SIP VS SWP
SIP VS SWP
SIP
(Systematic Investment Plan) and SWP (Systematic Withdrawal Plan) are two
opposite ways of handling your mutual fund investments. In SIP, you
invest a fixed amount regularly (monthly or weekly) into a mutual fund scheme.
This helps in building wealth gradually by averaging out the cost of investment
over time – perfect for salaried individuals or beginners who want to save and
grow money for long-term goals. On the other hand, SWP is for those who
already have a lump sum invested and want regular income from it. It allows you
to withdraw a fixed amount periodically like a salary while the rest of the money continues to stay
invested. SIP is ideal during the wealth creation phase, while SWP is useful
during retirement or when you need steady cash flow. Both are smart tools one for growing wealth, the other for enjoying
it.
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