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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)

Masood's 10 family members killed

  • PTI
  • May 7, 2025
  • 3 min read

By M Zulqernain

Pak soldiers and others attend the funeral prayers of the victims of a suspected Indian missile strike incident in Muridke on Wednesday. Pic: PTI
Pak soldiers and others attend the funeral prayers of the victims of a suspected Indian missile strike incident in Muridke on Wednesday. Pic: PTI

Lahore: Jaish-e-Mohammad (JeM) chief Maulana Masood Azhar acknowledged on Wednesday 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 statement further mentioned that the attack also claimed the lives of one of Azhar's close associates and his mother, along with two other close companions.


"This act of brutality has broken all boundaries. There should be no expectation of mercy now," it added.


Bahawalpur became the hub of the JeM after the release of Azhar in exchange for the hijacked passengers of IC-814 in 1999.


In May 2019, the United Nations designated Azhar a "global terrorist" after China lifted its hold on a proposal to blacklist the JeM chief, a decade after New Delhi approached the world body for the first time on the issue.


The elusive Azhar, who has not been seen in public since April 2019, is believed to be hiding in a "safe place" in Bahawalpur.


The group has been involved in a series of terror attacks in India, including the Parliament attack in 2001, the strike on the Jammu and Kashmir assembly in 2000, the attack on the IAF base in Pathankot in 2016 and the Pulwama suicide bombing in 2019.


Meanwhile, Punjab Information Minister Azma Bokhari said that all those injured in the Bahawalpur attack have been shifted to Victoria Hospital and given the best treatment.


Pakistan's security huddle discusses situation

Islamabad: Pakistan's high-level security huddle on Wednesday discussed the situation arising out of the Indian missile attack.


Indian armed forces early Wednesday carried out missile strikes on nine terror targets in Pakistan and Pakistan-occupied Kashmir under Operation Sindoor.


Prime Minister Shehbaz Sharif presided over the National Security Council (NSC) meeting, which was attended by cabinet ministers, chief ministers, all services chiefs and senior officers.


The NSC meeting lasted for more than two hours and discussed the security situation at length.


However, no decisions were announced as Sharif has summoned a cabinet meeting at 3:30 pm to further discuss the developments. “Later, he would share the decisions regarding the ongoing tension with the nation through his address in the parliament,” officials said.


Earlier, the Pakistan army said that at least 26 people were killed and 46 injured in the Indian strikes launched shortly after midnight on cities in the Punjab province and Pakistan-occupied Kashmir (PoK). Army spokesman Lt Gen Ahmad Sharif Chaudhry claimed “no time Indian aircraft was allowed to enter Pakistan and no Pakistani aircraft entered India. All Pakistan Air Force (PAF) assets are safe.”


Emergency declared in Pakistan's Punjab

Emergency was declared on Wednesday in Pakistan's Punjab province even as all educational institutions closed in the wake of the Indian missile attack.


The Pakistan army said that at least 26 people were killed and 46 injured in the Indian strikes launched shortly after midnight on cities in the Punjab province and Pakistan-occupied Kashmir (PoK).


“Punjab Chief Minister Maryam Nawaz has declared a state of emergency across the province,” a Punjab government statement said here.


All security agencies, including Punjab police, have been placed on high alert. Leaves of all doctors and medical staff across hospitals in Punjab have been cancelled.


The statement said all staff have been ordered to report for duty immediately and district administrations in all districts of Punjab have also been placed on high alert.


Officers and personnel of all relevant institutions, including Civil Defence, have been summoned, it said.


The educational institutions would remain closed on Wednesday, the statement said.

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