Need suggestions

[PRATIK07]

My relatives invested with 10 Lac in SBI Conservative hybrid fund regular growth but in SWP they DRAW 7300 AFTER 5 YR MY CURRENT VALUE IS 6 .14 LAC BUT after 5th year they didn't draw a single rupee and after 6.5 year the fund value is 10 lac now can they withdraw it or they have to hold that fund .? Guide me please. When is the correct time to withdraw it and where to invest it ? It's my relative's retirement money.

 

[17ysaurabh]

They should be able to withdraw the amount.

What's the correct time to withdraw it?
It depends upon them like what they want to do with it.
If they want a monthly pension, then
1. It's better to keep the amount invested in SWP as it would give them the best returns.
2. If they want to invest the amount in a safe option, then they can try the Senior Citizen Saving Scheme (SCSS). It gives 8.2% interest every quarter.
If they don't want the monthly pension, then I'd suggest you invest in multiple senior citizen FDs.
Basically, divide the Rs. 10 lakhs in 3 parts and then invest each part in a different bank (FD less than 5 lakh is insured by RBI) giving high interest like 8% and above. Plus, you can also try FD laddering.

Note: In SWP, if you want the amount to not end anytime soon, then make sure the amount you are withdrawing in SWP is less than the interest earned in the Mutual Funds.
Example:
Total amount invested = Rs. 10 lakhs
Monthly withdrawing = Rs. 7300
Annual withdrawal = Rs. 87600 (~ 8.7% of total amount)

Now, you should make sure that the mutual fund you are investing in gives you annual returns of 9% or more on average or your corpus will end soon.

 

[PRATIK07]

They should be able to withdraw the amount.

What's the correct time to withdraw it?
It depends upon them like what they want to do with it.
If they want a monthly pension, then
1. It's better to keep the amount invested in SWP as it would give them the best returns.
2. If they want to invest the amount in a safe option, then they can try the Senior Citizen Saving Scheme (SCSS). It gives 8.2% interest every quarter.
If they don't want the monthly pension, then I'd suggest you invest in multiple senior citizen FDs.
Basically, divide the Rs. 10 lakhs in 3 parts and then invest each part in a different bank (FD less than 5 lakh is insured by RBI) giving high interest like 8% and above. Plus, you can also try FD laddering.

Note: In SWP, if you want the amount to not end anytime soon, then make sure the amount you are withdrawing in SWP is less than the interest earned in the Mutual Funds.
Example:
Total amount invested = Rs. 10 lakhs
Monthly withdrawing = Rs. 7300
Annual withdrawal = Rs. 87600 (~ 8.7% of total amount)

Now, you should make sure that the mutual fund you are investing in gives you annual returns of 9% or more on average or your corpus will end soon.

Now they are not taking monthly pension from that money so they have to keep it or they need to withdraw it .like now market is good i think but if the market is bad then their money will go in negative right. So as per market standards when is the right time to withdraw money and they will not face any problem. like not less than 10 Lac