Mutual Fund SIP-SWP: Everyone is concerned about their retirement expenses, which is why they invest in various areas. If you haven’t already done so, start now because your monthly salary will end when you leave the position. Today, we’re going to tell you about several unique investments that will provide you with a substantial monthly pension after you retire.
Pension arrangement from SWP
If you wish to invest without risk, consider SWP, or Systematic Withdrawal Plan, which is different from SIP in that you would get the money as a pension every month. If you complete a monthly SIP of 5 thousand rupees for 20 years, you can obtain a monthly pension of up to 35 thousand rupees.
What exactly is the Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) is an investment in which the investor receives a set amount of money from a mutual fund plan. In this case, the investor decides how much money he needs to remove and when. You can withdraw money from SWP on a daily, weekly, monthly, quarterly, six-month, or yearly basis.
Systematic Investment Strategy (SIP)
Please explain how you can receive a large pension by investing $5,000.
SIP for a period of up to 20 years
SIP of Rs 5000 per month
Tenure 20 Years
12 percent expected return
Rs 50 lakh net value
Now, for a higher profit, you invest these 50 lakh rupees in several SWP programs. If the expected return is 8.5 percent, you will receive a monthly pension of 35 thousand rupees. Let’s see how it goes.
SWP for 20 years
Investing in various plans 50 lakh rupees
8.5 percent expected return
The annual return is Rs 4.25 lakh.
4.25 lakh/12 = Rs 35417 per month
Discover the advantages of SWP.
The main advantage of SWP is that it is a recurring withdrawal.
This allows for the redemption of scheme units.
If there is any money left over after the time limit, you get it.
Aside from that, taxation will be applied in the same way that it is for equity and debt funds.
Investors will have to pay short-term capital gains tax if the holding period is less than 12 months.
If you are investing in a scheme, you can also activate the SWP option in it.