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How much I need to invest to draw Rs 20000 a month through SWP

I want to invest in mutual fund for SWP and I want to earn Rs. 20,000.00 per month. Please advise how much I will invest for that amount, I can invest for more than five years and I can take moderate risk. Please guide me and note that I am a retired person. Please suggest the suitable Mutual Funds name?

Jun 8, 2017 by Somnath Ghosh,   |   Mutual Fund

Being a moderate risk taker and also because your investment horizon is minimum 5 years, you can invest in balanced funds.

Ideally, you should invest Rs 30 Lakhs in lump sum and draw 8% annually (Rs 20,000 monthly through SWP) during the initial years. In future you can increase the withdrawal amount based on how your portfolios appreciates post withdrawal of monthly SWPs.

Among balanced funds, ICICI Prudential Balanced Fund, HDFC Balanced Fund, L&T Prudence Fund and DSP BlackRock Balanced Funds are top performing. You can choose from these funds and invest.

Hope you find the above useful. Thanks for writing to Advisorkhoj.

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