• 12 May 2023

How does Systematic Withdrawal Plans add value? | SWP

One of the key questions in the minds of mutual fund investors was how-to take-out money regularly since dividends were taxed at the peak rate? The answer lay in systematic withdrawal plans or SWPs for short. In a SWP, the withdrawal was part income and part capital, so the capital gains were taxed at a lower rate. This made SWPs more tax efficient.

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