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If investor invest Rs. 10 Lakhs in a balanced fund what would be the value after 3 years post SWP of Rs. 7500 per month

If investor invest Rs. 1000000 on balanced fund with SWP OF Rs. 7500 pm and withdraw total amount after 3 years what will be his refund value?

Aug 16, 2016 by Biswaranjan Das,   |   Mutual Fund

It is very difficult to tell what would be the total corpus at the end of 3 years after withdrawing Rs. 7500 per month through SWP route from a balanced fund wherein the investor has invested Rs. 10 Lakhs. This is simply because, in mutual funds, there is nothing called assured returns.

The returns of the balanced funds are linked to the market return of both – equities and debt. It will totally depend on how the chosen balanced fund has performed during the 3 year time period, how the markets were during these 3 years and also at the end of the SWP tenure.

You can only guess looking at the past performance but again in mutual funds past performance is not indicative of future returns. You can check SWP returns from here https://www.advisorkhoj.com/mutual-funds-research/mutual-fund-swp-investment-calculator

We at Advisorkhoj, also believe that, for doing SWP from balanced funds one should ideally have an investment horizon of minimum five years.

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