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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)

Col Qureshi's home becomes symbol of patriotism

  • PTI
  • May 8, 2025
  • 2 min read

Belagaum (Karnataka): The house of Mohammed Ghaus Sab Bagewadi in the sleepy village of Konnur in Belagaum district has transformed into a centre of national pride, drawing visitors and well-wishers, after his daughter-in-law Colonel Sofia Qureshi appeared on television to brief about 'Operation Sindoor' carried out by the Indian armed forces to avenge the Pahalgam terror attack.


Colonel Qureshi, who is married to Ghaus Sab Bagewadi's son Tajuddin Bagewadi, holds the distinction of being the first Indian woman officer to lead the military contingent at the ASEAN Plus Multinational Military Exercise ‘Force 18'.


Currently, Col Qureshi is posted in Jammu while her husband serves in Jhansi.


Addressing reporters, Ghaus Sab Bagewadi expressed immense pride and said, “I got to know yesterday afternoon. When I saw her (Sofia Qureshi) on the television my joy knew no bounds. People have been visiting our house from the morning to greet us.”


He mentioned speaking to his son on Thursday but could not get a chance to speak to his daughter-in-law.


Festive atmosphere

According to Bagewadi, a festive atmosphere prevailed in his house on Wednesday when Col Qureshi appeared on the television screens.


“There is Eid like celebration as all our relatives and friends have been visiting our house calling on us,” he said.


A huge crowd of people from various sections of the society gathered outside his residence and raised slogans such as ‘Hindustan Zindabad' and ‘Jai Hind'.


Referring to the Pahalgam terror attack, Bagewadi said, “The terrorists who shot dead innocent people after asking about their faith lack humanity. They are satans. Even Allah will not pardon them. They will pay for their deeds here only.”


About the neighbouring country, he said, “Pakistan is a demon. It never attacks from the front. It always targets from behind.”


Bagewadi emphasised the peaceful coexistence in his locality, which is home to various communities including Marathas.


“All my neighbours were proud to see that my children are serving in the Army. They were extremely happy. They invited me and honoured me. We are living here like a family,” he said.


He expressed hope that his children would continue to fight for the nation and never turn away from their duty.

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