Economic Strength Remedy: The Longer The Investment In Funds, The Higher The Return On SWP.
Key Sentence:
- A systematic investment plan means that investors invest a certain amount in a fund plan at the time of the rule.
- Similar to a recurring account in which we deposit a certain amount for the rule time.
When investing with financial goals, getting a fixed amount back after a particular year is essential. Investors should opt for an investment instrument like ICICI Prudential Freedom SIP to meet their financial goals.
Freedom SIP is a combination of regular SIP, Systematic Withdrawal Plan (SWP), and Portfolio Growth. SIP + SWP doubles the benefit after wealth creation as far as the required cost can be met. It can be started by doing monthly SIP by choosing a term of 8, 10, 12, or 15 years in open-ended equity, hybrid, or fund of funds scheme.
Once the SIP expires, the Systematic Withdrawal Plan option can be selected by transferring the joint unit to another scheme. The plan is switched in T + 15 days or on the second day of the non-business day (after the last day of SIP installment).
The target option should be a hybrid plan that can secure the amount raised. Once SWP is activated, the amount indicated by the investor in the form will be activated. According to the SIP term, the monthly income of SWP will be one to three times.
Source from Divyabhashkar