What is an SWP?
A Systematic Withdrawal Plan (SWP) is a way to get regular income from your investments in mutual funds. It allows you to withdraw a fixed amount from your investment at regular intervals, such as monthly, quarterly, or annually. Instead of earning interest from a fixed deposit, SWP gives you the benefit of regular income while your remaining money continues to grow.
Who can use this plan?
Anyone who wants regular cash flow from their mutual fund investments can use an SWP. It is ideal for retirees, professionals looking for side income, or anyone who wants financial stability without withdrawing all their savings at once
Benefits of SWP
1
Regular Income
SWP provides a steady stream of income, which can help manage monthly expenses.
2
Tax Advantage
Only the gains from your withdrawals are taxed, not the entire amount.
3
Tax Rupee Cost Averaging
You withdraw regularly, reducing the risk of market ups and downs.
4
Continued Growth
Your remaining investment stays in the market and can grow over time.
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Planning a Happy Retirement through SWP
SWP is a good tool for planning your retirement income. You can invest your retirement savings or final settlements in a mutual fund scheme and use SWP to withdraw a fixed amount every month. This gives you a consistent income, like a monthly pension, while your remaining money keeps growing.
Where to Park Your Funds
When retiring, you can park your hard-earned money in a well-chosen, stable mutual fund. This way, your savings can generate monthly income and keep earning returns over the years, helping you meet your expenses and lead a stress-free, financially secure retirement.
Mutual Funds
Lumpsum
SIP
SWP
STP
