SWP
Plan for ELSS Fund
Fixed income chaiya, SWP se har mahine milega fixed income...
It is the most effective way to draw regular income post-retirement.
Point 1: What is a Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan or SWP allows you, the investor, to withdraw systematically on predefined dates from your mutual fund investments. It could be made monthly, quarterly, semi-annually or even annually. The withdrawals could be a fixed or a variable amount. SWP allows you to withdraw your mutual fund investments in a periodic fashion, and it is the most effective way to draw regular income post-retirement. This way, you are in better control of your investment for your liquidity needs and do not have to depend on dividends that aren’t guaranteed. The remaining investment in your mutual fund scheme would generate returns for you.
Point 2: How retirees can benefit from the SWP option?
SWPs are especially useful for retirees who are looking for a fixed stream of income. Regardless of whether you have a pension plan or not, if you plan to invest your lump sum retirement corpus in an SWP option, you can create your pension or a regular income source. SWP, if planned well, allows you to customise the flow of income at pre-defined intervals and amounts. Retirees have access to liquidity (access to your money invested in the mutual fund scheme) with definite regular income, irrespective of the market fluctuations. SWP helps preserve wealth for future expenses; as you withdraw in pre-defined intervals, the remaining balance amount clocks return for you.