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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

SIP vs STP vs SWP

In mutual funds, investors often hear three important terms - SIP, STP and SWP. These may sound technical, but they are actually simple and powerful facilities provided by mutual funds. They help investors invest, transfer and withdraw money in a disciplined and automated manner. Systematic Investment Plan This is the most commonly known concept. In an SIP, a fixed amount is automatically debited from your bank account on a fixed date and invested into selected mutual fund schemes. For...

SIP vs STP vs SWP

In mutual funds, investors often hear three important terms - SIP, STP and SWP. These may sound technical, but they are actually simple and powerful facilities provided by mutual funds. They help investors invest, transfer and withdraw money in a disciplined and automated manner. Systematic Investment Plan This is the most commonly known concept. In an SIP, a fixed amount is automatically debited from your bank account on a fixed date and invested into selected mutual fund schemes. For example, if a 30-year-old investor starts investing INR 10,000 per month for retirement and continues till the age of 55, the investment period is 25 years. Assuming a long-term return of around 12% per annum, this monthly investment can grow to approximately INR 1.70 crores. Please note, INR 10,000 is only a small amount used for illustration. Your SIP amount should be sufficient for your goals. Ideally, investors should try to invest at least 30% of their in-hand monthly income. The biggest benefit of SIP is discipline. You do not have to remember to invest every month. The process is automated. SIP also helps you invest through market ups and downs, reducing the stress of timing the market. That is why SIP is also popularly called Sapna-In-Progress. Systematic Transfer Plan In SIP, money moves from your bank account to a mutual fund. In STP, money moves from one mutual fund scheme to another. This is especially useful when you have a lumpsum amount but do not want to invest it into equity funds in one shot. For example, an investor has INR 20 lakhs to invest for the long term. He may worry about market volatility if the entire amount is invested at one go. In such a case, the money can first be parked in a debt mutual fund, and then gradually transferred to an equity mutual fund through STP. For example, INR 40,000 can be transferred every week over around 50 weeks. STP is flexible in terms of duration, frequency, amount and choice of schemes. STP gives comfort, automation and gradual participation in equity markets. Systematic Withdrawal Plan This is the exact reverse of SIP. In SIP, money goes from your bank account to a mutual fund. In SWP, money comes from your mutual fund to your bank account at regular intervals. SWP can be very useful after retirement. Suppose an investor has built a corpus of around INR 10 crores by the age of 55. He can set up an SWP to receive, say, INR 5 lakhs per month for his regular expenses. If the corpus is invested wisely with proper asset allocation, the investor can receive regular income and still allow the balance corpus to grow over time. To understand the power of this, consider an actual scheme’s past performance. A corpus of INR 10 crores would have grown to around INR 30 crores over 15 years, even after the investor withdrew INR 5 lakhs every month. In simple words, SIP helps you invest regularly, STP helps you transfer wisely, and SWP helps you withdraw systematically. Used properly, these three tools can make wealth creation and retirement planning more disciplined, automated and peaceful. (The author is Chartered Accountant and CFA (USA). Financial advisor. Views personal. He could be reached on 9833133605)

13 including 4 children killed

  • PTI
  • May 7, 2025
  • 3 min read
A civilian injured in Pakistani shelling receives treatment at a hospital at Uri in Baramulla district of J&K on Wednesday. Pic: PTI
A civilian injured in Pakistani shelling receives treatment at a hospital at Uri in Baramulla district of J&K on Wednesday. Pic: PTI

Jammu/Srinagar: At least 13 people, including four children and a soldier, were killed and 57 injured as the Pakistan Army carried out one of the most intense artillery and mortar shelling in years targeting forward villages along the LoC in Jammu and Kashmir after the Indian missile strikes against terror infrastructure in the neighbouring country and PoK, officials said on Wednesday.


Hundreds of residents were forced to take refuge in underground bunkers or shift to safer places as the indiscriminate shelling by Pakistan destroyed houses, vehicles and various buildings, including a Gurdwara, and created panic among the border residents in the worst-hit Poonch district and Rajouri in Jammu region and Baramulla and Kupwara in north Kashmir.


The officials said the Indian Army is responding to the shelling in a befitting manner, resulting in many casualties on the enemy side after several of their posts engaged in firing were destroyed.


This is the first time that such an intense shelling has been witnessed after the ceasefire agreement was renewed between the two countries on February 25, 2021.


Poonch district accounted for all 13 deaths, the officials said, adding 42 people were also injured and the condition of two of them was stated to be serious.


The shelling was reported from all along the LoC in Poonch, including Balakote, Mendhar, Mankote, Krishna Ghati, Gulpur, Kerni and even Poonch district headquarters, resulting in damage to dozens of houses and vehicles, they said.


The shelling from across the border was intense till noon and later continued intermittently, mostly restricting to the Poonch sector for the next few hours. Locals faced a tough time evacuating the victims to hospital due to the heavy shelling, which also hit Poonch bus stand, damaging several buses, the officials said.


Three Sikh men lost their lives when an artillery shell hit a Gurdwara and adjoining houses in Poonch town, they said. Several parties from Punjab condemned the incident.


Ten persons, including five children, were also injured in cross-border shelling in Uri sector of Baramulla district, while three others were injured in Rajouri district, the officials said, adding several houses also caught fire due to shelling in Karnah sector of Kupwara district.


The officials identified the deceased as Balvinder Kour alias “Ruby” (33), Mohd Zain Khan (10), his elder sister Zoya Khan (12), Mohd Akram (40), Amrik Singh (55), Mohd Iqbal (45), Ranjeet Singh (48), Shakeela Bi (40), Amarjeet Singh (47), Maryam Khatoon (7), Vihaan Bhargav (13) and Mohd Rafi (40) and a Lance naik of Army.


Consecutive firing

This was the 13th consecutive night of unprovoked firing along the borders in Jammu and Kashmir, amid heightened tensions following the Pahalgam attack.


Earlier, a defence spokesman said during the intervening night of May 6 and 7, the Pakistan Army resorted to arbitrary firing, including artillery shelling, from posts across the LoC and International Border opposite Jammu and Kashmir.


He said the Indian Army is responding in a “proportionate manner”.


Army sources said Indian troops caused many casualties to the enemy forces after destroying several of their posts in the retaliatory action.


Authorities had shut all educational institutions in the five border districts of the Jammu region on Wednesday.


The ceasefire violations have been very rare after India and Pakistan renewed the ceasefire agreement on February 25, 2021.


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