SWP: Mutual Fund Scheme Offers Higher Returns Than FD & Guaranteed Monthly Pension

• Systematic Withdrawal Plan (SWP) in mutual funds provides a regular monthly income, similar to a pension.
• It allows investors to withdraw a fixed amount at regular intervals from their lump sum investment.
• SWP offers potentially higher returns (10-12%) compared to FDs (6-7%) over the long term.
• Tax benefits are available as tax is only levied on the capital gains portion, not the entire withdrawal.
• Ideal for retirees, those seeking higher returns than FDs, and long-term wealth growth.

Key Questions Answered

How can SWP offer better returns than FDs?

SWP can offer better returns than FDs because it allows investments to grow while providing regular income.

Is SWP suitable for all types of investors?

Systematic Withdrawal Plan (SWP) is primarily designed for investors seeking regular income, particularly retirees, and is not explicitly stated as suitable for all investor types.