I want to invest 2.5lakhs in ICICI Prudential for 1year with systemic withdraw of ?17000/ per month and the rest to grow. I am 75 years of age and gets the above amount on yearly basis. What I have to do?
Ans: Given your age and investment objectives, it's essential to consult with a Mutual Fund Distributor (MFD) who holds the Certified Financial Planner (CFP) credential. They can provide personalized advice tailored to your needs and goals. Here's what you can discuss with them:
Investment Plan: Explain your goal of investing ?2.5 lakhs in ICICI Prudential for one year, with a systematic withdrawal of ?17,000 per month and the rest to grow. Your MFD with CFP credentials can help you understand the suitability of this investment plan based on your risk tolerance, liquidity needs, and financial objectives.
Risk Assessment: As a 75-year-old investor, capital preservation and income generation may be your primary concerns. Your MFD can assess your risk tolerance and recommend suitable investment options within ICICI Prudential that offer a balance between potential returns and risk.
Systematic Withdrawal Plan (SWP): Your MFD can guide you on setting up an SWP with ICICI Prudential, ensuring that you receive ?17,000 per month as income while allowing the remaining amount to continue growing. They can explain the mechanics of SWP, including tax implications and withdrawal frequency.
Portfolio Monitoring: Regular portfolio monitoring is crucial to ensure that your investment remains aligned with your financial goals and risk tolerance. Your MFD can provide ongoing support, review your investment performance, and make adjustments if necessary.
Tax Implications: Your MFD can help you understand the tax implications of your investment, including any taxes on capital gains and income generated through the SWP. They can advise you on tax-efficient strategies to optimize your returns.
By consulting with an MFD who holds the CFP credential, you can make informed investment decisions that meet your financial needs and objectives while ensuring peace of mind in your retirement years.
