Last week, I came across an advertised from SBI Mutual Fund in ET Wealth where the AMC extolled the virtues of Systematic Withdrawal Plan (SWP) from an equity mutual fund. Through an illustration, SBI AMC tried to demonstrate how a SWP from an equity fund is a better choice than fixed deposit for regular income. One of the excerpts in the ad was “Traditional Saving … [Read more...] about How SBI Mutual Fund is misleading Investors through its Advertisements?
systematic withdrawal plan
During a discussion, a friend mentioned that he was looking for a regular income and wanted to set up a Systematic Withdrawal Plan (SWP) to generate such income. He asked me the equity fund (from his existing portfolio) where he should set up a SWP. I told him the approach could be risky. He couldn’t understand why. After all, he has been investing through SIP for many years … [Read more...] about Why Systematic Withdrawal Plan (SWP) from Equity Funds is a bad idea?
Many of us are familiar with Systematic Investment Plans (SIPs), where you invest a fixed amount every month in mutual funds in order to generate a corpus over the long term. However, not many are aware of a closer cousin Systematic Withdrawal Plans (SWP). SWP is the opposite of SIP. In SIP, you invest small amount every month to create a corpus. Under SWP, you systematically … [Read more...] about PFP Primer: All you need to know about Systematic Withdrawal Plans