Systematic Withdrawal Plans (SWPs) are increasingly popular among Indian investors who want regular income without compromising long-term growth. Recent statistics from the Association of Mutual Funds in India (AMFI) indicate a 15% rise in SWP registrations in Q1 2025 over the last quarter.
The major advantages of SWPs are:
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Regular income stream
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Tax efficiency
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Flexibility to change withdrawal amounts
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Ongoing investment growth
How to initiate an SWP:
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Select an appropriate mutual fund
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Create the SWP online or via your fund house
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Choose withdrawal amount and frequency
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Keep track and change as necessary
Experts suggest SWPs for retirees and passive income seekers. "SWPs provide a mix of liquidity and growth, and are thus suitable for multiple financial objectives," says Growmore Mutual Fund CEO Anita Basu.
With ongoing volatility in the market, SWPs offer a disciplined investment strategy that lets investors take advantage of regular cash flows and possible market rallies.
Sources: AMFI Report, Financial Express