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Ramalingam

Ramalingam Kalirajan  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 29, 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
RAHUL Question by RAHUL on Jun 29, 2025Hindi
Money

Hello sorry my in hand was 1.15lakh monthly not yearly,

Ans: With Rs. 1.15 lakh monthly in hand, your investment capacity is much higher.

Increase SIP in equity mutual funds to Rs. 25,000–30,000/month

Raise PPF to Rs. 10,000/month

Continue NPS at Rs. 1.5 lakh yearly

Build emergency fund of Rs. 3–4 lakhs

Hold ULIP till 5 years, then exit and move to mutual funds

Buy health and term insurance immediately

For exact fund names and plan, please contact a CFP with MFD license or reach out via the website below.

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.
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Ramalingam

Ramalingam Kalirajan  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 03, 2025

Asked by Anonymous - Feb 02, 2025Hindi
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Money
Please elaborate the details calculation for Rs 1200000 annual income
Ans: To generate Rs. 12,00,000 per year (Rs. 1,00,000 per month) in a sustainable way, a structured withdrawal plan is essential. Below is a detailed calculation based on different investment options.

Key Factors Considered
Inflation Rate Assumed: 7% per year.

Expected Returns:

Debt Investments: 7% per year.
Equity Mutual Funds: 12% per year (for long-term growth).
Corpus Available: Rs. 2 crore.

Withdrawal Strategy: A mix of fixed-income investments and growth investments to ensure long-term sustainability.

Step-by-Step Calculation
1. Fixed Income Portfolio (Rs. 90 Lakh - 6.9% Average Return)
A portion of the corpus should be allocated to stable, interest-generating instruments to ensure steady cash flow.

Senior Citizen Savings Scheme (SCSS): Rs. 30 lakh at an assumed return of 8.2% will generate approximately Rs. 2,46,000 per year.

RBI Floating Rate Bonds: Rs. 20 lakh at an assumed return of 7.8% will generate approximately Rs. 1,56,000 per year.

Debt Mutual Funds (SWP Mode): Rs. 25 lakh at an assumed return of 7% will generate approximately Rs. 1,75,000 per year.

Fixed Deposits (for emergencies): Rs. 15 lakh at an assumed return of 6.5% will generate approximately Rs. 97,500 per year.

The total fixed-income return from these sources is around Rs. 6,74,500 per year.

2. Equity Mutual Fund Portfolio (Rs. 1.10 Crore - 12% Expected Return)
A portion of the corpus should remain invested in equity mutual funds to ensure long-term growth. This allows systematic withdrawals while keeping pace with inflation.

Systematic Withdrawal Plan (SWP) from Equity Mutual Funds: Rs. 1.10 crore invested at an assumed return of 12% will allow withdrawals of approximately Rs. 5,25,500 per year while maintaining capital appreciation.

Reinvestment of Surplus Growth: Equity funds typically generate more than 12% in the long run. Any surplus growth can be reinvested or used to increase withdrawals over time.

The total return from equity investments is expected to be Rs. 5,25,500 per year.

3. Total Annual Income Generated
Fixed Income Sources: Rs. 6,74,500 per year.
Equity SWP Withdrawals: Rs. 5,25,500 per year.
Total Annual Income: Rs. 12,00,000 per year (Rs. 1,00,000 per month).
4. Sustainability of the Plan
This investment plan ensures that:

The capital in equity continues to grow, covering future inflation-adjusted expenses.
Fixed-income investments provide steady returns for immediate needs.
Systematic withdrawals from equity funds are managed to balance growth and stability.
Periodic rebalancing is necessary to maintain the right asset allocation.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner

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

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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