Get Maximum FlexibilityIn an SWP plan, the investor has the flexibility to choose the amount and frequency according to his/her needs. Also, the investor can stop the SWP at any point in time / or can add further investments, or even withdraw amount over and above the fixed SWP withdrawals.
Get Regular IncomeSWP in mutual funds facilitates investors by providing a regular income from their investments. Therefore, this becomes highly convenient and useful for those who need regular cash flow for meeting regular expenses.
Get Capital Appreciation As we can see in the example above, if the SWP withdrawal rate is lower than the fund's return, the investor gets some capital appreciation too in the long term.
Get Better Tax TreatmentWhen units are redeemed to withdraw the SWP amount, it attracts capital gain on the profits made from the sale of units, in which there is no TDS and also taxed moderately compared to the dividend (IDCW) options of MF, FDs, and other small savings schemes.
