SWP: If you want to get financial freedom, then Systematic Withdrawal Plan (SWP) of Mutual Fund can prove to be a great option. Through this plan, you can earn at least Rs 1 lakh every month on your investment. However, before starting SWP, it is necessary to prepare a big fund. To create this fund, you can invest in equity mutual funds, as these schemes are known to give better returns in the long term. In this way, first make the right investment. Then get passive income month after month through SWP, so that you can gradually move towards financial freedom.
This way you will earn 1 lakh
There have been many mutual fund schemes that have given a profit of 12 to 15% every year in the long run. If a person invests Rs 10 lakh for 21 years and gets a return of 12% every year, then this amount can grow to about Rs 1 crore 8 lakh. In this way, by investing Rs 10 lakh at once, you can earn up to Rs 1 lakh every month from home after retirement.
What is Systematic Withdrawal Plan
Systematic withdrawal plan is a method through which you can gradually withdraw the money invested in your mutual fund. In this, you tell your mutual fund how much amount is to be transferred to your bank account every month and on which date. A fixed amount is withdrawn from the fund, but the rest of the money remains invested there and keeps getting interest or return on it. With this, you continue to get the benefit of compounding. This method is beneficial for those who have retired or are taking a break from their job.
Lumpsum Calculator
1 Time Investment: Rs 10,00,000
Investment period: 21 years
Estimated return on 21 year lump sum: 12% p.a.
Value of investment after 21 years: Rs 1,08,00,000.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.