Is it possible to get Rs. 50,000 through SWP by investing Rs. 500,000

It is not possible to get Rs. 50,000 without losing any capital, as monthly SWP withdrawal against an investment of Rs. 50,00,000.

Please note that investment in any category of mutual funds do not assure capital protection. Therefore, fixed monthly withdrawal with protection of principal is not possible at all.

Also, before you opt for SWP, you should know your risk taking appetite. If your risk taking appetite is low then taking SWP from debt funds makes sense. And if your risk taking ability is moderately high to high then taking SWP from balance fund makes sense.

Also, if you are taking SWP from debt funds then you should not withdraw more than 7-8% annually and in case of balanced or large cap funds not more than 9-10% annually.

We have covered the above topics in our blogs earlier which you must go through to understand the concept and taxation of SWP better. Please read these -

https://www.advisorkhoj.com/company/Principal-Mutual-Fund...

https://www.advisorkhoj.com/company/Principal-Mutual-Fund... and

https://www.advisorkhoj.com/articles/Mutual-Funds...

We have also covered some fund performance based on SWP from balanced funds which you might find useful -

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/articles/Mutual-Funds... and

https://www.advisorkhoj.com/articles/Mutual-Funds...

Hope the above helps you in understanding the SWP concept better. Please let us know how else we can help you.

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