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Ramalingam Kalirajan |11390 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 03, 2026

Ramalingam Kalirajan has over 26 years of experience in MF distribution and wealth management. He holds an MBA in Finance from the University of Madras and is a CFP (Certified Financial Planner) credentialed professional. He is the Director of Holistic Investment, a Chennai-based AMFI-registered Mutual Fund Distribution (ARN-4188) and APMI-registered PMS Distribution firm (APRN07386), helping clients build long-term wealth through mutual funds and other investment solutions.... more

Asked by Anonymous - Aug 03, 2026

Hi I am having following portfolio including my wife. MF - All Equity based - 2.20 CR EPF - will become dormant in Mar 2027 - 1.53 CR PPF - will be closed by 2029 - 80 Lakhs Post office RDs- 2.30 CR Rental income - 60,000 per month Bank FDs - 40 Lakhs Bank Savings - 10 Lakhs Questions are on two fronts 1. Need to save my MFs corpus from market risks and get decent SWP while portion of it can grow How much I should withdraw on monthly basis and how to review the portfolio and readjust to cut down market risks 2. How the income from these resources can be cut down my tax labilities to minimum tax I and my wife need to pay per year. 3. Major events when the outflow happens if when i need to pay health insurance permiums, car insurances and per year PPF and NPS around 5 Lakhs to sustain that corpus. 4. I have stopped putting MF SIPs now from last 1 year or so. 5. My house hold expenses are around 1.20 lakhs per month. Help me aligning my strategy to build wealth along with expenses monthly to retire on this corpus. Also, I have two more properties - Land worth 6.5 CR and flat where I m shifting is worth 2.5 CR. Rental flat is of worth 3.5 CR at present. thanks and regards,

Ans: You have built a very strong asset base over the years. Your investments are well diversified across mutual funds, EPF, PPF, deposits and real estate. The focus now should shift from wealth creation to wealth protection, tax efficiency and sustainable retirement income.

» Overall Assessment

– Your financial strength is substantial.

– Household expenses are around Rs.1.20 lakhs per month.

– Rental income already covers about half of your monthly expenses.

– You have adequate liquidity through bank deposits and savings.

– The next stage is managing cash flow efficiently while allowing long-term wealth to continue growing.

» Mutual Fund Strategy

– There is no need to withdraw the entire requirement from mutual funds.

– Use rental income as the first source of monthly cash flow.

– Meet the balance through a carefully planned SWP.

– Keep a part of the mutual fund portfolio invested for long-term growth.

– Avoid moving the entire corpus into low-return products out of fear.

– Equity still has an important role in protecting purchasing power against inflation.

» Managing Market Risk

– Market risk cannot be eliminated.

– It can only be managed.

– Maintain a balanced asset allocation.

– Review your portfolio once every year.

– Rebalance whenever equity allocation becomes significantly higher than your target.

– Avoid reacting to every market correction.

– Keep at least two to three years of expenses outside equity so that SWP is not affected during market declines.

» How Much SWP?

– Your monthly expenses are around Rs.1.20 lakhs.

– Rental income already contributes about Rs.60,000.

– The remaining requirement can come through SWP.

– Increase the SWP gradually to match inflation.

– Avoid increasing withdrawals sharply after good market years.

– Review the withdrawal amount once every year.

» EPF and PPF Planning

– Your EPF corpus will become an important retirement asset.

– Plan withdrawals only when required.

– Let it continue earning wherever possible under applicable rules.

– Continue PPF contributions till maturity.

– On maturity, redeploy the proceeds based on your retirement income needs.

» Managing Annual Expenses

– Health insurance.

– Vehicle insurance.

– PPF and NPS contributions.

– Major repairs.

– Family travel.

– These should not disturb your monthly income plan.

– Keep one separate reserve for all annual expenses.

– Refill this reserve every year.

» Tax Planning

– Split investments and withdrawals between you and your wife wherever legally possible.

– This helps optimise the overall family tax outgo.

– Plan mutual fund redemptions carefully.

– Equity mutual fund long-term capital gains above Rs.1.25 lakh in a financial year are taxed at 12.5%.

– Short-term capital gains are taxed at 20%.

– Avoid unnecessary churning of the portfolio.

– Use available exemptions and deductions fully.

– Rental income should also be planned efficiently after considering eligible deductions.

– A yearly tax review is better than waiting till March.

» Should You Restart SIPs?

– Since your corpus is already substantial, restarting SIPs is not compulsory.

– If surplus income increases after retirement planning, fresh investments can continue.

– Otherwise, allow the existing portfolio to compound.

– Your existing corpus can itself create significant long-term wealth.

» Real Estate

– You already have significant exposure to real estate.

– Your land and property portfolio adds stability to your overall net worth.

– Avoid adding further concentration in the same asset class.

– Focus on extracting efficient cash flow from the assets you already own.

» Risk Management

– Review your health insurance regularly.

– Ensure both spouses have adequate medical cover.

– Keep all nominations updated.

– Prepare a Will.

– Maintain a clear record of all investments and documents for your family.

» Retirement Income Strategy

– Think of your retirement income in layers.

– Rental income becomes the first layer.

– SWP from mutual funds becomes the second layer.

– Interest from deposits supports emergency needs.

– EPF and PPF strengthen long-term financial security.

– This approach reduces dependence on any one asset.

» Finally

– Your retirement foundation is already strong.

– The priority is not chasing higher returns.

– The priority is protecting wealth, generating tax-efficient income and controlling withdrawal risk.

– Review the portfolio once every year.

– Rebalance only when required.

– Keep sufficient cash for the next few years of expenses.

– Allow the remaining investments to continue compounding over the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/

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