What is SWP (Systematic Withdrawal Plan)?
SWP is a fantastic mechanism for investors who want regular cash-flows from their mutual fund investments. SWP provides you with a mechanism of generating fixed cash-flows from your investment, at regular frequency (at a fixed date even) to meet your regular expenses. All withdrawals made one year from the date of investment in equity mutual funds are exempt from capital gains taxation. After you make your regular withdrawals, the balance investment continues to earn returns and compound to create wealth for you.
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