Hi, I have a corpus of 1 cr. Can I do SWP that gives me 1 lakh per month? If not what is realistic withdrawal I can make and which scheme to opt for? Thanks
Ans: Hello Vikas & thanks for writing to me. I am assuming you are looking for a consistent source of cash flows for monthly expenses etc.
Withdrawing 1% a month/12% a year seems aggressive, and such aggressive withdrawals may stunt the growth of your corpus, causing you to withdraw more from your principal amount instead of any accrued gains, causing you to deplete your corpus earlier than planned. Half a percent or quarter of a percent of your corpus, that is Rs.50,000 or Rs.25,000 is a much better figure to withdraw, as it leaves potential for your corpus to grow faster than withdrawals.
You can consider investing in hybrid funds like balanced advantage/dynamic asset allocation funds, multi asset funds, aggressive hybrid or conservative hybrid funds or a mix of debt, equity & hybrid funds, based on your specific needs.