Dear Sir,
I retired four months back and received a retirement corpus of about Rs 1 crore. In Jan 2017 (prior to retirement), I invested 40 Lakh in MF schemes as below:
Birla SL Balanced 95 -G: Rs 15 L
ICICI Pru Bal Advantage -G: Rs 10 L
ICICI Pru Balanced -G : Rs 15 L Total 40 L
Now, recently I have invested in Debt Funds as below:
Reliance Reg Saving - G: Rs 5 L
Birla SL Medium Term -G: Rs 6 L
UTI Income Opp -G: Rs 5 L Total 16 L
I have invested Rs 15 L in SrCS scheme also a few months back.
I have a rental income of Rs 22,000 pm. I have no pension income.
At present, an amount of Rs 80L is available in my S/B a/cs, of which I desire to invest a further amount of Rs 50 L in MF. Please advise regarding course of action at my end and whether above Investments need any changes and methodology of generating Rs 60000 to 80000 income per month from April 2018 onwards, while minimising tax liability. In FY 2017-18, I shall be deriving about Rs 5 L as Bank Interest income, on which I shall pay 30% I Tax.
I consider myself a moderate risk taker.
Looking for your esteemed advise.
Regards,
Anil K Gupta
3 Answers
Dear Sir,
If you are looking for regular income from your MF investments? May I know the reason for opting GROWTH option?
Are you going to set-up SWP (Systematic Wtihdrawal options)?
I am assuming that you are aware of the risks associated with equity oriented balanced mutual funds..
Suggest you to kindly go through below articles, and you may revert to me with your queries (if any) ;
https://www.relakhs.com/lump-sum-investment-options-retirees/
https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
Dear Sir,
Also, May I know if you have financial liabilities to deal with and any financial goals to take care of (on behalf of any dependents).
Dear Sir,
Your follow on query is as below ;
Dear Sreekanth,
Thankyou for your prompt response. Yes, I want to set up SWP next year for regular income. I am aware of the risk associated with Balanced Funds. I have no financial liabilities. I have a group health insurance with 4 lac cover provided by my employer. I need to invest idle money lying my my S/B account.
Please advise on further investing in MFs in a tax efficient manner. Are Equity Saving / arbitraze funds better than Debt Funds. Should I make changes in my current portfolio.
My Answer :
Arbitrage funds at best can give returns of around 6 to 8%, but do not that they are very tax efficient, as the long term capital gains (units held for more than 12+months) are tax exempt. You may consider these as part of your emergency fund requirement or as relatively safer bet.
Kindly read :
https://www.relakhs.com/best-arbitrage-funds-returns/
As you are ok to take risk, you may also consider conservative or aggressive MIP funds (with growth + SIP set up).
Kindly read :
https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
As you are investing lump sum corpus, suggest you to set up STPs (Systematic transfer plans) to equity oriented funds, from liquid funds.
Kindly go through below articles for the possible list of investment options that can suit to your requirements ;
https://www.relakhs.com/lump-sum-investment-options-retirees/
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