SWP for Monthly Income | ₹20000 की मासिक आय घर बैठे हर महीने | SBI SWP Plan for Monthly Income 2024

Introduction

In today's financial landscape, many individuals are seeking ways to generate a steady monthly income with minimal investment effort. One such option is the Systematic Withdrawal Plan (SWP) offered by SBI Mutual Fund. This article will explore how you can achieve a monthly income of up to ₹20,000 by investing wisely, with a focus on the SBI Equity Hybrid Fund Direct Growth Plan.

Introduction to SWP

Have you seen various videos discussing different investment plans? This article aims to provide a structured approach on how to start with the SBI SWP, detailing how much you can expect in monthly income after a certain investment period.

If you currently have funds that you're not utilizing, such as retirement benefits or matured investments, consider investing in the SBI SWP. Keeping your money in a bank Fixed Deposit (FD) or savings account can lead to a loss of 7-8% in annual returns.

The SBI SWP allows you to invest a lump sum that not only yields monthly income but also ensures your principal amount grows over time. SBI is a trusted name in the mutual fund industry, being the number one Asset Management Company (AMC) in India.

Understanding SBI Equity Hybrid Fund

The fund in question is the SBI Equity Hybrid Fund Direct Growth Plan, which minimizes risk by investing in both equity and debt. Here's an overview of its past performance:

• 1-Year Return: 26.67%
• 2-Year Return: 17.99%
• 5-Year Return: 17.01%
• 10-Year Return: 13.9%
• Since Inception Return (since October 9, 1995): 15.6%

Fund Details

• Asset Under Management (AUM): ₹7,779.7 crore (as of September 10, 2022).
• Current NAV: ₹81.6.
• Expense Ratio: 0.73%.

To benefit from this fund, the minimum investment is ₹5,000,000. For better planning, consider SIPs (Systematic Investment Plans) starting from ₹1.

Tax Implications

• Short-Term Capital Gains Tax: 20%
• Long-Term Capital Gains Tax: 12.5% for amounts above ₹1 lakh (no tax on amounts up to ₹1 lakh).

Fund Management

The fund is managed by four experienced fund managers: Rama Iyer Srinivasan, Rajeev Radha Krishnan, Mansi Saje, and Pradeep Keshavan. Their expertise plays a vital role in managing your investments effectively.

Sector Allocation

This fund allocates its holdings as follows:

• Equity: 72.6%
• Debt: 21.4%
• Cash: 21.4%

Calculating Potential Returns with SWP

Using an SWP calculator is crucial to understanding how your investments can perform over time. For example:

1. Investment of ₹1 lakh:

   • After 5 years with a return of 15%: Total value = ₹20,113.57. Monthly withdrawal of ₹20,000 results in ₹1,00,000 total withdrawal, leaving a closure value of ₹96,100.

2. Long-term Investment (up to 25 years):

   • With a consistent focus on withdrawing strategically, you could withdraw a total of ₹80 lakh and still close with a final value of over ₹1 crore.

3. Alternative Investment (₹10 lakh):

   • Withdraw after 10 years gives a total value of ₹7,29,000 with a monthly income of ₹20,000.

Conclusion

This detailed overview of the SBI SWP plan illustrates that with careful planning and strategic investment, you can secure a significant monthly income. Whether through a ₹1 lakh investment or larger contributions, the options are versatile and cater to different financial needs.

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Keyword

SBI SWP, Systematic Withdrawal Plan, Monthly Income, SBI Equity Hybrid Fund, AUM, Expense Ratio, Capital Gains Tax, Fund Managers, SWP Calculator, Investment Strategy

FAQ

1. What is an SWP?
A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed sum regularly from their mutual fund investments.

2. What is the minimum investment required for SBI SWP?
The minimum investment in the SBI Equity Hybrid Fund for SWP is ₹5,000,000.

3. What is the average return of the SBI Equity Hybrid Fund?
The fund has historically returned an average of 15.6% since its inception.

4. How does SWP affect my principal investment?
Withdrawals will reduce your principal, but with strategic withdrawals, your investment can still grow over time.

5. What tax implications should I consider with SWP?
Short-term capital gains tax is 20%, while the long-term capital gains tax is 12.5% for gains above ₹1 lakh.