SIP and SWP- Let's know which mutual fund SIP and SWP are right for investment, know in detail

In a country with a plethora of savings schemes, the Department of Posts collaborates with banks to offer its own savings schemes. However, for higher returns, investors often look for alternative avenues. In this context, Systematic Withdrawal Plans (SWP) in mutual funds are emerging as viable alternatives, which offer significant profit potential.

Despite the recent increase in FD (FD) interest rates, mutual funds through SWP Offers unique benefits, that make retirement life potentially stress-free.

Understanding Systematic Withdrawal Plan (SWP):

SWP allows investors to withdraw a fixed amount from their mutual fund investments at scheduled intervals. Unlike Systematic Investment Plans (SIP), where a fixed amount is deposited in the fund, SWP allows investors to systematically withdraw money from their investments.

Power of SWP in Retirement Planning:

SWP can be an invaluable tool for post-employment financial security, which provides a fixed income stream during retirement. Activating the SWP scheme within your existing mutual fund plan and setting a withdrawal limit ensures that a predetermined amount is transferred to your bank account at scheduled intervals.