How should I manage my equity mutual funds portfolio worth Rs 60 lakh after retirement?

I retired three years ago and received Rs 75 lakh in benefits. I invested Rs 15 lakh each in the dividend plans of five mutual funds—IDFC Core Equity, HDFC Hybrid Equity, Kotak Equity Opportunities, Kotak Standard Multi Cap and ICICI Pru Balanced Advantage. The dividends pay for our expenses. Today my portfolio is worth Rs 60 lakh. What should I do?
Raj Khosla Founder and Managing Director, MyMoneyMantra.com replies: Investing in equity funds is not a prudent strategy for retired individuals, especially those seeking a monthly income. Equity funds can be highly volatile and there is always the risk of losing your capital. Currently markets are severely disrupted due to the pandemic and you should hold onto your investments for a while. After 2-3 years, rebalance the portfolio and realign equity funds to debt or hybrid funds on the basis of your risk-return appetite. This will ensure capital protection and risk adjusted returns. To cater for monthly expenses, explore other fixed income options and savings instruments such as senior citizen FDs and SCSS.

I made short-term capital gains of Rs 6 lakh in a credit risk fund after holding it for 16 months. I also incurred capital loss of around Rs 9 lakh after redeeming from various equity funds. The equity fund investments were made in lumpsum and held for less than six months. All the liquidations/redemptions were made in 2019-20. Can I set off the short-term capital gains against short-term capital loss?
Jayant R. Pai CFP and Head - Products, PPFAS Mutual Fund replies: Any short-term capital loss from sale of equity shares can be set off against shortterm or longterm capital gain from any capital asset (including debt funds). In case the loss is not set off entirely, it can be carried forward for eight years and adjusted against any short or long-term capital gains made during those subsequent years. Hence you can offset the gain in debt funds against the loss in equity funds.