Can I withdraw 20 thousand monthly thru SWP by investing 30 lakhs

I will be able to invest Rs. 30,00,000 at a time. I will require Rs 20,000 per month from January 2019. Will it be possible by way of SWP?

Jan 15, 2017 by Joshi Jayant Jayaram, Pune | Mutual Fund

Yes, this is a good idea to invest 30 Lakhs in lump sum and withdraw Rs 20,000 per month through SWP route.

However, the rate of return will depend on the category of funds chosen by you. Therefore, before investing you must try to assess your risk profile and investment horizon. Try this tool to get some guidance on this https://www.advisorkhoj.com/tools-and-calculators/asset-allocation

For example - if you can take high risk then you may invest in diversified equity funds or mid & small cap funds. If you can take moderately high risk, then choosing large cap funds will be wise. However, if you are investing your retirement corpus and can only take only moderate risk then investing in balance funds is the best option.

In a nutshell, choosing the funds based on your risk profile should be given prime importance. Once you are clear on this you can select the top performing schemes from these categories and withdraw 8-10% per annum from your lump sum investment through monthly SWP mode.

Have you checked our SWP calculators? You may find them handy https://www.advisorkhoj.com/mutual-funds-research/mutual-fund-swp-investment-calculator

Thanks for writing to Advisorkhoj.

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