Query Answer
Which Mutual funds schemes should I invest for monthly SWP
I am 73 years old person and now retired. I have corps of 20 lacs I want return 20000 p/m from SWP kindly guide me in which funds I have invested approx 12 lacs TATA Equity Pension Fund, SBI Magnum Equity, Motilal Oswal 35 Fund, SBI Mid Cap, Canara Robeco, LT Value Fund, LT Mid Cap Fund, ICICI Banking and Financial Fund, ICICI Equity Debt Fund, ICICI Pru Discovery Fund, HDFC Balance Advantage Fund, HDFC Mid Cap and HDFC Hybrid Equity Fund. I have checked return on SWP I find that LT Midcap Fund after the SWP 12% value after 23 months 115234 on investment of 100000 and LT Value Fund given 105256 and HDFC Hybrid Equity Fund given 97376 kindly guide me that in which fund I will invested. Thanks to your site information regarding mutual funds. Really it is very knowledgeable information given by your site. I am really great full. Kindly guide me?
Aug 8, 2018 by Harish Chandhok, | Mutual Fund
Please note the following against your query –
1. You have mostly selected mid cap, small cap, multi-cap and sectoral/ thematic funds which falls into moderately high to high category.
2. Considering your age, we think, these funds will not suit you. At this age, we feel that one should not take much risk and invest only in funds which are less volatile.
3. According to us, if you are looking for higher than FD returns and ready to take moderate risk then investing in equity savings funds or dynamic asset allocation or hybrid conservative funds could be a good option. While suggesting this, we are assuming that you can remain invested for 5 years at least.
4. You have also done some homework on the SWP returns of some aggressive funds. Please note that these are past returns and not a guarantee that the same will continue in future as well.
5. The other suggestion is that you should not draw more than 9% annually (monthly 0.75%) from your initial investments. Example – You may draw Rs 750 from an investment of Rs 1 Lakh.
6. You can check the following URLS to know the returns of the fund categories suggested by us –
Hybrid Equity Savings http://savingschanakya.in/mutual-funds-research...
Hybrid Conservative http://savingschanakya.in/mutual-funds-research...
Dynamic Asset Allocation http://savingschanakya.in/mutual-funds-research...
Hope the above is helpful to you.
Wishing you the best.
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