An SWP is a tool that allows one to regularly withdraw a predetermined amount of money from their mutual fund investments over a specific period. It is the other side of the investment equation—the reverse of an SIP—that facilitates a phased exit from investments. Lets consider the multiple benefits of pursuing an SWP.
With a little discipline and the power of compounding, you can easily double or triple your savings in the long run. While simple interest is calculated on the principal amount or the money you have invested, compound interest is calculated on the principal amount and the interest that you earn on that. Lets find out how compounding can help you become wealthier.
The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.
A mutual fund is a particular kind of investment vehicle where the fund is run by a professional investment manager who gathers money from investors and allocates it towards stocks, bonds, or other securities to generate capital appreciation to create wealth.
SIP refers to Systematic Investment Plan, which is a form of investment strategy that enables investors to invest a specified amount of money in a mutual fund scheme at regular intervals, typically on a monthly basis.