This Mutual Fund SIP trick help you accumulate hefty amounts of money
Mutual Fund SWP: Planning and raising one's retirement corpus is like climbing Mt Everest! However, one must remember that the highest mountain has been conquered on many occasions.
Mutual Fund SWP: Planning and raising one's retirement corpus is like climbing Mt Everest! However, one must remember that the highest mountain has been conquered on many occasions. What one needs to do is to have proper financial planning and having a clear investment goal in mind. Systematic Investment Plans have made investing easier for those who are in the early phase of their career to plan for retirement, but all investments can't be for the long-term. There should be some relaxation when it comes to a partial withdrawal of your funds and that is where Systematic Withdrawal Plans come in handy.
Speaking on the importance of Systematic Withdrawal Plan (SWP) in one's portfolio Sousthav Chakrabarty, Co-founder & CEO, Capital Quotient said, "Whether, it is planning for your child’s marriage or education, there is no denying the fact that the expense is huge, which necessitates, investing early with correct financial planning. Not just his/her higher education or marriage, every stage of raising a child comes with a barrage of expenses for which a sufficient corpus is required. Systematic Withdrawal Plan (SWP) becomes pretty useful for managing several associated expenses whenever they crop up."
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Elaborating upon how does the SWP works for an investor, Vikas Puri, Vice President at Quant Capital said, "While choosing your SIP plan, you can pick the time period and the amount you want through SWP mode. This works as an additional income for the investor. In SWP, the number of NAVs that would amount to the amount sought would be sold out and the SWP amount would be credited to the investor's account online. However, an offline process for the same is also available." He said that if the amount sought in the SWP is higher than the net NAV value then the available amount in one's investment portfolio will be credited leading to zero amount in one's portfolio. "So, investors are advised to make a proper balancing in SWP and the SIP they are doing," said Puri.
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