I've achieved my wealth creation goal by accumulating around a crore of rupees. Now, I plan to redeem that money through a systematic withdrawal plan. What should be my redemption duration?
- Yuvraj
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If your accumulated capital was for a goal, then you should have redeemed it periodically. If your only target was to accumulate a crore of rupees and now when it has happened and you want to redeem it, then do it on an as-needed basis. If you want to derive comfort from your accumulated target, then you can choose to invest in a fixed-income fund. You can also choose to invest 30-50 per cent in a fixed-income fund and the rest in equity.
In other words, if your accumulated money is linked to any spending or a consumption plan, then you should prepare accordingly and start withdrawing beforehand. For example, if you need Rs 50 lakh for your child's education and Rs 12.5 lakh of the corpus is required in the first year, then you should put this money in a fixed-income fund one year before and do so over a period of 12-18 months, using a Systematic Transfer Plan. This will make sure that your spending plan is not dependent on the market. However, in the absence of any such goal, you should remain invested and let the money grow.