress

– Regular plans via a Certified Financial Planner offer many advantages
– You get personalised withdrawal strategy
– You get help during market corrections
– Your investments are monitored and rebalanced

– One wrong fund selection in direct plan can hurt your full SWP
– In retirement, that is a risk you must avoid

– Regular funds ensure you are in the right asset mix
– So, choose regular funds through a MFD guided by a CFP

? How much to invest to get Rs. 13,000 monthly

– The amount depends on return expectations and tax impact
– SWP works by withdrawing fixed amount while the rest continues to grow
– So, a higher return can reduce your initial investment need

– If we expect moderate return from a mix of debt and equity
– Then around Rs. 18–22 lakh may be needed
– This amount is only a ballpark and not final

– A Certified Financial Planner can help you with exact allocation
– They can also reduce the tax impact by smart withdrawal structuring

? Taxation on mutual fund SWP – new rules to note

– For equity mutual funds:
– LTCG above Rs. 1.25 lakh per year taxed at 12.5%
– STCG taxed at 20%

– For debt mutual funds:
– LTCG and STCG taxed as per your slab

– SWP withdrawals trigger capital gains only on the gain portion
– So, tax is only on profits, not full withdrawal
– This is more tax-efficient than interest from FD or savings

– Your CFP can help plan SWP in tax-smart way
– Also spread withdrawals across folios if needed

? Emergency corpus – not to be mixed with SWP fund

– Do not keep entire capital in SWP fund
– Always have 6–9 months of expenses in liquid funds
– That gives cushion during market volatility

– You can keep Rs. 1–1.5 lakh in a liquid mutual fund
– This can be accessed easily and gives slightly better returns than savings

? Other safety steps for retirement investing

– Review health insurance coverage
– Medical costs can rise after 65
– Ensure adequate cashless policy is in place

– Nomination and joint holding must be updated on mutual funds
– This avoids delay or legal issues later

– Avoid investing in policies that combine insurance and investment
– At this age, they only reduce your income

– If you already hold LIC, ULIP or endowment policies
– Then check surrender value
– If returns are low, consider surrender and shift to mutual funds
– This will improve your income potential and transparency

? Avoid annuities – not suitable for your goals

– Annuities may look attractive for fixed income
– But they have very low returns
– Your capital gets locked, and inflation eats into your income

– Also, after your death, full capital is not passed on
– Some annuities offer return of capital, but with even lower income

– So, SWP from mutual funds is better
– You get regular income, capital appreciation and flexibility

? Why actively managed mutual funds are better

– Fund managers keep changing asset mix based on market
– This helps in reducing downside during crashes
– Index funds do not have this cushion

– For senior citizens, regular income with low risk is priority
– Actively managed funds align better with this goal

– Index funds can show negative returns during some years
– That can disrupt your SWP income
– This makes index funds unsuitable for post-retirement needs

? What to do now – action plan ahead

– Step 1: Consult a Certified Financial Planner
– Step 2: Decide how much lump sum you can invest
– Step 3: Keep Rs. 1.5 lakh aside for emergency
– Step 4: Invest remaining in 2–3 actively managed funds
– Step 5: Set SWP of Rs. 13,000 per month

– Step 6: Review portfolio once every year
– Step 7: Adjust SWP based on fund performance and market changes
– Step 8: Rebalance or change fund if needed with CFP help

– Step 9: Do not stop SWP in market correction
– Step 10: Let compounding work in long term

– This method gives you steady income and better capital safety
– At the same time, your money is not locked

– You can increase SWP in future based on returns
– Or even take out lump sum for medical or family needs

– SWP through regular mutual funds gives flexibility and tax edge
– That makes it perfect for your income need

? Finally

– You have taken a wise step by choosing mutual fund SWP over other options
– With Rs. 18–22 lakh in the right funds, you can safely get Rs. 13,000 monthly
– Keep emergency reserve separately for full safety

– Use actively managed funds only
– Avoid direct and index funds for income goals

– Work with a Certified Financial Planner to keep your portfolio healthy
– Stay invested with yearly review and controlled withdrawals

– Retirement should be peaceful, not stressful
– This SWP route will help you live with comfort, dignity, and control

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment