Hope you are doing well. I would like to know about systematic withdrawal Plan. How do they work, are they different from funds providing monthly dividend, what are the options available for SWP and impact of LTCG on them.
Regards, Mayank Duggal
SWP is nothing but withdrawing or liquidating from your invested amount in a systematic manner. Each such SWP is subject to the exit load, taxation and available units. Dividend payout is something when AMCs declare when they have dividend distributable surplus. Hence, dividend distribution may not be fixed. However, SWP is fixed as per your requirement (subject to exit load, taxation and available units).