What is the systematic download plan (SWP)?

The Systematic Plan of the collection is a financial plan that allows shareholder to withdraw money from the existing portfolio of mutual funds at predetermined intervals. Money can be reinvested to another portfolio or pay for something else. This type of plan is often used to finance costs during retirement. However, it can also be used for other purposes.

With a systematic download plan, a fixed or variable amount is withdrawn at regular intervals. The selections can be carried out on a monthly, quarterly, half -year or annual schedule. The plan holder can choose intervals based on his obligations and needs.

These plans offer many benefits. For example, they allow account holders to access their money exactly when they need it. This makes it easier to hold their financial plans and meet their goals. From Making periodic selections, account holders are able to use average return values ​​that often exceed average selling prices. This wayBEM is able to provide higher unit prices than those that can be achieved by pulling everything out.

This type of plan also exists tax benefits. The selections are carried out from capital and as such long -term profits are paid at a lower tax rate. Many individuals use these plans as part of their tax planning strategies in an effort to make the most of this lower tax rate.

With a systematic selection plan, the investor's money will continue to grow until the investment carries out a rate higher than the download rate. For this reason, it is wise to diversify your investment. However, diversification has a sense of several types of investment except mutual funds.