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.
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.
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:
To benefit from this fund, the minimum investment is ₹5,000,000. For better planning, consider SIPs (Systematic Investment Plans) starting from ₹1.
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.
This fund allocates its holdings as follows:
Using an SWP calculator is crucial to understanding how your investments can perform over time. For example:
Investment of ₹1 lakh:
Long-term Investment (up to 25 years):
Alternative Investment (₹10 lakh):
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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SBI SWP, Systematic Withdrawal Plan, Monthly Income, SBI Equity Hybrid Fund, AUM, Expense Ratio, Capital Gains Tax, Fund Managers, SWP Calculator, Investment Strategy
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.
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