• MUTUAL FUND
  • INDEX FUND
  • ETF
  • PMS
  • AIF
  • PARTNERS
  • INVESTOR EDUCATION
  • INTERNATIONAL BUSINESS
No Result
View All Result
  • Home
  • Blog
    Association of Mutual Funds in India: MF Association Role & Objectives

    Association of Mutual Funds in India: MF Association Role & Objectives

    What are Auto Sector funds? Are they a good investment option?

    What are Auto Sector funds? Are they a good investment option?

    Balanced Advantage Funds & How to invest in them

    Balanced Advantage Funds & How to invest in them

    How to Invest in Index Funds

    How to Invest in Index Funds

    How to Build an Investment Portfolio for Beginners

    How to Build an Investment Portfolio for Beginners

    SIP Funds to Invest In Future

    SIP Funds to Invest In Future

    Know How Much Salary To Save To Invest In Mutual Funds

    Know How Much Salary To Save To Invest In Mutual Funds

    Importance of Financial Planning

    Importance of Financial Planning

    A Complete Guide on ELSS Funds

    A Complete Guide on ELSS Funds

    Trending Tags

    • Videos
      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      Performance be a by-product

      Performance be a by-product

      What is Real Investing and why it requires grit and stubbornness?

      What is Real Investing and why it requires grit and stubbornness?

      5 Reason to Boost your SIP

      5 Reason to Boost your SIP

      Understanding the types of Mutual Funds

      Understanding the types of Mutual Funds

      Why SWP is wise decision than investing in Fixed Deposits?

      Why SWP is wise decision than investing in Fixed Deposits?

      Why you should diversify your portfolio?

      Why you should diversify your portfolio?

      What is NAV

      What is NAV

      Trending Tags

      • Mutual Fund Basics
      • Financial Goals
      • Asset Allocation
      • Basics of Investing
      • SIP
    • Podcast
      Ep. 13: Wisdom Tree (Part 2)

      Ep. 13: Wisdom Tree (Part 2)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 11: The Investor’s Playbook

      Ep. 11: The Investor’s Playbook

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 08: Value Migration

      Ep. 08: Value Migration

      Ep. 07: Wealth Creation Studies

      Ep. 07: Wealth Creation Studies

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Trending Tags

      • Basics of Equity
    • 5 Keys of Investing
      5 Key points to keep in mind for budding investors

      5 Key points to keep in mind for budding investors

      5 Key ways to handle market volatility

      5 Key ways to handle market volatility

      5 Key New Year resolutions for investors

      5 Key New Year resolutions for investors

      5 Key situations and errors to be avoided by investors

      5 Key situations and errors to be avoided by investors

      5 Key investing lessons from the Mahabharata

      5 Key investing lessons from the Mahabharata

      5 Key investment lessons we could learn from Holi

      5 Key investment lessons we could learn from Holi

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key mistakes investors should avoid while investing in ELSS

      5 Key mistakes investors should avoid while investing in ELSS

      Trending Tags

      • Basics of Investing
      • Basics of Equity
      • Financial Goals
      • Index Fund
      • Asset Allocation
      • SIP
      • Mutual Fund Basics
    • Wealth Creation Thoughts
    • Home
    • Blog
      Association of Mutual Funds in India: MF Association Role & Objectives

      Association of Mutual Funds in India: MF Association Role & Objectives

      What are Auto Sector funds? Are they a good investment option?

      What are Auto Sector funds? Are they a good investment option?

      Balanced Advantage Funds & How to invest in them

      Balanced Advantage Funds & How to invest in them

      How to Invest in Index Funds

      How to Invest in Index Funds

      How to Build an Investment Portfolio for Beginners

      How to Build an Investment Portfolio for Beginners

      SIP Funds to Invest In Future

      SIP Funds to Invest In Future

      Know How Much Salary To Save To Invest In Mutual Funds

      Know How Much Salary To Save To Invest In Mutual Funds

      Importance of Financial Planning

      Importance of Financial Planning

      A Complete Guide on ELSS Funds

      A Complete Guide on ELSS Funds

      Trending Tags

      • Videos
        Understanding the different Mutual Fund categorizations by Market Cap

        Understanding the different Mutual Fund categorizations by Market Cap

        Investing in Lumpsum or SIP

        Investing in Lumpsum or SIP

        Performance be a by-product

        Performance be a by-product

        What is Real Investing and why it requires grit and stubbornness?

        What is Real Investing and why it requires grit and stubbornness?

        5 Reason to Boost your SIP

        5 Reason to Boost your SIP

        Understanding the types of Mutual Funds

        Understanding the types of Mutual Funds

        Why SWP is wise decision than investing in Fixed Deposits?

        Why SWP is wise decision than investing in Fixed Deposits?

        Why you should diversify your portfolio?

        Why you should diversify your portfolio?

        What is NAV

        What is NAV

        Trending Tags

        • Mutual Fund Basics
        • Financial Goals
        • Asset Allocation
        • Basics of Investing
        • SIP
      • Podcast
        Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 11: The Investor’s Playbook

        Ep. 11: The Investor’s Playbook

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 08: Value Migration

        Ep. 08: Value Migration

        Ep. 07: Wealth Creation Studies

        Ep. 07: Wealth Creation Studies

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Trending Tags

        • Basics of Equity
      • 5 Keys of Investing
        5 Key points to keep in mind for budding investors

        5 Key points to keep in mind for budding investors

        5 Key ways to handle market volatility

        5 Key ways to handle market volatility

        5 Key New Year resolutions for investors

        5 Key New Year resolutions for investors

        5 Key situations and errors to be avoided by investors

        5 Key situations and errors to be avoided by investors

        5 Key investing lessons from the Mahabharata

        5 Key investing lessons from the Mahabharata

        5 Key investment lessons we could learn from Holi

        5 Key investment lessons we could learn from Holi

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key mistakes investors should avoid while investing in ELSS

        5 Key mistakes investors should avoid while investing in ELSS

        Trending Tags

        • Basics of Investing
        • Basics of Equity
        • Financial Goals
        • Index Fund
        • Asset Allocation
        • SIP
        • Mutual Fund Basics
      • Wealth Creation Thoughts
      No Result
      View All Result
      No Result
      View All Result
      Home

      Why SWP is wise decision than investing in Fixed Deposits?
      0 / 5 Rating 0 Count 0

      Your page rank:

      Other Experts by Other Experts
      April 4, 2022
      in Videos
      0
      4
      SHARES
      372
      VIEWS

      Most people turn to Fixed Deposits with Banks as a means to get regular income, especially during retirement. Fixed Deposits have their own merits, due to their simple structure, predictable payout and convenience. In this episode, we wish to explore an alternate mechanism for regular income, called Systematic Withdrawal Plan (or SWP).

      We all are familiar with SIP, where a fixed amount is invested in a mutual fund at fixed interval. SWP is just opposite of SIP, where it allows you to withdraw a fixed amount from the mutual fund at regular intervals. Question is: Is it better to invest in a mutual fund and withdraw using SWP, compared to a Fixed Deposit which pays periodic interest? Yes, it is. Let us look at how?

      Compared to a fixed deposit, SWP brings all the benefits of investment in a mutual fund to your portfolio. This translates to a better tax treatment, higher capital appreciation, flexibility of investment options as per your risk profile and liquidity.

      Let us start with flexibility of investment with SWP.
      Compared to a FD with bank which is only a debt instrument, here in SWP you could choose from Equity mutual funds, Hybrid mutual funds or Long Term or Short Term Debt Mutual Funds as per your risk profile, and start an SWP on your investment. Hybrid funds are generally favoured for SWP, because of their ability to give better returns compared to Debt while keeping the market fluctuations lower than pure Equity mutual funds.

      SWP redemption is as per first in first out (FIFO) method wherein units first bought are assumed to be redeemed first. Thus, your tax incidence on SWP depends on FIFO method and holding period.

      With a Mutual fund and SWP, the capital grows despite the withdrawals, subject to market conditions, whereas the Principal remains same in Fixed Deposits. Hence a Mutual Fund with SWP could potentially provide an inflation beating return better than Fixed Deposit.

      In the long run a Mutual Fund with SWP will give a higher return, compared to a Fixed deposit where a 5 year+ FD might attract a lower interest rate.
      And finally, in a Mutual Fund with SWP, one can opt out of the scheme as per his will, subject to exit load (if applicable), but in Fixed Deposit a pre-mature closure would result into lowering the applicable interest rate.

      Now you know that a SWP could be a better option compared to a Fixed deposit to meet your regular income needs. We hope you have learnt something new today, as it is our constant endeavour to educate and make an ‘investor’ a ‘sound investor’! Happy Investing!

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Stay Connected

      Recommended Videos

      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      by Other Experts
      December 27, 2022
      0

      As you know, Market capitalization for a company, which is most commonly referred to as market cap, is equal to...

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      by Other Experts
      July 22, 2022
      0

      A question that keeps coming up in your mind as an Investor is – “Whether I should invest a lumpsum...

      Performance be a by-product

      Performance be a by-product

      by Other Experts
      November 28, 2022
      0

      Many investors mistakenly base the success of their portfolios on returns alone. Few investors consider the risk involved in achieving...

      Popular Posts

      • Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        1351 shares
        Share 540 Tweet 338
      • Ep. 12: Wisdom Tree (Part 1)

        1322 shares
        Share 529 Tweet 331
      • Ep. 11: The Investor’s Playbook

        1298 shares
        Share 519 Tweet 325
      • Ep. 10: Evolution of Indian FMCG Sector

        1280 shares
        Share 512 Tweet 320
      • Ep. 09: Evolution of Indian Pharmaceutical Sector

        1174 shares
        Share 470 Tweet 294

      EquitySahiHai is an investor education initiative by Motilal Oswal Asset Management to educate and empower of yourself by through a series of videos that bring to you insights from stock market & mutual fund experts.

      Follow Us

      Browse by Category

      • 5 Keys of Investing
      • Asset Allocation
      • Basics of Equity
      • Basics of Investing
      • Blog
      • Financial Goals
      • Index Fund
      • International Investing
      • Investing Behaviour
      • Mutual Fund Basics
      • Podcast
      • SIP
      • STP
      • SWP
      • Videos
      • Wealth Creation

      Latest Posts

      Association of Mutual Funds in India: MF Association Role & Objectives

      Association of Mutual Funds in India: MF Association Role & Objectives

      March 23, 2023
      What are Auto Sector funds? Are they a good investment option?

      What are Auto Sector funds? Are they a good investment option?

      March 23, 2023

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      • MUTUAL FUND
      • INDEX FUND
      • ETF
      • PMS
      • AIF
      • PARTNERS
      • INVESTOR EDUCATION
      • INTERNATIONAL BUSINESS
      • Home
      • Videos
      • Podcast
      • 5 Keys of Investing
      • Wealth Creation Thoughts

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      Welcome Back!

      Login to your account below

      Forgotten Password?

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?