Calculate your mutual fund earnings and check in SWP calculator to redeem with Systematic Withdrawal Plan, Find the new conditions and how does SWP calculator works for a individual investor, and when you have to use the SWP scheme of your mutual fund investment…
SWP stands for Systematic Withdrawal Plan, and it is a feature form mutual funds which allows an Investor to get their invested amount withdrawn, and there are multiple schemes which collaborate to mutual funds funding and an investor is eligible to withdraw a predetermined amount from his/her account at particular interval.
This SWP will help investor to calculate the sum of amount they can withdraw funds without fully withdrawing the account, where mutual funds are in aim to provide a lump-sum amount to one who has been investing for a long period at the time of retirement. Through this process they have multiple features which allow one to withdraw and use the part of total Fund at desired time.
The SWP calculator will help investor to calculate the amount that can be taken from Mutual Funds and wisely provide a way to use this invested amount, and there come events as Marriage, Education, Personal Expense and more, which can be easily covered from your Mutual funds, and the best way is you withdraw a partial amount from mutual Fund without disturbing your yearlong plan of retirement return.
How does SWP Calculator Works
There are many calculators which investors get confused while preparing to withdraw the amount from Mutual Funds, SWP calculator is far different from Systematic Investment Plan and mostly vice-versa. After a limited period of completion of Mutual Fund Investment, investor can use SWP calculator to withdraw a sum of money at monthly or quarterly basic from Mutual Funds as per calculated amount.
Let us calculate a sum of money that can be withdrawn from mutual funds with using SWP calculator form below example.
- If a total of 10, 00,000 has been invested in mutual funds, which is called as Total Investment
- A requirement of 10,000 on monthly basic has come up till a period of total 36 months
- IF suppose the Net Asset Value of Scheme is Rs.10/- then a total of 1, 00,000 will be accumulated with your total investment
- If sum of 10,000 is to be withdrawn on monthly, 1,000 units will be sold from total investment at a rate of Rs 10/-
- Now the total investment in words of units will be 99,000
- If in 2nd month the Asset Rate has increased to Rs.20 than a withdrawal of 10,000 will only use your 500 units
- At the start of the 3rd month investor total income will be at 98,500 units which profits you of 500 units with increase in Net Asset Value.
Systematic Withdrawal Plan helps an investor to hold their total income at constant and a withdrawal of some units will not make it disturbed. Using SWP calculator will allow your total income to hold on and only a part withdrawn can be increased with increased rates.
SWP Plans for Investor
There are some for sure committed plans that need to opt while going to use SWP plans. Have a look at the plans which might let you describe the amount to withdraw in easy manner.
- Amount of Withdrawal is fixed
- Interval of withdraw can be opted by investor as monthly/ quarterly or annually
- Appreciation Withdrawal Option allows investors to withdraw only Appreciation amount at the same interval selected
This option must be selected by having a good planned view, as once opted this option will have a long procedure to set back. Amount to be withdrawn at regular intervals must be as planned meeting your regular expenses, which should not affect your total investment.
At the end of 36 months, investor must have a sum of more than half the amount in their mutual funds even after withdrawing at regular intervals. SWP calculator will allow you to plan in the best way to meet your expenditure and not disturbed mutual fund amount.
Systematic Withdrawal Plan (SWP) available Calculator
Hope you will be able to calculate the withdrawal amount with SWP example suggested above, If you still face some difficulties then it would be better to visit the official website of Bank you have invested, and each bank has their varying Net Asset Rate combined with Interest Rate provide on mutual funds invested, and this would be far easier to plan better to withdraw any selected amount from total investment.
Nationalized Banks and Local Banks do have a varying rate of interest compared with each other, and the bank has got their links of SWP calculator, which will make investor easy to use. Investor can select the opted scheme through which they have invested a total amount in mutual funds.
The same scheme can be selected in SWP calculator page, which will desire the varying Net Asset Rate and give a constant amount to be withdrawn. Opting this option will again gain interest on sum of amount remaining at each internal of withdrawal. After completion of the period of SWP selected, Mutual fund amount will be locked and can be withdrawn at time of retirement.
Frequently Asked Questions
People are always looking forward to invest and it is one of the best choice one can make with excess money they have. And some of you might have these frequent questions regarding the SWP scheme which is why we have answered those below and you can take a look at them.
- Can Systematic withdrawal plan amount is fixed?
The amount to be withdrawal can be selected as per requirement, SWP calculator will suggest you’re a range of amount to be withdrawn without affection total Mutual Fund invested.
- When to Use SWP Scheme?
It is suggested to use this SWP plans better after retirement, as the individual will need a regular monthly income. At most emergency the SWP calculator can be chosen to select the interval and amount.
- Is SWP a Scam?
No, the SWP scheme from different banking sectors is not a scam and people get confused between different false mutual fund schemes and the right ones. So, just to clarify this scheme is a centralised scheme running all across India across various bank which is enough to provide you assurance that this is not a false scheme.