I am a 50-year-old NRI, planning to settle in my hometown after two years. At the time of retirement, I will get Rs. 50-55 lakh. I also have an FD worth Rs. 40 lakh (interest rate 7.5%) in a co-operative bank. My wife is earning Rs. 10,000-12,000 per month. There is no other source of income. I need a regular income after 2 years. My friends suggested investing in mutual funds, but I don’t have any idea. How can I invest my money to get regular income post-retirement? – Rajendran N., Kozhikode
Given your financial position with an expected retirement corpus of Rs. 50- 55 lakh, existing fixed deposit of Rs. 40 lakh and your wife’s monthly income of Rs. 10,000-12,000, you can consider setting up a regular withdrawal plan called Systematic Withdrawal Plan (SWP) in mutual funds for regular income. We suggest you consider a fixed income/debt MF, where currently the yields are between 6.8% to 7.3% . It is good to leave some portion of the yield as a margin of safety and then plan your monthly withdrawals. So, if you were to consider an annual withdrawal rate of 6.5%, then you could expect an income of Rs. 51,450 per month from your total investment of around Rs.95 lakhs. However, please note that the actual returns will depend on market conditions at the time of investment.
I want to invest Rs. 2 lakhs from ULIP in a good debt fund and transfer it to a good equity fund as SIP for 1-2 years. Is it a good investment idea? My investment period is 10 years. Could you suggest the best fund in the debt and equity fund section? Is it necessary for both funds to be from the same Asset Management Company? Please advise. – Mahesh Y. S., Hyderabad
Systematic Transfer Plan (STP) is a strategy where an investor transfers a fixed amount of money from one fund to another. For debt fund, you can consider a lower duration or liquid fund. For equity fund, the choice would depend on your risk appetite. To start with, you can consider a Multi-cap fund. You may do an STP of Rs.10,000 per month for a period of 20 months. For doing STP, both the source and target funds should be from the same AMC. You can choose from our recommended mutual fund schemes in the Multicap category.
How can I start mutual fund investments? Is it possible to start an SIP with Rs. 2,000 monthly? – Samuel A., Mumbai
You can invest in mutual funds through either online or offline channels, even if the monthly SIP is Rs. 2,000. Before starting your investment journey, you must complete two mandatory requirements: PAN-Aadhaar linking and Know Your Customer (KYC) verification. For KYC completion, you will need to submit your PAN card, address proof (preferably Aadhaar), and a photograph.
If choosing the physical route, submit these documents along with the KYC form to any mutual fund AMC, Registrar, or mutual fund distributor. Alternatively, you can complete e-KYC through mutual fund AMC websites, Registrars, or other platforms offering e-KYC facilities.
Once KYC is completed, you can start your SIP investment through your preferred mode. As a first-time equity investor, we recommend starting with a Flexi-cap or Multi-cap category. You can choose from our recommended Flexi-cap or Multi-cap Funds.
