SWP
Systematic Withdrawl Plan
(Monthly Regular Cash Flow)
Financial Planning
It involves 3 stages
1. Wealth Accumulation : when the investor invests the money over a period of time
2. Wealth Creation : when the invested amount grows over the invested period
3. Wealth Distribution : when the investor seeks to enjoy benefits of the funds accumulated in the investment portfolio.
SWP (Systematic Withdrawal Plan): Stage 3
Once you have created corpus through SIP or invested lump sum amount , one can register for SWP in mutual funds, It is unique facility to create a regular income flow from your mutual fund investments.
Life Stages
One can put lump sum amount in Mutal funds & can chose amount (How much you want regularly), frequency (Monthly, Quarterly) & Period (Till which date you want to keep regular cash flow), It can use in different life stages as follows
SWP for Pocket Money to Student
SWP to Support Parents
SWP as Pension
Retirement through SWP
Systematic Withdrawal Plan (SWP) can be utilized by those who are planning for their retirement in the coming years. Usually the large amount of money that one receives at the time of retirement is invested in traditional savings instruments like FD's which attract income tax at the normal rates. Instead, they can make a lump sum investment in mutual funds with SWP facility. In this case, along with earning capital appreciation on the invested amount, he/she can receive a fixed amount monthly. It will help you in getting a regular income like salary even after retirement.
Advantages of SWP
1. Disciplined Withdrawal
2. Fixed Income
3. Capital Appreciation
4. Tax Efficient
5. Life Stage Solution especially Retirement
Regards
Rasmeet
#SudayConnect
Green Hedge Capital
