SWPs : Great Value for a Tax Free Retirement

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Mutual fund’s Systematic Withdrawal Plan (SWP) offers great value in terms of tax free monthly expenses after retirement. Systematic withdrawal plan is the opposite of system investment plan (SIP). You can receive commuted pension at retirement and put the money in SWP. It is convenient to manage SWP through ATMs / internet as compared to NSC or post office deposits. A fixed amount will be withdrawn every month from your SWP and deposited to your account. The balance amount remains invested in Mutual Fund. You can customize the cash flow as per your needs.
How to build it: If you are young, start SIP in diversified equity fund and start building your retirement corpus. This category has given the best return over the long term among all investments. Last ten years average of top ten diversified funds is between 20% to 25% p.a. In case you want to take low risk, opt for balance funds. At the age of 25 years, if you start investing Rs 5000/- p m in a fund that grows as low as 12% a year, even then your corpus at 60 will be Rs 2,75,00,000/-. Start early and select the top performing mutual funds instead of new fancy names. The mutual fund management expenses are regulated by SEBI and maximum limits are already there i.e. 2.25%. These expenses are already deducted from the NAV, and are hence very transparent. The next decade is projected for India’s best growth and wealth will be created. Don’t miss it. All this is 100% tax free!!