123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Know Everything About Sip And Swp

Profile Picture
By Author: Shashank Pawar
Total Articles: 57
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

What is Systematic investment plan (SIP)?
Systematic Investment Plan, mainly known as SIP investment lets you invest a fixed amount in the scheme of your choice, for regular intervals. It helps to generate good corpus if invested for a longer period of time. It helps in increasing the returns by preventing to put all the money when the market is at peak. SIP makes the investment as a habit. In SIP, an amount which you have mentioned in the application gets deducted from your savings account at a fixed date which you have selected. It is later put into the mutual fund scheme which you have opted for.
One can select the SIP frequency from monthly to weekly and even daily. Also, you can choose the amount of SIP and also put in additional amount if you find the returns are good and you have enough amount to invest. In debt, scheme SIP is less preferable as such schemes are less volatile and risky.
SWP plan basically lets you withdraw a certain amount of money at a regular interval from your lump sum investment. The amount and time can be decided in advance. SWP is beneficial for those who are retired and in need of a fixed source of income during their retirement period. Also, those who have some specific requirement such as fixed amount of cash for child's studies can also take advantage of this option.
How to withdraw money from mutual funds?

Directly through AMC

There are AMC portals through which you can withdraw money from mutual funds. Using your id and password one can redeem a whole or partial amount as per the need. Also, one can go to the AMC office and submit the redemption form to withdraw the amount. NEFT or cheque is sent once the redemption process is successful. Funds are generally credited after 3 working days.

Offline

In case scheme has been purchased through some agent, one needs to fill the details in mutual fund redemption form and submit it via an agent. After the redemption process, the amount gets credited in the account of the investor via NEFT or a cheque.

Online Portals

There are AMC partner portals which let you redeem the amount through loin id and password. With just a few clicks one can withdraw the money. Once the request is confirmed and processed the amount is directly sent to the linked account with the folio of the investor.

Trading or Demat account

In case investment is done via Demat or trading account then redemption process remains same. Using an e-payout one can send the redemption request. The amount is then sent to the bank account that is registered with the Demat account.
However, while withdrawing money, an investor should check two things. Certain schemes have an exit load wherein before a year if you withdraw the money, for instance, then a certain percentage of exit, a load is charged on the asset value. Secondly, in schemes, you need to check the minimum amount which can be withdrawn. Thus, read all the documents carefully before the withdrawal of the money.

SWP plan basically lets you withdraw a certain amount of money at a regular interval from your lump sum investment. Visit us to know more about SWP Mutual Funds Sahi Hai.

Total Views: 121Word Count: 542See All articles From Author

Add Comment

Investing / Finance Articles

1. What Are The Easy Ways To Apply Of Vehicle Loans
Author: Prabha Narak

2. Top 3 Stocks To Hold For Next 3 Weeks
Author: Stock Investor

3. Analysts About Vodafone Idea, Airtel, And Jio
Author: Stock Investor

4. Easy Home Loan With Repco Hfl
Author: Sushanth Singh

5. What Are The Best Investment Options?
Author: Maithili Pawar

6. How To Start A Trading Account In India?
Author: Maithili Pawar

7. Benefits Of Open Interest
Author: Maithili Pawar

8. What Are The Safe Investments With Good Returns?
Author: Maithili Pawar

9. Use Of Margin Calculator For Futures And Option
Author: Maithili Pawar

10. Securing Home Security Life With Security Cameras
Author: Ryan Justin

11. Why Payday Loans For People On Benefits Are Best For The Disability Borrowers?
Author: Jose Jacob

12. Why You Should Avail Quick Loans Bad Credit Same Day?
Author: Jose Jacob

13. Top Stocks To Buy For Short-term: Expert Views
Author: Stock Investor

14. Best Different Financial Services For Companies In India
Author: sravan

15. What The Heck Is Commodity Market In India?
Author: Sachin Pathak

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: