Monica Malik Instagram – SIP and SWP are two different strategies used in mutual fund investing. While both of these investment approaches have their merits, they offer unique advantages. It’s important to determine which method suits your needs best.
👉 SIP (Systematic Investment Plan):
SIP involves regularly investing a fixed amount of money at predetermined intervals (e.g., monthly or quarterly) into a mutual fund. It allows investors to benefit from rupee cost averaging, buying more units when prices are low and fewer when prices are high.
👉 SWP (Systematic Withdrawal Plan):
SWP involves periodically withdrawing a predetermined sum or a specific percentage from your mutual fund investment. Its main objective is to provide a regular income while allowing the remaining investment to stay invested and potentially continue to grow.
👉 An illustration:
Suppose you initiate an SWP of ₹30 lakhs. You select a monthly withdrawal amount of ₹15,000, opt for a time frame of 20 years, and assume an average interest rate of 12%. This means that for the next two decades, you’ll receive ₹15,000 like clockwork every month. In total, your withdrawals will amount to 36 lakhs, and the final value of your money will be ₹1.5 Crore.
Disclaimer- The information provided on our platform is intended only for simplification and education purposes, and should not be considered as an investment advice.
#finance #financetips #investment #investingtips #education #financialfreedom #financialliteracy #reelsindia #reelkarofeelkaro #explore | Posted on 16/Sep/2023 12:10:35
