Dividend vs SWP: How do you like your MF payout served?
2 years, 9 months ago

Dividend vs SWP: How do you like your MF payout served?

Live Mint  

The purpose of investing in a mutual fund scheme, on the other hand, is determined by the investor's financial objectives. If you want a consistent return on your MF investment, whether it's a short-term or long-term investment, you have two options: the dividend distribution option or the systematic withdrawal plan option. Systematic Withdrawal Plan Investors can redeem their mutual fund assets using SWP. Taxability: As SWP is a sort of withdrawal, investors are subject to the appropriate capital gains tax, which varies based on the holding duration and mutual fund type. In case of dividends,the fund house pays the relevant rates of dividend distribution tax, and the dividends received by the investors are already taxed.

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History of this topic

An annual mutual fund ritual
2 months ago

An annual mutual fund ritual

The Hindu  

Previously, in this column, we discussed the cost of switching from a regular plan to a direct plan for your mutual fund investments. If you choose the IDCW option, you must find avenues to reinvest the cash flows received from the MF. Therefore, if cash flows from IDCW continue to be taxed at your marginal tax rate, the growth option …

Unlocking the Power of Systematic Withdrawal Plans: A Comprehensive Guide to SWP
5 months, 1 week ago

Unlocking the Power of Systematic Withdrawal Plans: A Comprehensive Guide to SWP

News 18  

This article provides an overview of the Systematic Withdrawal Plan (SWP) and how it works. SWP is a facility offered by mutual funds that allows investors to withdraw a fixed amount periodically from their mutual fund investments. It is suitable for retirees or individuals who require consistent cash flow without having to sell units manually. The key benefits of SWP …

SIP For Growth, SWP For Income; Which One Is Right For You? Know The Difference Here
7 months, 3 weeks ago

SIP For Growth, SWP For Income; Which One Is Right For You? Know The Difference Here

News 18  

SIP and SWP are two popular investment strategies offered by mutual fund houses. Systematic Investment Plan : Purpose: SIP is designed to help you invest money regularly in a mutual fund over a period of time. Systematic Withdrawal Plan : Purpose: SWP is designed to provide you with a regular cash flow from your mutual fund investment. Investor Profile: SIP …

Give a fillip to your systematic investment plans
8 years, 6 months ago

Give a fillip to your systematic investment plans

Live Mint  

Systematic investment plans have become the preferred way of investing in mutual funds. The reverse is also true, i.e., a poorly performing fund will raise eyebrows, even though the overall portfolio performance is good. As markets tend to rise over the longer term, investing through SIPs implies that you are buying at higher and higher prices, thus reducing your return …

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