Dear Sir, Hi, I am 34yr working abroad planning to retire after 2.5 years with a corpus of 40 L . I am planning to make 50000 per month investment through SIP in HDFC and ICICI Balance fund for next 4years. And expecting a monthly income of 25000 per month after 4yrs by SWP. Please guide me if am in wrong way. please provide your valuable advice on below. is this same balance fund can use for SWP after 4yrs or should i mention it before starting SIP. is it better to invest ( accumulated sum of 20 L )in Liquid fund and make STP or to keep in FD ( NRI-not taxable ) and withdraw monthly and make SIP, since the liquid fund is taxable. what is the best % of withdrawal? Thanks
15% return expectation from such a short span of time is impossible. I think someone (advisers) gave you this ROSY picture of BALANCED Funds. Stay away from equity if your holding period is less than 5 years. Now regarding your yearly requirement of Rs.3 lakh (monthly Rs.25,000), you are expecting around 7.5% returns. In that case, why can’t use the products like Government Of India Bonds (7.75% Government of India Savings Bonds -Should you invest?) ?