SWP: Earn Regular Monthly Income on your investment through SWP(Systematic Withdrawal Plan)

Published By:- 

Anand (B.Tech, M.Tech, MBA Finance) 

Mob :- 9415283904

SWP in mutual funds and How it works.

1.  SWP stands for Systematic Withdrawal Plan, which is a facility offered by mutual funds to investors that enables them to withdraw a fixed amount of money at fixed intervals from their investment. Essentially, an SWP is the reverse of Systematic Investment Plan (SIP), which allows investors to invest a fixed sum of money at regular intervals.

2.     With an SWP, investors can receive a regular stream of income from their mutual fund investment while still keeping the invested amount intact. It is a useful option for those who want to earn regular income from their mutual fund investments, such as retirees or those looking for a steady income stream to supplement their salary.

Here's an example of how an SWP works:

3.      Suppose an investor has invested Rs. 10 lakhs in a mutual fund, and they want to receive Rs. 5,000 every month as a regular income. They can opt for an SWP of Rs. 5,000 per month, and the mutual fund company will sell units worth Rs. 5,000 every month and transfer the money to the investor's bank account.

4. SWP is an excellent option for investors who want to generate a steady income stream while also keeping their investment intact. As per the performance track CAGR seen over a period of 25 years, Funds gives more than 10% returns per year in most cases, returning 5000 per months to investor amounts to returning 6% yearly to investor. Hence left 4% return adds on to the original corpus amount which ultimately grows at the rate of 4% despite giving 5000 to investor each month. 

5. For more info on the very safe SWP Scheme of mutual fund contact me on mobile number 9415283904 and seek professional advice before opting for it.