Systematic Withdrawal Plan - is the best alternative for investors who need regular income.
SWP is available in two options:
Fixed Withdrawal: Where you specify amounts you wish to withdraw from your investment on a monthly/quarterly basis.
Appreciation Withdrawal: Where you can withdraw 90% of your appreciated amount on a monthly/quarterly basis.
Post-dated warrants sent to investors are dated 1st of every month.
Ideal for
Investors who need regular money out of their investment.
Benefits
Withdrawals (i.e. redemption) attract no whereas dividends would be subject to
You will be liable for long term capital gains tax @ 10% (plus surcharge) without indexation or 20% (plus surcharge) with indexation in case you withdraw after a year.
In case of the Appreciation Withdrawal option, your capital continues to grow while the appreciated income is withdrawn.
No load (no transaction fee) on SWP withdrawal.
Investment Plan
Details
SWP - Fixed Withdrawal
SWP - Appreciation Withdrawal
Available Schemes
Birla Bond Plus, Birla Dynamic Bond Fund, Birla Gilt Plus, Birla Income Plus, Birla MIP *, Birla MIP II *, Birla Sun Life Monthly Income *, Birla Sun Life Government Securities Fund, Birla Sun Life Income Fund.
Birla Bond Plus, Birla Dynamic Bond Fund, Birla Gilt Plus, Birla Income Plus, Birla MIP *, Birla MIP II *, Birla Sun Life Monthly Income *, Birla Sun Life Government Securities Fund, Birla Sun Life Income Fund.
Objective
Allow investors of growth plan to withdraw fixed amount at regular interval.
Allow investors of growth plan to withdraw appreciation amount at regular interval.
Withdrawal option
Fixed Amount
Appreciation Amount
Withdrawal amount
Min Rs. 500 & in multiples Rs. 1
90% of Appreciation Amount in that month/ quarter, subject to a minimum payout of Rs. 500. If the so derived withdrawal amount is < Rs. 500, no SWP for that month, to be added to next month's/Quarter's SWP amount.
