Systematic Withdrawal Plan (SWP)

Systematic Withdrawal Plan (SWP)

Overview:

• Investment: Invest in the growth plan of a mutual fund scheme.
• Payout: Specify a fixed amount to be paid out Monthly/Quarterly/Half Yearly/Yearly
• Redemption: On a designated date, units amounting to the fixed amount are redeemed.

Example:

• Investment Amount: ₹10 lakhs
• Monthly Payout: ₹5000
• Process: Units worth ₹5000 are redeemed on the 1st of every month. The amount is deposited in your account as per the prescribed period.

Key Points:

• Regular Withdrawals: You redeem units worth your prescribed amount at regular intervals.
• Investment Statement: Your investment amount will decrease with each withdrawal.
• Remaining Value: Calculated as NAV x remaining units.
• Tax Treatment: SWP is treated as Capital Gains.

Choosing a Realistic SWP Amount:

• It's important to choose a realistic SWP amount to preserve the invested amount over time.

Assumed Calculations:

• Investment Amount: ₹10 lakhs
• Assumed Returns on Investment: 8% P.A.
• Investment Period 5 Years

SWP facility is not a guarantee of assured return or capital protection

Uddhav Krishnarao Tulshibagwale - AMFI Registered Mutual Fund Distributor, Udyam Investments Disclaimer

The information provided through any communication or media about various categories of mutual fund schemes is for informational purposes only. It aims to create awareness about mutual funds as a financial product category and is not intended for sales promotion or solicitation of business.

• The content is based on publicly available information, internal sources, and other third-party sources believed to be reliable. However, we cannot guarantee its accuracy or completeness.
• Individual investor objectives, risk appetite, financial needs, and circumstances are not considered in this content. Investors should consult their professional investment adviser, consultant, or tax advisor for personalized advice.
• A mutual fund scheme is not a deposit product and is not guaranteed or insured by the mutual fund or its AMC.
• Due to the nature of underlying investments, returns or potential returns of a mutual fund product cannot be guaranteed.
• Historical performance, when presented, is for reference purposes and does not guarantee future results.

Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.