How can I draw a fixed amount without erosion in capital

You want to draw 1% per month from your investments and yet you want your investments to remain intact. This is nearly impossible.

Your investments remain intact only in fixed deposits but you can not get 12% annual return. Even though you can withdraw @12% per annum or 1% per month as SWP from your investment in equity or balanced mutual funds but the condition that your capital should remain intact is not possible.

Our research shows that even if you are drawing a fixed amount through SWP every month, you get a good capital appreciation too over a long time period of time as you are investing in mutual funds. But our research also shows that many a times, particularly during the initial years, your investments may go down in value.

Therefore, some amount of risk is involved in this process. You should think through this and ascertain if you can take risk with your investments and can bear the interim drop in your initial investment value.

Please go through the following to understand SWPs better -

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/post-your-queries...

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