\nSystematic Withdrawal Plan or SWP is one of the key benefits of investing in Mutual Funds. Systematic Withdrawal Plan is a facility which enables the investors to withdraw money at regular intervals as per their income needs. It helps them to create a system of regular cash flow in a systematic manner where the rest of the amount keeps on earning interest.<\/p>\n
SWP is easy to setup and easy in functioning:
\n1. Investors can request for redemption from their Mutual Fund scheme in installments.
\n2. The number of units will be reduced equivalent to the withdrawn amount.
\n3. Funds after redemption come directly into investors\u2019 linked bank accounts.
\n4. Investors can use the funds as per their goals – for meeting regular expenses after retirement, for investing in other assets or as a second source of income.<\/p>\n
Some key benefits of SWP are:
\n1. Investors can set up SWP in such a way that only the capital gains are redeemed every month or at pre-defined intervals.
\n2. Balance amount continues to earn interest
\n3. Amount required regularly or as lump sum can be calculated easily by using an online calculator<\/p>\n
Some important points to keep in mind before starting SWP are:
\n1. Investors should check the exit load and other expenses.
\n2. Any lock in should be checked before investing in a scheme as all schemes might not be eligible or provide SWP option.
\n3. Taxation aspects should be taken into account before starting a SWP for both equity as well as debt Mutual Funds.<\/p>\n
Systematic Withdrawal Plan or SWP is one of the key benefits of investing in Mutual Funds. Systematic Withdrawal Plan is a facility which enables the investors to withdraw money at regular intervals as per their income needs. It helps them to create a system of regular cash flow in a systematic manner where the rest […]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-4134","post","type-post","status-publish","format-standard","hentry","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4134"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4134\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}