Hi Ramalingam Sir, hope this message finds you in best of health and spirits. I need your help with regards to 2 queries. Query 1 . I was working in abroad from last 3 yrs and had converted my savings account to NRE/NRO account and even my demat was converted around 4 months back. I returned to India at the end of April as I lost the job due to company closure. ? Currently my resident status is NRI should I change it back to resident (I returned back a month back). As per rules I am aware resident status is considered if we are in India for 180days or more. ? Handling bank accounts, when to convert them back to savings. Query 2.Related to setting up SWP to cover monthly expenses. (to be started next year mostly) Currently I have 66L in saving (10 in FD), 8L in gold, 6L in ELSS mutual fund, 1L in Vedanta, 1.3 in Yes bank. Another 5L kept for regular monthly expenses. Planning to invest 75L to mainly cover monthly expenses until I am able to find another job.Current expenses per month around 60-70 thousand. How would you suggest investing with moderate risk , my idea was to use Aggressive Hybrid funds and HDFC Balanced fund which have atleast >20% CAGR in last 3yrs. ? Investing via lump-sum in stages or SIP over next 10-12 months. Thank you so much Sir for your guidance. Regards

Ans: You have shown maturity in planning ahead even after a job loss.
This mindset will protect your wealth and give peace during transition.
Let’s take your two queries one by one.

Query 1: NRI Status, Bank Accounts, and Demat Conversion
You have returned to India end of April after working abroad for 3 years.
Your bank and demat accounts are now under NRI status.
Now that you are back, here’s how to proceed.

Understanding Residential Status – For Tax and Banking

As per Income Tax Act, your status depends on number of days in India.

If you stay 182 days or more in the financial year, you become a Resident.

Till then, you remain NRI for tax purposes.

But bank compliance is handled differently by RBI rules.

Once you return with intention to stay, you become Resident but Not Ordinarily Resident (RNOR).

Action Plan for Bank Accounts:

Inform your bank about change in residency intention.

Convert NRE and NRO accounts into Resident Savings Account.

Close or redesignate the NRE FD if any.

Interest from NRE FD becomes taxable after status changes.

Convert NRI demat account to Resident demat.

Do this by submitting a declaration, PAN, Aadhaar, etc.

Don’t delay this for 6 months.
Delay causes tax mismatches and compliance issues.

Till then:

You can continue using NRO account for Indian income.

Avoid new NRE deposits.

Query 2: Investment Strategy for Rs. 75 Lakh with SWP in Mind
You want to invest Rs. 75 lakh to generate monthly income.
Current monthly expenses are Rs. 60,000–70,000.
You already have separate buffer of Rs. 5 lakh for short-term use.
That’s a smart cushion to start with.

Let’s build a 360-degree moderate-risk plan.
It should give monthly income and preserve capital.
Also offer inflation-beating growth without high stress.

Create 3 Investment Buckets
Use a bucket strategy.
This divides your corpus into parts with different purposes.
Each part supports the other for smooth cash flow.

Bucket 1 – Short Term (6–12 Months Need): Rs. 10–12 Lakh

Use this for next 12 months of SWP or withdrawals

Use ultra-short-term or low-duration debt mutual funds

Do not invest this in equity or volatile hybrid funds

Withdraw Rs. 60K–70K monthly from this for 1 year

This protects you from market fall in initial year.
Also gives time to slowly build long-term corpus.

Bucket 2 – Medium Term (2–5 Years): Rs. 20–25 Lakh

Invest in hybrid mutual funds with 30–40% equity

Choose balanced advantage or equity savings funds

Begin SWP from this portion after 12–15 months

Gives steady returns with low volatility

This bucket gives monthly cash flow after Bucket 1 is used.
It also rebalances between debt and equity automatically.

Bucket 3 – Long Term (5+ Years): Rs. 38–40 Lakh

Invest in large cap and flexi cap mutual funds

Start STP from liquid fund over next 12 months

Avoid lump sum in equity funds to avoid timing risk

Keep invested for long-term growth

This bucket builds real wealth.
Helps you fight inflation.
Later supports your retirement income after 55–60.

SWP Strategy to Manage Monthly Expenses
How to setup:

Start withdrawing monthly from Bucket 1 immediately

After 1 year, activate SWP from Bucket 2

Withdraw Rs. 60K–70K per month

Increase by 5% yearly to match inflation

After 5–6 years, shift to Bucket 3 for SWP

Why this works better:

Avoids pressure on equity in early years

Gives time to build corpus through growth

Avoids selling when market is down

Gives reliable and regular cash flow

Use only growth option of mutual funds.
Never use dividend option – it is taxed fully.
SWP gives capital gains tax only on redeemed units.

Your Plan to Use Aggressive Hybrid Funds – Need Caution
You mentioned funds with >20% CAGR in 3 years.
This return is short-term and not sustainable.

Disadvantages of choosing high past return funds:

Past performance is not future guarantee

Aggressive hybrid funds can fall like equity in bad years

Risk is higher than needed for income generation

May give you anxiety during withdrawals

Use balanced advantage or equity savings hybrid category.
They adjust asset allocation based on market conditions.
These are more suitable for regular income.

SIP or Lump Sum – Which Is Better Now?
Since markets are uncertain, SIP or STP is better.
This avoids entering market at peak.
Also gives rupee cost averaging benefit.

Recommended method:

Keep Rs. 15–20 lakh in liquid funds

Start STP into equity funds over next 12 months

SIP monthly from this into long-term funds

Avoid lump sum into equity

Hybrid funds can be used partly as lump sum

This avoids regret if market corrects in next 6 months.
Keeps your peace of mind intact.

Use Regular Plans via Certified Financial Planner
You must avoid direct plans.
Though expense ratio is low, the cost of mistakes is higher.

Problems with direct mutual fund plans:

You miss rebalancing support

No help in reviewing fund performance

No tax-saving guidance

No withdrawal strategy built for SWP

Easy to panic in market fall without expert advice

Why use regular plan through Certified Financial Planner:

Strategy matched to your goals

Emotional support during volatility

Tax-efficient SWP planning

Discipline and structure for early retirement

Better fund selection and monitoring

When done wrong, even best fund can fail you.
But when managed well, even average fund can deliver peace.

Additional Suggestions for 360-Degree Safety
Buy health insurance if not already covered by ex-employer

Add top-up policy if existing coverage is low

Make nominations in mutual fund and bank accounts

Prepare a will for succession clarity

Keep Rs. 3–5 lakh always as emergency backup

Avoid risky investments like crypto or unlisted shares

Avoid property investment – not suitable now

Focus on liquid, tax-efficient and inflation-beating assets

Finally
You’ve taken strong first steps after coming back from abroad.
You’ve built a solid cash reserve and want to plan income smartly.
You are also thinking long-term and cautiously.

Avoid investing everything in equity or chasing past returns.
Avoid aggressive hybrid funds just because of 3-year performance.
Use a SWP-friendly hybrid and equity strategy with planned withdrawal path.
Use STP to enter equity funds slowly.
And always keep guidance from a Certified Financial Planner.

This plan can support your lifestyle today and your dreams tomorrow.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment