Thick Brush Stroke

What is SWP in Mutual Fund?

Thick Brush Stroke

Some people invest in mutual funds for regular income and also look at the option of receiving dividends.

Thick Brush Stroke

Many such schemes, especially related to Debt, give you the option of monthly or quarterly dividends.

Thick Brush Stroke

The quantum of additional distributable amount depends on the movement of the markets and the performance of the fund.

Thick Brush Stroke

There is another source of monthly income: the use of Systematic Withdrawal Plan (SWP).

Thick Brush Stroke

Here you have to invest in the growth plan of the scheme, in which a specified amount of monthly payment has to be fixed every month.

Thick Brush Stroke

On a specified day, units equal to that specified amount are withdrawn.

Thick Brush Stroke

In SWP and Dividend, the tax treatment is different And the investor should make his plan keeping this in mind.

Thick Brush Stroke

Mostly Retired Persons like this plan.