Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

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

Asked by Anonymous - May 08, 2024Hindi

Hi, i have 70 Lakhs corpus fund in my account. Im investing 10k every month in quant small cap and nippon small cap fund in each. Where can I invest 70lakhs so tht i get 35k per month for my monthly expenses.

Ans: With a corpus of 70 lakhs and the objective of generating 35k per month for expenses, let's devise a sustainable income-generating strategy while ensuring prudent wealth management.

Income Generation Strategy
Dividend Yield Funds: Consider allocating a portion of your corpus to dividend yield funds, which invest in stocks that pay regular dividends. These funds can provide a steady stream of income while offering the potential for capital appreciation.

Debt Funds: Invest a portion of your corpus in debt funds, which primarily invest in fixed-income securities like bonds and government securities. Debt funds offer stable returns with lower volatility, making them suitable for income generation.

Systematic Withdrawal Plan (SWP): Implement SWP in equity and hybrid funds to systematically withdraw a fixed amount each month. This allows you to benefit from potential capital appreciation while receiving regular income.

Portfolio Allocation
Equity and Debt Allocation: Strike a balance between equity and debt investments to manage risk while aiming for sustainable income. Consider allocating around 30-40% of your corpus to equity funds and the remaining to debt funds.

Diversification: Diversify your portfolio across various asset classes and fund categories to mitigate risk and enhance stability. Opt for a mix of large-cap, mid-cap, and multi-cap equity funds along with diversified debt funds.

Professional Guidance
Consult a Certified Financial Planner to tailor an investment strategy aligned with your financial goals, risk tolerance, and income requirements. They can help you optimize your portfolio for income generation while ensuring long-term wealth preservation.

Regular Review
Periodically review your investment portfolio and adjust your strategy as needed based on changes in market conditions, financial goals, and income requirements. Regular monitoring ensures that your portfolio remains on track to meet your financial objectives.

Conclusion
By adopting a balanced approach to asset allocation and leveraging various investment avenues, you can effectively generate a monthly income of 35k from your corpus fund while safeguarding its long-term growth potential. Seeking professional guidance and regularly reviewing your portfolio are key to achieving financial security and stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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.