What is Systematic Withdrawal Plan? You must have heard about Systematic Investment Plan and it might be that you have subscribed for this plan. But, have you ever heard about Systematic Withdrawal Plan? Did your Investment Adviser ever advise you for it? I am going to give you full information about it, in this Article.
What is Systematic Withdrawal Plan.
It is a facility provided by Asset Management Companies, in which Investors can withdraw a part of their investment in a stipulated time period.
It is like a Monthly Income Scheme provided by Banks and Post Offices. Investors generally use this plan to gain a continuous income from their Mutual Fund.
Investors want to find a certain amount of their profit in a stipulated time period. It can be monthly, half yearly or yearly basis.
Investors, generally invest in this plan thinking that after a certain time they withdrew the profit and they expend that amount on their tour plan or for their Daughter's Marriage.
There are two options provided by Asset Management Companies to the investors, one is Fixed withdrawal option and second is Appreciation Withdrawal option.
 |
| systematic withdrawal plan |
What is Systematic Withdrawal Plan.
It is a facility provided by Asset Management Companies, in which Investors can withdraw a part of their investment in a stipulated time period.
It is like a Monthly Income Scheme provided by Banks and Post Offices. Investors generally use this plan to gain a continuous income from their Mutual Fund.
Investors want to find a certain amount of their profit in a stipulated time period. It can be monthly, half yearly or yearly basis.
Investors, generally invest in this plan thinking that after a certain time they withdrew the profit and they expend that amount on their tour plan or for their Daughter's Marriage.
There are two options provided by Asset Management Companies to the investors, one is Fixed withdrawal option and second is Appreciation Withdrawal option.
Systematic Fixed Withdrawal
In the first option investors are allowed to withdraw a certain amount after a certain time on monthly, quarterly or half yearly basis. Investors ensure in the beginning of the plan that what amount they want and when it be needed.Appreciation Withdrawal plan
In this option AMCs give facility to investors to withdraw appreciated amount after a certain period. It is just like Monthly Income Scheme. And it is just opposite of SIP.
Benefits of SWP.
An investor can create a regular flow of income from his investment in this plan. If the investor want to have periodic incomes for their needs, he should go for this option.
It should be created in such a way that he could get the money when he needs the cash most. If a serviceman is going to retire after twenty years, then he can invest in a Mutual Fund Plan with SWP option.
In this way he sets the required amount to be withdrew every month as pension. As you know that government has abolished the provision for Pension these days. So, it is a substitute for pension too.
So friends, if you like this information useful then let me know, with your comments in comment box.
It should be created in such a way that he could get the money when he needs the cash most. If a serviceman is going to retire after twenty years, then he can invest in a Mutual Fund Plan with SWP option.
In this way he sets the required amount to be withdrew every month as pension. As you know that government has abolished the provision for Pension these days. So, it is a substitute for pension too.
So friends, if you like this information useful then let me know, with your comments in comment box.
No comments:
Post a Comment