Smart Tax Saving via Systematic Withdrawal Plan

Yielding no less return on investment than a fixed deposit, SWP Redemption can reap amazing tax saving

- JIGAR MUKESH PATEL

Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows investors to withdraw a fixed amount of money at regular intervals (either monthly, quarterly, etc.) through periodic redemption of units as required from their overall investment. This facilitates pre-planned cash flow requirement sourced by way of withdrawals. SWP is a simple, yet practical way of generating liquidity for meeting periodic financial requirements, simultaneously assuring that the balance of the investment keeps growing in a healthy manner.