If you wish to become rich quickly then do SWP along with SIP, know how much your money will increase?

SIP or SWP Which Is Better Option: In today’s era, many people invest in different places. So that he can earn more money. Many people nowadays invest money in SIP. If you aspire to become rich quickly. So just making SIP investment is not enough. SIP i.e. Systematic Investment Plan increases money in the long term. But if you withdraw some money from time to time and reinvest it properly.

So money can grow faster. For this, SWP i.e. Systematic Withdrawal Plan can be used. This method allows you to take advantage of investment returns as well as provide liquidity. By combining SIP and SWP, you can give both growth and returns to your money in a smart way. Let us tell you complete information about this.

How does money grow with SIP?

In SIP you invest a fixed amount every month or annually. This reduces the impact of market fluctuations and provides the benefit of compounding. Suppose you invest Rs 10,000 every month in an equity mutual fund with 12% returns.

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So in 20 years your investment can reach around Rs 80 lakh. By making regular investments in SIP, you can accumulate a huge amount in the long term. Along with this, there are also tax saving options in SIP. Like ELSS funds, which provide tax relief along with investment.

How will SWP yield more profits?

Many people have knowledge about SIP. But many people do not know about SWP. SWP means Systematic Withdrawal Plan. Withdraw small amounts from your investments from time to time. Its advantage is that your money does not remain locked and you can use it whenever needed. Suppose you have deposited a good amount through SIP.

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So every year you can withdraw a little part of it and put it in a safe debt fund. With this, your money will keep increasing and some part will also remain safe. The specialty of SWP is that it gives you both regular income and growth. This means that there will be no shortage of money and your investment will continue to grow.

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