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Ramalingam Kalirajan |10872 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Nov 06, 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

Asked by Anonymous - Nov 06, 2025Hindi

I have accumulated 1.4 crores in equity mutual funds, 28 lakhs in PPF and own flat worth 85 lakhs. I am 52, female working in Chennai with take home salary of 2.1 lakhs per month. I got married, but separated, no children. My siblings are settled abroad. I like to travel and I want to retire next year at 53. How much monthly income I can expect from my retirement corpus?

Ans: You have done an excellent job of building your wealth with discipline. By 52, accumulating Rs 1.4 crores in equity mutual funds, Rs 28 lakhs in PPF, and owning a house worth Rs 85 lakhs shows your patience and steady efforts. Many people in their 50s struggle to balance growth and safety. You have already laid a strong base. Your wish to retire at 53 is realistic if planned carefully.

Let’s see how you can structure your money to get stable income and a peaceful retired life.

» Understanding your present position

You have three major assets now –

Equity mutual funds worth Rs 1.4 crores

PPF balance of Rs 28 lakhs

Residential flat worth Rs 85 lakhs

You have no dependent children and no ongoing liabilities mentioned. You also have a steady lifestyle and enjoy travel. These details help shape your post-retirement cash flow.

Your flat provides security. Your PPF gives stability. Your mutual funds give growth and flexibility. This mix is very healthy. You are already close to a comfortable retirement point.

» The right mix between growth and safety

After retirement, you need both income and safety. You also need your money to grow to beat inflation. Equity mutual funds will still play an important role. But you must reduce risk.

It is good to keep part of your corpus in safer instruments. PPF already provides one layer of safety. You can use part of your equity mutual fund corpus to create an income-generating portfolio. This portfolio can include a mix of hybrid, balanced advantage, and short-duration debt mutual funds.

Such diversification can help you draw steady income and protect capital at the same time. Don’t move everything to debt. Equity must remain at least 35%–40% to ensure long-term growth even after retirement.

» Planning for monthly income

Your total financial assets (excluding house) are Rs 1.68 crores. A well-designed retirement plan can provide monthly income in the range of Rs 90,000 to Rs 1 lakh comfortably.

This estimate assumes you continue to invest the corpus in a balanced way, and use a systematic withdrawal plan (SWP) from your mutual fund investments.

SWP is a flexible method where you withdraw a fixed amount each month. The remaining corpus stays invested and continues to earn returns. It gives you control, liquidity, and growth potential.

Your PPF can be partly used for emergency needs. Since PPF gives steady interest and tax-free return, it should not be fully withdrawn. You can use part of it to create a contingency reserve.

» Managing inflation in retirement

Inflation is a silent risk after retirement. Costs rise every year. You must ensure your income also rises. Fixed instruments alone cannot do this.

Equity mutual funds, through growth potential, help your income stay ahead of inflation. That is why keeping part of your portfolio in equity funds is important even after you stop working.

You can structure your withdrawals so that your monthly income rises slightly every year. For example, start with Rs 90,000 per month and increase it by 4–5% each year. This keeps pace with inflation and helps maintain your standard of living.

» Using your PPF smartly

PPF gives guaranteed and tax-free returns. You can use this to fund 3–4 years of your living expenses. This acts as your safety cushion. It helps you avoid selling mutual fund units during bad market periods.

Such a structure gives both comfort and flexibility. You will have liquidity when needed and peace of mind that you are not forced to redeem equity in volatile markets.

» Role of your residential flat

Your flat worth Rs 85 lakhs adds stability. You can continue staying there without rent expense. This lowers your monthly cost of living. In future, if you wish to downsize, you may sell or rent it to supplement income.

However, you should not rely on selling or renting immediately. Keep your main focus on income from financial assets. Property should remain a backup, not a primary income source.

» The right withdrawal approach

Withdrawals should come mainly from mutual funds through SWP. Withdraw a fixed amount every month from selected balanced or hybrid funds. The rest stays invested to grow.

Withdrawals from debt funds can be used in the first few years. Equity funds can continue to grow and be tapped later. This strategy reduces tax impact and keeps capital growing.

Remember, when selling equity mutual funds, long-term capital gains above Rs 1.25 lakh are taxed at 12.5% as per the new rule. So, plan withdrawals in a tax-efficient manner.

» Keeping money ready for travel and enjoyment

You mentioned travel is your passion. That is wonderful. It keeps life exciting after retirement. Set aside a small travel fund. This can be kept in short-duration debt mutual funds or liquid funds.

Every year, you can withdraw from this fund for your trips. It ensures your main retirement corpus remains undisturbed. Planning travel money separately makes your life more joyful and less stressful.

» Managing taxes after retirement

You must plan your withdrawals and interest income carefully. Mutual fund SWP is tax-efficient compared to interest from deposits. PPF maturity amount is tax-free. So, use that advantage.

Avoid keeping large funds in fixed deposits, as interest will be taxed as per your slab. Keeping most of your income coming from mutual fund SWP will reduce tax burden and improve net income.

» Building a 360-degree structure for your retirement

A good retirement plan is not only about investments. It also includes:

A clear emergency fund for 6–12 months of expenses

A separate travel and lifestyle fund

Adequate health insurance

A small contingency fund in PPF or liquid funds

Proper nomination and will creation

At 53, health insurance becomes very important. Continue your existing cover or enhance it if needed. Also, prepare your nominations and will to make things smooth for your heirs.

» Emotional and lifestyle side of retirement

You have lived responsibly and independently. Retirement will give you more free time and flexibility. You can use it for travel, learning, and personal hobbies.

Try to build a routine that keeps you active and connected. Stay involved in social or community activities. Many retirees also do light consulting or part-time creative work. This keeps you engaged and mentally healthy.

Having a well-planned financial base allows you to enjoy these years fully without worry.

» Common mistakes to avoid

Don’t shift your full corpus into fixed deposits. That will reduce long-term growth.

Don’t depend only on PPF or savings accounts for monthly income. They cannot beat inflation.

Don’t panic when markets fall. Your plan must work for 25–30 years. Ups and downs are normal.

Don’t withdraw randomly. Use a structured SWP plan through mutual funds.

Avoid direct mutual funds unless you have deep knowledge and time. Direct funds demand constant tracking and rebalancing. Investing through regular plans with guidance from a Certified Financial Planner ensures discipline and emotional stability.

A CFP monitors your asset allocation, tax impact, and risk comfort. They help adjust the plan as your needs change. This brings more peace than chasing every market move yourself.

» Adjusting the plan over time

Even after retirement, review your portfolio once a year. The ratio between equity and debt may need adjustment. If markets do very well, shift some gains to debt. If markets fall sharply, wait patiently.

You should also relook at your monthly expense and lifestyle each year. Inflation, medical costs, and travel plans may change. Adjust withdrawals accordingly.

Regular rebalancing keeps your portfolio healthy and aligned with your life stage.

» Handling emergencies without stress

Keep at least Rs 10–12 lakhs in a combination of liquid funds and PPF. This acts as your safety net. Use it only for true emergencies such as medical expenses or major repairs.

This prevents you from disturbing your main income portfolio. It also gives mental comfort that you are secure.

» Protecting your peace of mind

Your situation is unique. You have no dependents and a simple lifestyle. This gives you flexibility and freedom to design retirement as you like. You can enjoy travel, new experiences, and hobbies without financial fear.

A planned income structure through mutual fund SWP will keep you financially independent. Periodic review will ensure your wealth grows with inflation. You can enjoy your 50s and 60s peacefully with enough income and security.

» Finally

You have already built a strong foundation for financial independence. With Rs 1.4 crores in equity mutual funds, Rs 28 lakhs in PPF, and a house of Rs 85 lakhs, your retirement dream is achievable.

If you create a balanced income portfolio, you can draw Rs 90,000 to Rs 1 lakh monthly after retirement. This can grow slightly every year to beat inflation. You can travel, live comfortably, and remain independent.

Continue to keep patience and discipline. Review your plan yearly. Protect your health and peace of mind. You have already achieved much, and the next phase can be even more rewarding if managed with care and clarity.

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.