Can you please suggest some good mutual fund schemes for systematic withdrawal plan (SWP)? What is the process for investing in such schemes? I have Sharekhan’s trading account, where I am able to buy mutual funds but I am not getting the SWP option.
—Soumen Banerjee
SWP is a method of redeeming money from your mutual fund investment in a systematic (periodic) manner, as opposed to getting it all at once. For example, if you have invested Rs1 lakh in a scheme, you can setup an SWP to withdraw Rs10,000 every month (on a given date) for 10 months.
On the last month, you can set it up so that all the money remaining (which may be more or less than Rs10,000) can be withdrawn.
