Systematic Withdrawal Plan

Systematic Withdrawal Plan

Many mutual funds offer withdrawal programs whereby shareholders receive payments from their investments. These payments are usually drawn from the fund’s dividend income and capital gain distributions, if any, and from principal only when necessary.

What makes SWP a wise strategy?

Withdrawals (also referred to as “redemption”) attract no Tax Deducted at Source
Please note that Capital Gains Tax will chargeable on the withdrawn amount.
SWP can be set up to withdraw only the appreciation made on a particular investment. In this way your capital stays invested while you continue to enjoy the gains periodically.

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Systematic Transfer Plan
Types of Mutual Funds

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