Can I withdraw 45000 per month by investing 40 lakhs lump sum

If you want to draw Rs 45,000 monthly by investing Rs 40 lakhs in lump sum then it is a very high amount of monthly withdrawal. For this kind of requirements, we suggest to invest in balanced funds and draw a fixed amount not exceeding 8-9% annually in the initial years.

Therefore, by investing Rs 40 Lakhs, you should not draw more than Rs 30,000 per month through SWP (assumed withdrawal 9% / 12 months). However, you can increase the monthly SWP amount later when you see some appreciation over your investment amount.

For retirees, balanced funds are ideal investment option provided you have an investment horizon of 5 years. Some of the balanced funds that you can consider investing in, are ICICI Prudential Balanced Fund, HDFC Balanced Fund, DSP BlackRock Balanced Fund and SBI Magnum Balanced Fund.

Thanks for writing to Advisorkhoj.