Icici Prudential Mutual fund

[Rohitmahajan]

Hi i am planning to invest in Icici prudential MF, in it i heard if we invest 5k per month then after 15yrs will get 15k every month and the amount which we invested on the current rate.
Is this policy good or not?

 

[TaxWiser]

Hi i am planning to invest in Icici prudential MF, in it i heard if we invest 5k per month then after 15yrs will get 15k every month and the amount which we invested on the current rate.
Is this policy good or not?

Hey there,
It sounds like you're referring to a Systematic Investment Plan (SIP) and a Systematic Withdrawal Plan (SWP) with ICICI Prudential Mutual Fund. Here's a breakdown of how it works:

1. Systematic Investment Plan (SIP)

• Investment: You invest ₹5,000 per month.
• Duration: For 15 years.
• Expected Returns: Assuming an average annual return of around 12-15%, your investment can grow significantly due to the power of compounding.

2. Systematic Withdrawal Plan (SWP)

• Monthly Income: After 15 years, you can set up an SWP to withdraw ₹15,000 per month.
• Principal Protection: The amount you invested (₹5,000 per month for 15 years) remains invested, and you withdraw the returns generated.

Example Calculation

• Total Investment: ₹5,000 x 12 months x 15 years = ₹9,00,000.
• Estimated Corpus: With an average annual return of 12%, your corpus could grow to approximately ₹25-30 lakhs.
• Monthly Withdrawal: You can set up an SWP to withdraw ₹15,000 per month from the returns generated.

Benefits

• Regular Income: Provides a steady monthly income.
• Flexibility: You can adjust the withdrawal amount as needed.
• Tax Efficiency: SWP can be more tax-efficient compared to other fixed income options.

Steps to Get Started
1. Choose the Right Fund: Select any Mutual Fund that aligns with your risk profile and investment goals.
2. Set Up SIP: Start investing ₹5,000 per month.
3. Monitor Performance: Regularly review the fund's performance.
4. Set Up SWP: After 15 years, set up an SWP to withdraw ₹15,000 per month.

Note: If it's a ULIP proposed by any bank executive/Insurance Agent, just stay away from it.

(Source: Conversation with Gemini AI)

 

[Rohitmahajan]

Hey there,
It sounds like you're referring to a Systematic Investment Plan (SIP) and a Systematic Withdrawal Plan (SWP) with ICICI Prudential Mutual Fund. Here's a breakdown of how it works:

1. Systematic Investment Plan (SIP)

• Investment: You invest ₹5,000 per month.
• Duration: For 15 years.
• Expected Returns: Assuming an average annual return of around 12-15%, your investment can grow significantly due to the power of compounding.

2. Systematic Withdrawal Plan (SWP)

• Monthly Income: After 15 years, you can set up an SWP to withdraw ₹15,000 per month.
• Principal Protection: The amount you invested (₹5,000 per month for 15 years) remains invested, and you withdraw the returns generated.

Example Calculation

• Total Investment: ₹5,000 x 12 months x 15 years = ₹9,00,000.
• Estimated Corpus: With an average annual return of 12%, your corpus could grow to approximately ₹25-30 lakhs.
• Monthly Withdrawal: You can set up an SWP to withdraw ₹15,000 per month from the returns generated.

Benefits

• Regular Income: Provides a steady monthly income.
• Flexibility: You can adjust the withdrawal amount as needed.
• Tax Efficiency: SWP can be more tax-efficient compared to other fixed income options.

Steps to Get Started
1. Choose the Right Fund: Select any Mutual Fund that aligns with your risk profile and investment goals.
2. Set Up SIP: Start investing ₹5,000 per month.
3. Monitor Performance: Regularly review the fund's performance.
4. Set Up SWP: After 15 years, set up an SWP to withdraw ₹15,000 per month.

Note: If it's a ULIP proposed by any bank executive/Insurance Agent, just stay away from it.

(Source: Conversation with Gemini AI)

So you mean, that 15k is the interest which we will get monthly?
What my calculation is-
Suppose i invested 9,00,000 in 15 years and With an average annual return of 12%, your corpus could grow to approximately ₹25-30 lakhs. So my 25-30lakhs is there only and i’ll get additional 15000.
Is it not the scenerio?

 

[TaxWiser]

So you mean, that 15k is the interest which we will get monthly?
What my calculation is-
Suppose i invested 9,00,000 in 15 years and With an average annual return of 12%, your corpus could grow to approximately ₹25-30 lakhs. So my 25-30lakhs is there only and i’ll get additional 15000.
Is it not the scenerio?

Nope, seems like you have no idea how SWP works. My Advice to watch the following video and in the description of the video you will find an exel sheet regarding the same where you can do your own calculations.

Best of Luck for your Investment Journey