SIP and SWP- Let's know which Mutual Fund scheme is right between SIP and SWP, know full details

Human life is full of uncertainties, there is no way to know what will happen here, so we must be prepared for our future, especially for financial difficulties. In such a situation, you should invest a part of your earnings in a place where you get good returns, in ancient times people used to invest in the scheme of the Postal Department, then in FD, and now Mutual Fund is a unique way through Systematic Withdrawal Plan (SWP), let's know full information about it-

What is SWP?

A Systematic Withdrawal Plan (SWP) allows you to withdraw a predetermined amount from your mutual fund at regular intervals. Unlike a Systematic Investment Plan (SIP), where you invest a fixed amount.

How does SWP work?

You invest ₹ 1 lakh in a mutual fund. If you want to withdraw ₹10,000 every month, you can set this amount as your withdrawal limit. The balance in your mutual fund will vary depending on the market performance, but your monthly withdrawal will remain constant, giving you a steady income.

Key Benefits of SWP

Regular income: SWP can serve as a steady income source after retirement, similar to a salary, ensuring financial stability during your post-employment years.

Flexibility: You can adjust the withdrawal amount and frequency as per your financial needs.

Growth potential: While your withdrawal remains fixed, your investments have the growth potential, allowing you to benefit from market fluctuations over time.

Easy activation: To start a SWP, all you need to do is activate the plan within your existing mutual fund. Once set up, your funds will be transferred to your bank account on the scheduled date.