top of page
Search

Systematic Withdrawal Plan (Opposite of SIP) - Explained




What is a mutual fund's SWP?


The SWP is a mutual fund investment in which you specify that a set amount of money be transferred from your mutual fund investment to your bank account on a regular basis. Assume you're seeking for an investment option that will allow your investment to grow while also allowing you to collect money from the corpus on a regular basis. The money can be credited to your bank account on any day of the month, quarter, or year that you specify. By redeeming mutual fund scheme units at regular periods, the SWP Plan provides cash flow. You will continue to receive regular payments through SWP for the time period you specify or until the corpus amount is depleted.


For example, an investor may contribute Rs. 10 lakh and request that Rs. 10,000 be paid every month on the first. Then, on the first of every month, units valued Rs. 10,000 will be redeemed.


SWP is a good option for people who desire a regular source of money in their account throughout their retirement years or who want a regular base of money.


The opposite of the Systematic Investment Plan is the Systematic Withdrawal Plan (SIP). SIP, on the other hand, is a method of investing in a mutual fund plan on a regular basis. SWP offers you with consistent cash flow and helps you to build your mutual fund investment. There are three compelling reasons to use a methodical withdrawal strategy.


It's crucial to keep in mind that the tax treatment of dividends and SWPs differs, so investors should prepare accordingly.



Comments

Connect with us

  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube

Incubated at MNIT Innovation and Incubation Centre

ww1.png
ww30.png

We are recognized by DPIIT as a startup.

Startup-India-creates-5-5-lakh-jobs-and-recognises-50000-startups-in-5-years.png
857-8570158_make-in-india-programme-make-in-india-logo.png

Disclaimer

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject Myrupaya.in or its owners/affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by us based upon projections which have been determined in good faith by Myrupaya.in its administrators and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. Myrupaya.in does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared based upon projections which have been determined in good faith and sources considered reliable by Myrupaya.in. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

bottom of page