This is a commonly used terminology in Mutual fund industry which help Mutual fund investors to redeem or withdraw a specific amount of his money invested at a pre-defined frequency intervals by giving one time instruction to his AMC or Mutual Fund Company.
This facility helps two categories of investors
1. A investor who want withdrawl at regular internals during his retirement
2. A investor who is not confident about the Equity markets going forward, want to book profits at regular intervals
The SWP Plan results in superior or better returns vis-a-vis Lump sum one time withdrwal as it takes away the very important decision & element of timing the volatile equity markets
Practical Implication of Systematic Withdrawl Plan (SWP)
For a retail investor, who always try to time the volatile stock market can opt for SWP plan which would help him
Regards
Mayank Gupta
Founder
http://www.wealthbazaar.in/
This facility helps two categories of investors
1. A investor who want withdrawl at regular internals during his retirement
2. A investor who is not confident about the Equity markets going forward, want to book profits at regular intervals
The SWP Plan results in superior or better returns vis-a-vis Lump sum one time withdrwal as it takes away the very important decision & element of timing the volatile equity markets
Practical Implication of Systematic Withdrawl Plan (SWP)
For a retail investor, who always try to time the volatile stock market can opt for SWP plan which would help him
- avoid uncertainties &
- would help him avoiding his exit from Mutual funds scheme at the bottom of the markets where most of the retail investors exit due to extreme panic.
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Regards
Mayank Gupta
Founder
http://www.wealthbazaar.in/
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