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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)

‘My father would be at peace, expect more’

  • PTI
  • May 7, 2025
  • 5 min read

Mumbai: Harshal Lele, who lost his father and two uncles in the Pahalgam terror attack, expressed a sense of closure after Indian Armed Forces carried out Operation Sindoor against terror bases in Pakistan in the early hours of Wednesday.


"I am satisfied, my late father would now be at peace," said Lele, who saw his father and uncles being shot before his eyes on April 22.


"One of my uncles pleaded with the terrorists to let them go, but he was shot dead. No mercy was shown to him, nor to my other uncle or my father," he recalled.


"I am happy with the way Operation Sindoor was carried out. The nine locations from where these terrorists operated were struck. It is our expectation that more such actions should be taken," he told reporters in Dombivli, Thane district.


Harshal's father Sanjay Lele and his relatives Atul Mone and Hemant Joshi were among the 27 persons who lost their lives in the terrorist attack on April 22.


Navi Mumbai resident Subodh Patil (60), who was injured in the neck during the Pahalgam attack, also expressed satisfaction.


"I will say it is good that India took revenge."


Perpetrators too should be eliminated: victim's wife

Indore: The wife of Pahalgam terrorist attack victim Sushil Nathaniel on Wednesday said she wanted the four terrorists who killed her husband dead too.


"Whatever that has happened is right, but those four people (terrorists involved in the Pahalgam attack) should also be eliminated," said Nathaniel's wife Jennifer (54), speaking o reporters here.


"These four people did what even an animal would not do. I just want an account of this and these people should also get the same punishment. These four people should also die," she said.


Sushil Nathaniel worked as a manager with Life Insurance Corporation of India (LIC) in Alirajpur, about 200 km from Indore.


Fitting tribute to victims: Jagdale


Pune: Pragati Jagdale, whose husband Santosh was one of the 26 people killed in the Pahalgam terrorist attack, on Wednesday described 'Operation Sindoor' as a fitting tribute to the victims.


"Through Operation Sindoor, a tribute has been paid to those who were killed in the Pahalgam attack. I am thankful to Prime Minister Narendra Modi for carrying out Operation Sindoor. I am thankful that our emotions have been understood. Our sindoor was wiped out by terrorists but today I am very happy that under Operation Sindoor, our armed forces destroyed terrorists' bases in Pakistan," said Jagdale.


She knew that India will take revenge for the terrorist attack in Pahalgam, she said. Asavari Jagdale, the couple's daughter, said India responded to the terror attack within 15 days.


"I am very thankful and feel proud that our armed forces have given a befitting reply through airstrikes," she said.


Sangita Ganbote, wife of Kaustubh Ganbote who was another Pune resident to be killed in the April 22 Pahalgam attack, said they were extremely happy that India avenged the Pahalgam terrorist attack in which she and other women lost their "sindoor".


Modi has avenged terror attack: Narwal's mother

Chandigarh: Pahalgam terror victim Navy officer Lt Vinay Narwal's mother, Asha Narwal, on Wednesday hailed India for avenging the April 22 attack and said their entire family and people of the country stand with the government.


"It is a very good thing that (Prime Minister Narendra) Modi has avenged the (Pahalgam) attack. I am with them (the govt), people are with them, and our entire family is with them," Asha told reporters in Karnal.


"I want to tell our Army to give a befitting reply so that such incidents (like Pahalgam) do not occur again," she said and added that those who got martyred have got justice.


Married about three weeks ago, Narwal (26), accompanied by his wife Himanshi, was on a honeymoon in south Kashmir's Pahalgam town when terrorists shot him at point blank, an incident in which 25 others, mostly tourists, were also killed.


Victim's daughter welcomes operation

Kochi: Arathy, daughter of N Ramachandran who was gunned down by terrorists in Kashmir's Pahalgam, on Wednesday welcomed Indian Army's "Operation Sindoor" and expressed hope that it would bring some relief to the families of those killed in front of them.


She also extended a "big salute" to Prime Minister Narendra Modi, Indian Army and the union government for the missile strikes against terror camps in


Pakistan and Pak-occupied Kashmir.


Talking to reporters here, Arathy also said there won't be any other suitable title for the strikes other than "Operation Sindoor".


There could have been no befitting reply other than this to the terrorism which had killed our fathers, brothers or husbands in front of us, she said.


"So, a big salute for those who have done this operation. A big thank you to the government, the Prime Minister and the army people who have been working for this operation...who have been behind it continuously," she said.


Arathy also said she and her family are praying for the Army.

"Let all Indians see a comfort in this operation. Let Operation Sindoor bring some comfort and relief to all the families of victims, including Himanshi (Narwal)," she added.


Had faith in PM Modi: Victim’s mother

Shivamogga (Karnataka): Sumathi, the mother of Manjunath Rao, a Pahalgam terror attack victim, welcomed the air strikes carried out by Indian armed forces on nine terror targets in Pakistan on Wednesday and said she had faith in Prime Minister Narendra Modi.


She also said that she did not want her son's "sacrifice" to go waste.


She said, it is not a feeling of satisfaction, as her son who has killed won't come back, but such things should not happen to others' children.


"We had faith that Modi will take right decision and accordingly he has taken. Nothing should happen to innocents, but those who try to oppress or indulge in roguery against us should not be spared. My son's sacrifice should not go waste. I feel that the right decision has been taken," Sumathi told PTI videos.


"We knew that something will be done. We are common people and not big to give suggestions to leaders," she added.


‘Justice delivered’, says family of Adhikary

Kolkata: The families of Samir Guha and Bitan Adhikary, two West Bengal residents, who were killed in the recent terror attack on tourists in Kashmir's Pahalgam, on Wednesday expressed satisfaction over India's strike on terror camps in Pakistan and Pakistan-occupied Kashmir, calling it a "step towards justice".


Guha and Adhikary, both residents of Kolkata, were killed in the Pahalgam terror attack on tourists last month.


"I am happy that our country has hit deep into the heart of the terror camps. We would request that this attack must continue till terrorism is wiped out from our neighbourhood," Guha's wife said, speaking to reporters at her home.


Though still grappling with the shock, she said the strong response from the Indian government had brought a sense of relief and hope to the grieving families.


Guha's brother-in-law thanked the Centre for the prompt and stern action.


"We thank the central government for this tough response. Justice has been delivered. This will send a clear message that such attacks will not go unanswered," he said.


The Adhikary's family echoed similar sentiments.


"This is not just about Bitan. Many innocent lives were lost. The government has done the right thing by acting swiftly," said one of Adhikary's cousins.

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