What is Systematic Withdrawal Plan? How different is it from SIP | Mutual Fund- Watch Video

Each person has unique financial needs. As a result, each investor has an own investment strategy. While some investors like to make their deposits all at once, others choose to spread them out over time using a systematic investment plan (SIP). While some investors look for capital gain, others want their investments to generate consistent income. To suit the needs of various sorts of investors, fund houses offer a wide range of instruments and facilities. A Systematic Withdrawal Plan (SWP) is one such option. In this essay, we'll go over some crucial details concerning SWP that you should be aware of.

What is Systematic Withdrawal Plan (SWP)?

A Systematic Withdrawal Plan, known as SWP, is a service offered to investors that enables them to consistently withdraw a set amount from a mutual fund plan. The withdrawal amount and frequency are up to you. You can also decide to retain your original investment intact and merely extract the profits. Units from your portfolio are sold on the designated date, and the proceeds are deposited into your account.