my monthly income post taxes is 2.5 lakh.my MF corpus is 1.25 cr .i am 38 and want to create a corpus which could give me monthly withdwal of 2 lakhs monthly in 7 years time.my xirr is sofar 15 %. how much should i save for this calculation.??

Ans: At age 38, your goal to create a sustainable monthly withdrawal of Rs. 2 lakhs is achievable. With a disciplined savings approach, optimal mutual fund strategy, and proper inflation adjustments, you can achieve financial independence.

 

Understanding Your Goal
1. Corpus Requirement

A monthly withdrawal of Rs. 2 lakhs means Rs. 24 lakhs annually.
A 15% XIRR can help sustain withdrawals for the long term.
You’ll need a corpus of around Rs. 3.5 to Rs. 4 crore in 7 years.
 

2. Inflation Consideration

Rs. 2 lakhs today will be around Rs. 2.8 lakhs in 7 years at 5% inflation.
Your target corpus must grow to accommodate this rise in expenses.
 

Current Financial Snapshot
1. Existing MF Corpus

Your existing mutual fund corpus is Rs. 1.25 crore.
At 15% XIRR, this corpus will grow significantly over 7 years.
 

2. Monthly Income and Savings Potential

Post-tax income is Rs. 2.5 lakhs.
With disciplined savings, you can channel a significant portion into investments.
 

Estimating Additional Savings
1. Calculating Savings Requirement

Assuming your current corpus grows at 15% annually:
It will contribute a substantial portion towards your target.
Additional savings will bridge the gap to reach Rs. 3.5 crore or more.
 

2. Suggested Monthly Savings

Save Rs. 60,000 to Rs. 70,000 monthly into mutual funds.
This amount, combined with your current corpus, will help meet the target.
 

3. Adjusting Over Time

As your income grows, increase your savings gradually.
This ensures that inflation-adjusted expenses are well covered.
 

Investment Strategy
1. Actively Managed Mutual Funds

Invest in actively managed equity mutual funds for long-term growth.
These funds often outperform index funds, especially in volatile markets.
 

2. Regular Plans over Direct Plans

Regular plans through a Certified Financial Planner ensure professional guidance.
Direct plans lack advisory support, leading to missed rebalancing opportunities.
 

3. Balanced Portfolio

Maintain 70-80% in equity funds for growth and 20-30% in debt funds for stability.
This diversification reduces risk and supports consistent growth.
 

4. Systematic Investment Plan (SIP)

Start a monthly SIP for disciplined savings and rupee cost averaging.
SIPs also align with your cash flow, ensuring regular investments.
 

Withdrawal Strategy
1. Systematic Withdrawal Plan (SWP)

SWPs ensure regular cash flows during retirement without liquidating the corpus.
Withdraw from debt funds during equity market corrections.
 

2. Tax-Efficient Withdrawals

Plan withdrawals to minimise long-term capital gains tax.
Withdraw in tranches to stay below taxable thresholds when possible.
 

Risk Management
1. Emergency Fund

Set aside 6-12 months of expenses in a liquid fund.
This protects your investments during unforeseen circumstances.
 

2. Health Insurance

Ensure comprehensive health insurance for you and your family.
High coverage avoids unexpected medical costs eroding your corpus.
 

Final Insights
Your goal of Rs. 2 lakh monthly withdrawal in 7 years is achievable. With Rs. 1.25 crore already invested, disciplined monthly savings of Rs. 60,000 to Rs. 70,000 will bridge the gap. Focus on actively managed mutual funds and follow a well-diversified portfolio for long-term growth. Regular reviews with a Certified Financial Planner will help you stay on track.

 

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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