Hello MF Guru, as of today my mf investements stand at Rs.1.95 Cr and value of that investment stands at Rs. 2.60 Cr with XIRR of 16%. Also I have invested 64 lacs in indian stocks, value of which is around 73 lacs at present. I want to know whether and how I can generate 1 lakh a month income 3 years from now without eroding the invested capital. Will it be possible to do that for next 40 years considering that portfolio will keep growing in future.
Ans: Hello, i am glad looking at the returns you have made investing on your own using mutual funds and equity.
We follow a thumb rule of withdrawal of 6% per year as SWP amount from the total portfolio
In your case after 3 yrs , your MF portfolio could be about 3.65crs at 12%
The SWP amount in such case will be Rs.182500 per month.
But since your need is 1L, your portfolio will be growing at a much higher rate as your SWP amount will be less than 6%
Assuming only 12% average returns over the next 20yrs, your portfolio amount will be approx 26crs
** I have ignored the investment you have in stocks as those can be very volatile and should not be used while calculating the SWP amounts