Is systematic withdrawal plan a good option to redeem money from mutual funds?
Have a query about SWP? Looking out for the details of how to use SWP for redeeming money from mutual funds? Here, on this page you can check out advice from experts and get answers to your query.
I know that Systematic Withdrawal Plan (SWP) is a method, which works quite opposite to Systematic Investment Plan (SIP). In SWP, the money that we have already invested in mutual funds, will be withdrawn on regular basis so that we can use it for our regular expenses.
Many experts suggest us to invest our money in mutual funds through SIP way in order to compensate the market vagaries. But the same experts also suggest to withdraw our money through systematic withdrawal plan. Everyone will try to maximise his profits. If we follow the SWP way of redemption, is there any guarantee that it won't redeem our money when the markets are low? So, whatever advantage we have gained through SIP, will be lost through SWP.
Then what are the benefits of SWP? Is systematic withdrawal plan good option to redeem money from mutual funds?