Can you suggest funds for withdrawing through monthly SWP

Yes, you can invest Rs 50 Lakhs and withdraw a fixed amount on a fixed date every month through SWP route.

However, withdrawing Rs 50,000 from an investment of Rs 50 Lakhs is bit high! Though the AMC will not stop you from withdrawing that amount from your lump sum corpus but that might affect your long term return as the withdrawal rate of 1% per month is very high.

You should note the following things before you actually invest and start your SWP –

1. Choice of funds should be based on your risk profile. For example – if you can take high risk then invest in diversified equity funds or mid cap funds. If you are not a high risk taker, then invest in large cap funds and balanced funds.

2. You should not draw more than 8% in the initial years. That means out of the investment of Rs 50 Lakhs, you should not draw more than Rs 33,000 per month. You should monitor your portfolio regularly and see how the returns are evolving and then take a call in future if the monthly withdrawal amount can be increased or not.

3. Refer this link to see the SWP returns of different funds - https://www.advisorkhoj.com/mutual-funds-research/mutual-fund-swp-investment-calculator

4. Refer to the following articles to read more about balanced funds –

https://www.advisorkhoj.com/articles/Mutual-Funds/Mutual-Fund-Systematic-Withdrawal-Plans-are-smart-option-for-income-needs

https://www.advisorkhoj.com/googleSearch?q=swp

Hope the above helps.

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