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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)

Breeding ground for Fidayeen, links to Hamas

  • PTI
  • May 8, 2025
  • 3 min read

By Sumir Kaul

New Delhi: The banned Jaish-e-Mohammed's terror group's two 'Markaz' (centres) – its Bahawalpur headquarters and Narowal in Pakistan's Punjab – functioned as a breeding ground for suicide attackers, had links with Palestine's Hamas and served as a facility for hoarding smuggled NATO arms from Afghanistan, officials said here on Thursday.


Both these centres located on the opposite ends of Pakistan's Punjab province were among the nine targets hit by missiles launched by the Indian Air Force (IAF) in the early hours of Wednesday, in a strong retaliation to the Pahalgam terror attack on April 22, in which 25 tourists and a local guide were gunned down by terrorists.


According to the officials, the Bahawalpur centre of JeM, spread over 15 acres, is run by de-facto chief Abdul Rauf Asgar and the area has residential houses of JeM founder Masood Azhar and other family members.


Masood Azhar acknowledged after the IAF strikes codenamed 'Operation Sindoor' that 10 members of his family and four close associates were killed in India's missile attack on the outfit's headquarters in Bahawalpur.


A statement attributed to Azhar said those killed in the attack on Jamia Masjid Subhan Allah in Bahawalpur included the JeM chief's elder sister and her husband, a nephew and his wife, another niece, and five children from his extended family.


The Bahawalpur centre is notorious for hoarding arms and ammunition left behind by the NATO forces in Afghanistan, the officials said.


Often frequented

They said Bahawalpur is often frequented by JeM commanders who were fighting in Afghanistan, and that Asgar purchases as well as smuggles consignments of weaponry, including M4 series rifles, through a network of criminals based in Khyber Pakhtunkhwa, which was earlier known as North West Frontier Province (NWFP).


Besides the M4 series, the arms and ammunition included sniper rifles, armour-piercing bullets, Night Vision Devices (NVD), and rifles fitted with NVD.


About the centre in Narowal, the officials said the Markaz has been used for learning tactics from the Palestine Hamas group. The involvement of Hamas started in 2014 when one of the Jaish terrorists, Mohammed Adnan Ali, codenamed 'Doctor,' had imparted paraglider training to operatives of another group, Khalistan Tiger Force Ramandeep Singh alias Goldy, in Thailand.


The training was given by Jagtar Singh Tara who was deported to India and his associates Jaswinder Singh Jassa and Mohammad Umar Gondal.


The tactics for use of tunnels for infiltration and paragliding seem to be inspired by the modus operandi used by Hamas in the Middle East, the officials said, adding further that there are multiple inputs about regular interactions of JeM terrorists of JeM with Hamas leaders.


Hamas functionaries

Then, in February this year, senior Hamas functionaries addressed a rally on 'Kashmir Solidarity Day' in Rawalakot, PoK, that had top Lashkar-e-Taiba and Jaish-e-Mohammad cadres in attendance.


The rally was addressed by Hamas spokesperson Khalid Qaddoumi, a development Indian agencies saw as an attempt to link the jihadi campaign in Jammu and Kashmir to the Palestinian fight in Kashmir.


The Bahawalpur and Narowal facilities have produced terrorists responsible for multiple suicide attacks in India, including the 2016 strike at the Pathankot IAF base and the 2020 attack in Nagrota.


Among those indoctrinated for these "fidayeen" (suicide) attacks were close relatives of Masood Azhar, specifically his nephew Tallah Rasheed, as well as Usman, Umar, and Mohammed Ismail, also known as 'Lambu'. After being indoctrinated at these facilities, the individuals were reportedly sent to Balakote for arms training.


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