Mutual Fund SIP-SWP: If you are also conscious about your retirement and want your old age to be happy, then you should start preparing for it now.
You will not get salary after retirement, so planning is very important for how your expenses will be run. Let us tell you today a better option in which you can get the best pension by making small investments.
Arrangement of pension from SWP
You need such an investment option, which also gives good returns and also has less exposure to the stock market. You all know about SIP i.e. Systematic Investment Plan, in which you invest some amount every month, but we are going to tell you just the opposite about SWP i.e. Systematic Withdrawal Plan, from which you will get the amount every month. Consider the pension itself.
We are telling you here how by doing a monthly SIP of Rs 5 thousand every month for 20 years, you can arrange a pension of 35 thousand rupees for yourself every month for the next 20 years.
Systematic Withdrawal Plan (SWP)
Through Systematic Withdrawal Plan (SWP), investors get back a fixed amount from a mutual fund scheme. The investor himself decides how much money to withdraw in how much time. Under SWP, this money can be withdrawn on daily, weekly, monthly, quarterly, 6 months or yearly basis. If the investor wants to withdraw only a certain amount or if he wants, he can withdraw the capital gains on the investment.
Systematic Investment Plan (SIP)
Under Systematic Investment Plan, you get the facility to invest on a monthly basis instead of investing a lump sum amount in a mutual fund scheme. You can decide for yourself how much to invest in a scheme every month. The advantage of this is that here your entire money is not blocked even at one go. Rather, you can invest in it monthly at your convenience. Along with this, it is also possible to increase or decrease the SIP by assessing the returns from time to time.
SIP up to 20 years
Monthly SIP Rs 5000
Tenure 20 Years
Estimated Return 12%
Net Value Rs 50 Lakh
Now put this 50 lakh rupees in different schemes for SWP. If the estimated return is 8.5%, then you will get a monthly pension of 35 thousand rupees.
20 years SWP
Investment in different schemes Rs 50 lakhs
Estimated return 8.5%
annual return Rs 4.25 lakhs
monthly return 4.25 lakhs/12 = Rs 35417
Advantages of SWP
SWP is regular withdrawal. Through this, redemption of units from the scheme takes place. If there is surplus money after the stipulated time, then you get it. It will attract the same tax as in the case of equity and debt funds. Where the holding period does not exceed 12 months, investors will have to pay short term capital gains tax. If you are investing in any scheme then you can activate the SWP option in it.
