SIP vs SWP: Which Investment Strategy is Best for Your Financial Goals?
Although almost everyone knows the meaning of SIP, have you ever heard about SWP?
Often the best investors advise to invest as per SWP so that we can continue getting its benefits in future also.
SWP
is a smart investment plan, through which investors can withdraw money regularly.
To start a
SWP (Systematic Withdrawal Plan)
, one has to first start an SIP for some time, which after some time becomes a good amount of interest.
According to a recent report, by investing Rs 25,000 in SIP, investors can still have up to Rs 7 crore saved in the end despite SWP.
Suppose you deposit up to Rs 25,000 every month in an equity fund for 20 years, then you will have a total of Rs 2 crore at the rate of 10.5%.
Then if you withdraw Rs 1.5 lakh every month, you will withdraw a total of Rs 3.6 crore in this duration.
Despite this, when 40 years are completed, you will still have Rs 7 crore left.
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