Can I have capital protection if withdrawing from balanced and equity funds

I am retired. I have a corpus of 50,00,000. I would like to invest in 1. ICICI Prudential Value Discovery Fund - 10,00,000 2.HDFC Prudence Fund - 15,00,000 3. BSL Balanced 95 Fund 20,00,000 and 4. BSL MIP 25 - 2,00,000. To withdraw about 50,000 per month through SWP. Can you analyse and give advice on this portfolio. I am looking for capital protection also?

Dec 5, 2016 by Murthy, Neyveli | Mutual Fund

The funds you have chosen for taking SWP withdrawals are all fine. But we have following suggestions to make -

1. Withdrawing Rs. 50,000 per month from an investment of Rs. 50 Lakhs in the above funds is bit high. You should not withdraw more than 10% annually.

2. Capital protection is not possible as you are investing in balanced funds, diversified equity funds and MIPs. Please note that mutual fund investments carry market risk and there is no assurance of capital protection or assured returns.

3. We suggest that before investing you should assess your risk taking ability, judge risk-return potential of fund categories and schemes and then invest.

4. Taking the help of a competent financial advisor is another suggestion that we would like to give you.

Thanks for writing to us.

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