How my father can receive 40 thousand a month by investing 40 Lakhs

If your father want to draw Rs 40,000 monthly by investing Rs 40 lakhs in lump sum then it is a very high amount of monthly withdrawal. For this kind of requirements, we suggest to invest in balanced funds and draw a fixed amount not exceeding 8-9% annually in the initial years. Therefore, by investing Rs 40 Lakhs, he should not draw more than Rs 30,000 per month through SWP (assumed withdrawal @ 9% / 12 months). However, he can increase the monthly SWP withdrawal amount later when he sees some capital appreciation over his investments.

For retirees, balanced funds are ideal investment option provided they have an investment horizon of at least 5 years and able to take moderate risk. Some of the balanced funds that he can consider investing in are, ICICI Prudential Balanced Fund, HDFC Balanced Fund, DSP BlackRock Balanced Fund and SBI Magnum Balanced Fund.

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