1. Mathematically, 1% per month can be withdrawn from a retirement corpus perpetually if it is growing at 12.7% CAGR and above (without discounting annual inflation).
2. Historically, all the Top 10 funds in largecap, multicap, midcap, large & midcap, ELSS, value-oriented and hybrid-aggressive fund categories are currently growing at a much higher CAGR since their respective launch dates 10-25 years ago.
3. However, future returns of these funds - and others too - would depend entirely on our country's economic growth and performance of their fund management teams.
4. As this is always unknown and only in the realm of conjecture, albeit with a positive long-term outlook, it is best to be conservative in our monthly withdrawal needs in retirement, say 0.3%-0.5% per month.
2. Historically, all the Top 10 funds in largecap, multicap, midcap, large & midcap, ELSS, value-oriented and hybrid-aggressive fund categories are currently growing at a much higher CAGR since their respective launch dates 10-25 years ago.
3. However, future returns of these funds - and others too - would depend entirely on our country's economic growth and performance of their fund management teams.
4. As this is always unknown and only in the realm of conjecture, albeit with a positive long-term outlook, it is best to be conservative in our monthly withdrawal needs in retirement, say 0.3%-0.5% per month.