How SWP from Equity Hybrid Funds can be useful to get regular return
You can choose the periodic intervals for withdrawal as per your requirements.

You invest lump sum money in mutual funds and look to set up an SWP.
Nowadays, many mutual fund advisors and consultants recommend a Systematic Withdrawal Plan or SWP to investors, especially for retirees. The reason is that it is a great way to draw regular returns through their mutual fund investments. Even if it is a good way to generate income regularly, many people confuse this mutual fund investment instrument. Systematic Withdrawal Plan is a facility from mutual funds that allow investors to withdraw a fixed amount at regular periodic intervals from your investment. You can choose the periodic intervals for withdrawal as per your requirements, like monthly, quarterly, or yearly. Read this post to check how SWP from Equity Hybrid Funds helps investors to generate regular returns.
What is SWP
Every mutual fund investor knows what systematic investment plan (SIP) is, but does not have any idea about SWP. In fact, it is just the opposite of SIP. In SIP, an investor invests a fixed amount on regular intervals in mutual funds. At the same time, you can withdraw the invested amount at regular intervals, say, monthly, quarterly, and half-yearly or annually in SWP. In this scheme, investors can redeem their mutual fund lump sum investment at regular intervals.
How it generate regular returns
Mutual fund Equity hybrid fund SWP is a suitable option for those who wish to generate a regular income. It can be an alternative to dividend plans. As an investor, you can use this facility to meet your different types of expenditures like home loan EMI, rental payments, or other monthly expenses. You will get a regular cash flow like dividends by opting for the systematic withdrawal plan.
How to opt for SWP
If you invest lump sum money in mutual funds and look to set up an SWP, then you need to fill-up the form for that. After filling it, you need to submit the form at the concerned fund house (AMC office). In this form, you need to specify the duration of the SWP and the amount you need at regular intervals. If you have a registered bank account with the mutual fund, your amount for SWP will be remitted into your bank account directly through the Electronic Clearing Service (ECS).
Fixed periodic withdrawal and Appreciation withdrawal are the two options available for a Systematic Withdrawal Plan. In fixed periodic withdrawal, you can withdraw a fixed amount at regular intervals. Your fund house sells units equivalent to the amount in the SWP form and transfers the sum to your account. Your corpus may lessen in this type of withdrawal. But in the appreciation withdrawal, you make the choice to withdraw capital appreciation on your fund at a fixed frequency. The advantage of this plan is that only the capital appreciation gets transferred into your account as SWP.
It is wise to approach a mutual fund advisor to get an idea about how much you need to withdraw while setting up an SWP in a mutual fund scheme. He or she would advise you to take a little lower amount for withdrawal if you do not plan to touch your capital. Such an approach will help investors not losing the value of their corpus over a long period. The primary advantage of investing in SWP is that it helps you to get a regular cash flow just like dividends. An SWP from equity hybrid funds helps investors like you to customize the cash flow based on your needs. It can be a suitable option for those who look for regular income for their personal needs.
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