EXCLUSIVE: Balanced funds and disciplined withdrawal plans can help build stable retirement income, says Financial expert Vishwajeet Parashar

Indian investors are gradually moving beyond conventional savings instruments as financial experts encourage a more diversified approach to long-term wealth creation and retirement planning. In a recent discussion on a finance programme hosted by Kavita Thapliyal, financial expert Vishwajeet Parashar highlighted the growing importance of disciplined investing and balanced asset allocation in the current market environment.

The conversation focused on how families can prepare for major life goals such as buying a house, financing higher education and building a reliable retirement income without relying solely on fixed deposits or real estate. With participation in Systematic Investment Plans (SIPs) continuing to rise, market-linked investment products are increasingly finding acceptance among retail investors.

According to Parashar, investors should begin by clearly identifying their financial objectives, investment horizon and ability to absorb risk. He noted that diversification across different asset classes helps lower volatility and offers better stability during uncertain market phases.

Addressing a viewer’s question on generating regular post-retirement income, the expert recommended the Systematic Withdrawal Plan (SWP) method. Under this strategy, investors withdraw a fixed amount periodically while the remaining corpus stays invested, allowing the potential for continued growth over time.

He explained that an annual withdrawal rate of around four percent is often regarded as sustainable for many retirement portfolios. If long-term fund returns exceed the withdrawal rate, the investment corpus can continue growing while supporting monthly expenses.

Parashar also stressed the role of diversified mutual fund categories such as balanced advantage and multi-asset funds, which combine equity, debt and other asset classes. These funds are designed to adjust allocations based on market conditions, helping investors manage risk during both market rallies and downturns.

The overall message from the discussion was that retirement planning should focus on consistency and long-term discipline rather than short-term market trends. Financial planners believe that a structured and diversified investment strategy can help investors build stable income streams while preserving wealth in the long run.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions)