Multiple choice

A Systematic Withdrawal Plan (SWP) allows investors

  1. to invest a fixed amount at regular intervals

  2. to withdraw a fixed amount at regular intervals

  3. to save tax

  4. to get compound returns
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Systematic Withdrawal Plan (SWP) is designed to provide regular income to investors by allowing them to withdraw a fixed amount at predetermined intervals. This is essentially the reverse of Systematic Investment Plan (SIP), making it suitable for investors seeking regular cash flow from their investments.

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