Create Your Regular Cash Flow Income By Top SWP Funds.

SWP The smart way to invest and withdraw!

What is SWP ?

A systematic withdrawal plan (SWP) gives you a chance to withdraw cash from a mutual funds account as indicated a regular schedule that you choose. It’s an advantageous method to draw down your holdings  after some time. SWP is a fund to get ready for your retirement and other consistent month to month pay needs.

How SWP benefits investors and Why to invest in SWP?

For example, you have 8,000 units in a mutual fund scheme and you want to withdraw Rs.10,000 every month through SWP. Now let’s assume that on February 1, the Net Asset Value (NAV) of the scheme is Rs. 20.

The equivalent number of MF units for withdrawing Rs. 10,000 will be 500 (Rs. 10,000 / Rs. 20), So 500 units would be redeemed from your MF holdings, and Rs. 10,000 would be given to you.  

Advantages of SWP :

  1.       Sure Fixed payout
  2.       Taxation
  3.       No Market Risk
  4.       Financial Independence
  5.       Rupee Cost-Averaging 
  6.       Disciplined Withdrawal

Types of SWP :

·  Fixed withdrawal : the investor specifies the amount he/she wishes to withdraw from the fund on a monthly/quarterly basis.

· Appreciation withdrawal : the investor can withdraw the appreciated amount on a monthly/quarterly basis.

Top SWP Mutual Funds :

ICICI Prudential Balanced Fund – Growth option 

If you had started a monthly SIP of  5,000 on November 3, 1999, then you would have accumulated a corpus of 45.77 Lacs as on today (based on NAV of 15/07/2016) whereas you had invested only 10.50 Lacs through 201 installments of  5,000 each. During this period the fund has given a XIRR return of 16.28% which is one of the best amongst the peer group of schemes.

Birla Sun Life Balanced 95 Fund – Growth option 

If you had invested 10 Lacs in Birla Sun Life Balanced 95 Fund – Growth Plan on January 1, 2001 and withdrawn 8,000 per month from January 2, 2002, then the current value of your investment would have been 61.06 Lakhs even after withdrawing 14.00 Lakhs. We presumed that the monthly SWP withdrawal of 8,000 was started after one year (starting date January 2, 2002) from the date of investment (January 1, 2001) and thereafter on the 2nd day of every month so that each and every SWP amount in the hands of the investor is tax sufficient.

SBI Balanced Fund – Growth option.

If you had invested 10 Lacs in SBI Magnum Balanced Fund – Regular Plan – Growth , 11 years back (July 25, 2005) and withdrawn  8,000 per month after one year (July 26, 2006), then the current value of your investment would have been  26.17 Lakhs even after withdrawing  9.68 Lakhs over a period of 10 years.

We assumed that the monthly SWP withdrawal of 8,000 was started after one year (starting date July 26, 2006) from the date of investment (July 25, 2005) and thereafter on the 26th of every month so that each and every SWP amount in the hands of the investor is tax sufficient.

Reliance Regular Savings Fund – Balanced Option.

If you had invested 10 Lacs in the NFO of Reliance Regular Savings Fund Balanced Option – Growth Plan on June 8, 2005 and withdrawn  8,000 per month from June 9, 2006, then the current value of your investment would have been  20.92 Lakhs even after withdrawing  9.76 Lakhs.

We came to this conclusion by presuming that the lump sum investment of 10.00 Lakhs was made on the Scheme inception date i.e. June 8, 2005. We also presumed that the monthly SWP withdrawal of  8,000 was started after one year (starting date June 9, 2006) and thereafter on the 9th day of every month so that each and every SWP amount in the hands of the investor is tax sufficient.

Need Financial Advisor to choose a best fund to invest. Just go through the Website : www.gfswc.com and Call us at 8010926281.

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