NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
In a mutual fund scheme, the Systematic Withdrawal Plan (SWP) facility allows an investor to:
A Systematic Withdrawal Plan lets an investor redeem a fixed amount or fixed number of units from a scheme at regular intervals. Each withdrawal is a redemption at prevailing NAV, and the income is not guaranteed by the AMC.
- AInvest a fixed amount at regular intervals
- BRedeem a fixed amount or number of units at regular intervalsCorrect
- CSwitch automatically from debt to equity schemes only
- DReceive guaranteed monthly income from the AMC
Explanation
An SWP lets an investor withdraw a specified amount or units periodically from their holdings. Regular investment describes an SIP. Income is not guaranteed and each withdrawal is a redemption at the applicable NAV.
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