Retire rich, not broke: what ₹1 crore can and can’t really buy

Want ₹1 lakh/month post-retirement? You’ll need at least ₹1–3 crore, depending on your risk appetite. Higher returns need guts—and smart diversification.

With ₹2 crore, you can sleep easy. Annuities, debt funds, and FDs delivering 6% can quietly fund a ₹12 lakh annual lifestyle—no equity rollercoaster needed.

At ₹1.5 crore, you’re in hybrid territory. Balanced and equity savings funds delivering 8% can make your dream income real—if you can stomach moderate risk.

₹1.2 crore and guts to go aggressive? Funds clocking 10% CAGR—like large-cap and hybrid aggressive—could deliver ₹1 lakh/month. But prepare for volatility.

Only ₹1 crore? You’re deep in equity waters now. Flexi-cap and multi-cap funds delivering 12–14% over a decade could do the trick—but the risk of corpus erosion looms large.

Start conservative, grow aggressive. A glide path strategy begins with debt-arbitrage funds and slowly ramps up equity exposure over five years—aiming for stability and growth.

Don’t just withdraw—strategize. Systematic Withdrawal Plans from hybrid funds can give you monthly income and tax efficiency, especially if held >1 year.

Mutual fund gains aren’t tax-free anymore. With new rules from July 2024, equity and debt fund profits face higher long- and short-term capital gains taxes. Plan smart.

Today’s ₹1 lakh won’t buy tomorrow’s lifestyle. Without a growing corpus or inflation-adjusted withdrawals, your post-retirement plan could silently sink.