When you get closer to the big stops of life like retirement or going to your dream vacation, the direction of your investment also changes. Often it moves away from making money and turns to regular income. In such a situation, the question is not only that “how to invest”, but also happens that how to withdraw money from mutual funds without risking the necessary economic security for a long time. It is here that the Systematic Vidrol Fund (SWP) comes in the form of a true “Nivesh Ka Sahi Kadam”. A smart, planned method that regularly conveys the benefits of your investment to you.
What is Systematic Vidrol Plan (SWP)?
Systematic withdrawal Plan (SWP) allows you to withdraw a certain amount from a mutual fund at a regular interval (eg every month, three months or annually). The rest of the amount remains in the fund and also keeps increasing due to the investment being on. You can understand this in reverse of the Systematic Investment Plan (SIP) – in SIP you invest regularly, while in SWP you withdraw money regularly. This gives you the necessary cash according to your needs over time.
Why is sahi kadam for your financial goals
1. Regular and estimated income
SWP keeps giving you cash regularly. Especially it is better for such retired people or regular income seekers who do not want to withdraw their entire investment money simultaneously. Then it is for the expense of the month, to visit every three months or an annual celebration – SWP gives you the freedom to fix the money and the period of withdrawing the period.
2. Your money is invested in investment
The remaining amount of your remaining amount remains in investment in SWP. In such a situation, there is the benefit of earning possible returns and growing markets over time. This means that the opportunity to grow your property remains intact, while your cash -related needs are also fulfilled.
3. Protects from withdrawing money in disciplined and haste
SWP, especially during market instability, protects you from emotional decisions and wrong timing. Due to the automatic withdrawal in it, you suddenly protect you from taking decisions in emotions, which keeps the balance.
4. Convenience of change according to the needs of life
Along with life, your financial needs also change constantly. In such a situation, according to your goals and tax related priorities, you can make SWP according to you – whether you withdraw a fixed amount, withdraw a profit or some part of the capital. This flexibility is beneficial for retired people, entrepreneurs or people entering any new phase of life.
5. Better in terms of tax and also secured capital
SWP may be more tax-friendly than traditional income sources. Especially when it is planned by planning with equity or date mutual funds. If you want, you can only remove profits and keep the principal as long as you want.
How to start SWP?
Step 1: Assess your needs:
Assess your regular expenses according to inflation and lifestyle.
● Step 2: Choose the right fund:
Date funds are more popular for stability. Hybrid or equity funds are better for those who want growth.
● Step 3: Set withdrawal amount and time:
Remove such amount so that your needs are met, but your invested money does not end quickly.
Step 4: Start SWP:
Fill the SWP form from your mutual funding unit – Fill the name, amount of funds and money withdrawal.
Subbu’s ‘Sahi (right) advice’ – withdraw money as careful as you invest carefully.
Subbu’s uncle has collected funds for his retirement. Now they are not able to take any decision on how to use it. In the video, explain to your uncle that, just as SIP helps you systematically create money, so SWP helps you enjoy that money in a disciplined, durable manner. This is the way to plan withdrawal, so that your dreams can be fulfilled without any financial stress, or without any financial stress.
For more information, see here:
Disclaimer: Mutual fund investment is subject to market risk. Read all the documents related to the scheme carefully before taking the investment decision. Performance of a fund in the past is not a guarantee of performance in future.