Smart Retirement Planning: Invest Rs 95 Lakh PF for a Monthly Income of Rs 1 Lakh

Smart Retirement Planning: The best easy to invest in your PF account to make a monthly income of Rs 1 lakh has been revealed by co-founders of big funds companies.

The CEO of Zfunds, Manish Kothari said that let’s take your current PF account balance of Rs 95 lakh then your PF should grow to by Rs 1.3-1.4 crore during the time of retirement. Along with your PF, you will get a gratuity of Rs 1.5 crore.

He also added quoted by economictimes.indiatimes.com, “To generate a tax-efficient and hassle-free monthly income of Rs 1 lakh, consider investing in a balanced advantage fund and start a systematic withdrawal plan (SWP) of Rs 1 lakh per month.”

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“These are hybrid mutual funds that invest in both debt and equity, adjusting the equity exposure dynamically based on market conditions. Historically, these funds have delivered returns of 8-10% per annum, slightly higher than those from fixed deposits. Balanced advantage funds from ICICI or Edelweiss could be suitable options for this strategy.”

One query that most of them asked, “Since December 2018, I have been investing Rs 1,000 monthly through SIPs in two mutual funds—SBI Consumption Opportunities Fund Direct Growth and SBI Bluechip Fund Direct Growth. Should I completely withdraw my investment from these funds and allocate the money to more promising investment options now?”

Rushabh Desai, Founder of Rupee With Rushabh Investment Services replied to this query stating that the SBI Consumption Fund is a theme-based fund that especially invests in consumption-based companies across a range of market sizes.

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He added that despite giving good results, this theme-based fund is limited and less flexible, and it can be easily affected by economic changes. These thematic or sectoral funds should be invested in lump sump as it requires perfect timings to earn better results.

Rushabh Desai also said that if you plans to invest in SIP then you should consider flexi-cap and/or multi-cap funds which are more flexible and diversified. He also suggested that you should not invest all your money in only two SBI AMC funds. You should diversify your investment in different AMCs which will help you lower the risk of concentration and poor performance.

He further added quoted by economictimes.indiatimes.com, “You can stay invested in the SBI Bluechip Fund, but be sure to choose a flexi-cap or multi-cap fund from a different AMC. Given the high market levels and the recent performance of the consumption fund, you might consider booking profits.”

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