Can my father opt for SWP from balanced fund

First of all I will congratulate you for your superb work to educate people about investment and your website advisorkhoj.com is truly awesome for a layman like us to learn about investment. I need some help regarding an investment strategy for my father(age 61) retired school teacher wants to park rupees 12 lakh to a balanced fund and starts a SWP of 10K monthly from 2nd year and stay invested for 10+ years to create a monthly cash flow along with monthly pension. He has also 10 lakh bank FD. Apart from this he has no health insurance and life insurance. So can we go ahead with the plan to park the money and set up a SWP(I have selected two funds ICICI Pru Balanced Fund Growth & HDFC Balanced Fund Growth)? If you find funds are not appropriate then kindly suggest the fund names also and as the market is hovering around all time high now kindly suggest the way to park the money in those funds. Your suggestion will be truly beneficial for us. If you kindly respond to this email and give your valuable feedback we will be highly obliged?

Jun 29, 2017 by Anindya Ghosh, | Mutual Fund

Thanks for the kind words about Advisorkhoj.

Coming back to your query, your idea of opting for SWP is good in order to get a regular return. You have also chosen two good funds.

There is a point of concern about your father as he does not have a health insurance. As you know, these days the medical / treatment / hospitalisation cost is very high and if he is not covered by a health insurance, his financial situation can change drastically in case of a serious illness. Many health insurance companies offer health plans for senior citizens. You should visit an insurance comparison website and find a right plan for him.

Thanks for writing to Advisorkhoj.

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