Systematic Withdrawal plan can be used to withdraw money into your bank account directly. Say you have accumulated corpus of 1 crore in your mutual fund portfolio. Instead of withdrawing fully, you can use this option to withdraw monthly a fixed amount.

How to use SWP at the end of SIP ?

If you had started investing in SIP and accumulated a huge corpus then it is easy to withdraw by using Systematic Withdrawal Plan.

Say you accumulated 3 crores at the end of 20 years by SIP. Now you can withdraw 6% or 7% alone every month and then the rest of the amount can grow in this equity fund itself.

Even if you have Lumpsum amount and need monthly returns, this can be used for pensioners

ICICI Mutual fund, Motilal Oswal & UTI mutual fund started offering a combination of SIP & SWP together.

ICICI Mutual fund AMC offers Freedom SIP plan as an option. They provide separate Application form where the investors will be provided an option to choose a SIP fund and also an option choose SWP option at the end of SIP tenor.

This podcast is hosted by Ganesan Thiru. I provide solutions for Investing in Mutual Funds, Stocks, Fixed Instruments, NCDs, Commercial Real Estate etc.,

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