BAJAJ BROKING
Planning to withdraw your mutual fund investments? Before you do that, use the Bajaj Broking SWP calculator to plan your withdrawals better, so your corpus continues to grow even as you redeem a part of your portfolio.
Total Investment
₹ 0
Total Withdrawal
₹ 0
Final Value
₹ 0
A Systematic Withdrawal Plan (SWP) is an investment redemption strategy through which you can withdraw a fixed sum from your mutual fund corpus at frequent intervals. Throughout the tenure of the SWP, depending on how the assets in your mutual fund portfolio perform, you may continue to earn returns on the remaining corpus.
For example, say you have a mutual fund portfolio worth Rs. 10 lakhs, with 10,000 units whose NAV is Rs. 100 each. You decide to set up a monthly Systematic Withdrawal Plan and withdraw Rs. 10,000 regularly in instalments. Now, if the NAV of the scheme during the first month is Rs. 120, you will be able to redeem 83 units at this NAV and withdraw Rs. 10,000 (i.e. Rs. 120 x 83 units). This leaves you with 9,917 units in your mutual fund portfolio. Then, during the next month, say the NAV increases to Rs. 150. You can then redeem 67 units and withdraw Rs. 10,000 (Rs. 150 x 67 units). In this manner, you can systematically withdraw your mutual fund investments.
A SWP calculator is a free online tool that helps you evaluate how your mutual fund corpus will be affected once you implement your Systematic Withdrawal Plan. It calculates the future value of your mutual fund portfolio based on various parameters like the current investment value, the monthly withdrawal amount, the expected annual returns from the mutual fund scheme and the tenure of the SWP in years.
To use the Bajaj Broking SWP calculator online, here is what you need to do.
The SWP calculator then displays key information about the outcome of your Systematic Withdrawal Plan, such as the total current investment, the total withdrawals you will make over the SWP tenure and the final value of the portfolio at the end of this period.
The best SWP calculators offer several benefits to investors with long-term goals. These advantages include:
The SWP calculator essentially computes the final value of a mutual fund portfolio after the systematic withdrawals have occurred over a given period. So, here is what the SWP calculator formula looks like:
A = PMT x [(1 + r/n)nt — 1] ÷ r/n
Where:
A SWP calculator can help you plan your mutual fund withdrawals strategically, so you can meet your financial needs without eroding your corpus earlier than expected.
You can find a SWP calculator online on various financial planning websites. Bajaj Broking also offers this tool online free of charge, so you can use it to create your mutual fund withdrawal strategy.
A SWP or Systematic Withdrawal Plan is a redemption strategy that involves systematically withdrawing from your mutual fund corpus. Any mutual fund investor can opt for a SWP. However, it is advisable to avoid withdrawing your mutual fund investments till you retire.
A SWP is a mutual fund redemption strategy. The particulars of the strategy, such as the amount you wish to withdraw and the frequency of withdrawal, depend on your financial situation and goals.
If you plan your withdrawals strategically, you can reduce your capital gains tax or even enjoy exemptions on the long-term capital gains from equity funds up to Rs. 1 lakh.
No Result Found
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
TRENDING CALCULATORS AND STOCKS ON BAJAJ BROKING
