Can SIP/Mutul fund give Regular income without Tax?

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Can SIP/Mutul fund give you Regular income?

✍Answer is 'Yes'

If you are an employee and wants regular monthly income  without tax after retirement or a retired person  and having money idle(or FD) in bank or a business man with extra money parked in bank, they all can do SWP in SIP/Mutul fund to get regular income.

What is SWP?

Here you can set how much monthly amount to be withdrawn into your bank account automatically on a fixed  date.

Features of SWP

Partial withdrawal: You can  withdraw Only required amount and remaining amount stay invested  on which power of compounding works for getting more return compare to FD and beating the inflation.

example

Suppose you put 10 lakh in a best selected mutul fund and set to withdraw Rs.10,000 each month then even after one year you withdraw 1.20 lakh.so remaining 8.80 lakh stay invested on which power of compounding works and if grow @15% then your value will be 8.80+1.32 lakh=9.12 lakh.

Tax benefit:Only capital gain is taxed@12.5%(for >1 yr holding) irrespective of tax bracket in which you are  and Rs1.25 lakh capital gain is also tax exempted.

Where as in FD tax is calculated on whole interest earned as per personal tax slab.

example

If you do FD of 10 Lakh for one year @ 7% , then you will get Rs.70,000 interest after one year.

Here total interest Rs.70,000 is taxed as per your tax slab may be 10%,20 or 30%.if tax slab is 30% then Rs21000 will be taxed for Rs70,000 earned.

Incase of SWP this capital gainRs70,000 will be fully tax free.

Flexibility: You can modify the withdrawal amount any time based on your need.

No need to time the market:

No body knows when the market is at high.So SWP offer a more disciplined approach , allowing to you to withdraw a fixed amount at regular interval without disrupring long-term compounding.

Conclusion:

Why choose SWP (Systemetic withdrawal plan) ?

✍Benefits

1. Regular monthly income
2. Partial withdrawal
3. Full investment not broken
4. Tax only on capital gain(1.25 lakh exempted)
5. Better return than FD & MIS
6. No lock -In period
7. Full withdrawal any time
8. Can be stoped any time
9. Ideal for Retired people
10. Best for having more money kept idle in Bank.

  ✍Free SIP guide for beginners.

✍To know how and in which fund to do SWP, whatsApp financial advisor.

👉 Is SWP better than FD, comment  'Yes, or 'No' on whatsApp

For query:  WhatsApp  us

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👉Consult distributor/Advisor before investing.