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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)

India stuck Islamabad retaliating Pak

  • PTI
  • May 8, 2025
  • 5 min read

Pakistani Air Force pilot captured in rajasthan

New Delhi: India struck Pakistan’s capital Islamabad as well as Lahore and Sialkot late on Thursday after thwarting multiple attacks on Indian cities, including Jammu, Jaisalmer and Pathankot.


A Pakistani Air Force pilot has reportedly been captured alive by Indian forces in Jaisalmer, Rajasthan on Thursday evening.


The capture took place amid heightened cross-border tensions following Pakistan’s attempt to strike 15 Indian cities with drones and missiles.


Sources within the Indian intelligence community confirmed the detention, stating that the pilot had ejected from an aircraft that was attempting to violate Indian airspace.


The reported capture comes hours after multiple Pakistani missiles were intercepted over Jammu, and defence sources accused the Pakistani military of resorting to “Hamas-style tactics” by launching cheap rockets across the Line of Control.


Jammu under attack

Indian air defence units successfully intercepted at least eight missiles fired by Pakistan towards the border areas of Jammu, including the strategically important Jammu Airport at Satwari on Thursday evening, defence sources said here.


Drawing a parallel to the tactics of the Palestinian Hamas terror group, the sources said all "cheap" rockets directed at the Jammu region were successfully intercepted and neutralised by Air Defence Units.


The missiles were aimed at key locations, including Satwari (Jammu Airport), Samba, RS Pura, and Arnia.


The sources said that the Pakistani Army has been operating in a manner akin to a terror organisation like Hamas and referred to a meeting between Pakistan's Inter-Services Intelligence (ISI) and Hamas operatives in Pakistan-Occupied Kashmir last month.


There were also potential sightings of hostile drones along India's western border, which were successfully thwarted.


A sudden power outage plunged Jammu city into darkness following two loud explosions, likely resulting from the interception of intruding drones. Immediately after, sirens echoed throughout the city, alerting residents to seek shelter.


The aerial objects had attempted to strike the strategic Jammu airport and its surrounding areas, which house Army, IAF, and paramilitary installations.


The sources confirmed the activation of air defence protocols, resulting in the downing of several Pakistani drones by the Indian Air Defence System.


Eyewitness accounts suggest that one of the drones was seen falling outside the airport premises.


Residents of Jammu city were seen perching from their balconies to observe the aerial activity, including flares lighting up the night sky.


Sources in the defence and security establishment said the S-400 missile defence systems, surface-to-air missiles and the integrated counter unmanned aircraft system were used in thwarting the Pakistani attempts.


Target Pakistan

Indian armed forces this morning targeted air defence radars and systems at a number of locations in Pakistan.


"Indian response has been in the same domain with same intensity as Pakistan. It has been reliably learnt that an air defence system at Lahore has been neutralised," the Defence ministry said.


As tensions between India and Pakistan escalated, Defence Minister Rajnath Singh said no limit will become an obstacle to protect India's sovereignty and the nation is fully prepared for such responses.


He said India has always played the role of a responsible nation exercising great restraint and it believes in resolving issues through dialogue.


"However, if anyone tries to take advantage of this restraint, they will face quality action," he said, assuring the nation that no limit will become an obstacle to protect India's sovereignty.


"We are fully prepared for such responsible responses in the future as well," he said.


Focused response

The defence ministry said India's anti-terror response on early Wednesday was "focused, measured and non-escalatory" and that Pakistani military establishments had not been targeted.


"It was also reiterated that any attack on military targets in India will invite a suitable response," the ministry said.


It said Pakistan has increased the intensity of its unprovoked firing across the Line of Control using mortars and heavy calibre artillery in areas in Kupwara, Baramulla, Uri, Poonch, Mendhar and Rajouri sectors in Jammu and Kashmir.


"Sixteen innocent lives have been lost, including three women and five children, due to Pakistani firing," the ministry said.


Here too, India was compelled to respond to bring mortar and artillery fire from Pakistan to a halt, it said.


The defence ministry said the Pakistani military attempted to target Awantipura, Srinagar, Jammu, Pathankot, Amritsar, Kapurthala, Jalandhar, Ludhiana, Adampur, Bhatinda, Chandigarh, Nal, Phalodi, Uttarlai, and Bhuj on Wednesday night.


Choice of de-escalation is with Pakistan: Misri

The choice of de-escalation is with Pakistan as it escalated the situation with the Pahalgam terror attack and India only responded to it through Operation Sindoor, Foreign Secretary Vikram Misri said on Thursday.


His comments at a media briefing came amid heightened tensions between the two countries.


Misri said escalation started from that side (Pakistan) with the April 22 Pahalgam attack in which 26 people, mostly tourists, were killed.


"Our approach is not to escalate the situation, we only responded to the April 22 Pahalgam terror attack," he said.


On de-escalation of the situation, Misri said, "Pakistan escalated the situation, we only responded. Choice is with Pakistan."


He said at the UNSC meeting, Pakistan opposed mention of the role of terror group The Resistance Force (TRF) when it had already claimed responsibility for the Pahalgam attack.


The foreign secretary also said the retaliatory actions of Pakistan are impacting civilians, referring to firings along the Line of Control in Jammu and Kashmir.


"Pakistan's reputation as the centre of global terrorism is rooted in various terrorist attacks across the globe," Misri, flanked by Wing Commander Vyomika Singh and Colonel Sofia Qureshi, said, adding Pakistan has been pursuing cross-border terrorism against India for decades.


He said India's action on Wednesday was restrained and it was confined to terrorist infrastructure.


Nikki Haley backs India

New York: Indian-American Republican leader Nikki Haley on Thursday said that India had “every right” to retaliate and defend itself after the Pahalgam terror attack, asserting that Pakistan does not get to play the "victim".


"Terrorists launched an attack that killed dozens of Indian citizens. India had every right to retaliate and defend itself. Pakistan does not get to play the victim. No country gets a pass for supporting terrorist activity," Haley said in a post on X.


Blackout and blast sounds

  • Sounds resembling blasts caused panic in Jammu city late on Thursday evening as security forces detected Pakistani drones near the heavily-guarded airport here. It was not immediately known whether the airport, which also houses an Indian Air Force station, is under attack.

  • Jammu plunged into darkness with electricity snapped soon after two powerful explosions were heard in the vicinity of the airport.

  • A blackout was enforced in Punjab's Pathankot and Amritsar districts on Thursday evening. There were reports of a loud noise heard in Pathankot which some feared could be shelling from Pakistan but there was no confirmation.

  • A loud sound, likely of shelling, was heard in Jaisalmer on Thursday, police sources said. A top officer confirmed that a sound was heard in Jaisalmer. Forces are on high alert and border districts remain under a blackout.

  • The IPL match between Punjab Kings and Delhi Capitals in Dharmshala on Thursday was called off due to security reasons following air raid alerts in nearby areas, which forced a blackout in the hill town.

  • A total blackout was enforced in several parts of the border districts of Kutch and Banaskantha in Gujarat. Both Kutch and Banaskantha districts share a border with Pakistan. Officials confirmed that several parts of Kutch, including Bhuj, Nalia, Nakhatrana and Gandhidham towns, have been put under total blackout as a precautionary measure to deter any offensive gesture by Pakistan.

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