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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)

Reliance seeks to cash in on Pak assault, retracts

  • PTI
  • May 8, 2025
  • 3 min read

Mumbai: In a bizarre move, the Reliance Industries Ltd (RIL) and three other individuals filed applications seeking to patent or trademark the name ‘Operation Sindoor’ – under which India has taken revenge for the April 22 Pahalgam carnage that claimed 26 innocent lives.


Following a public furore, the Mukesh Ambani-headed RIL on Thursday quickly withdrew its application while blaming a junior person for erroneously and unauthorizedly filing it.


Additionally, three other individuals have also filed similar applications to claim the term ‘Operation Sindoor’ – a retired Group Captain K. S. Oberh, Alok Kothari and M. C. Agarwal – as social media users poured their outrage over the development.


“RIL has no intention of trademarking ‘Operation Sindoor’, a phrase which is now a part of the national consciousness as an evocative symbol of Indian bravery. Jio Studios, a unit of Reliance Industries, has withdrawn its trademark application, which was filed inadvertently by a junior person without authorization,” said an official Spokesperson.


He added that RIL and all its stakeholders are incredibly proud of ‘Operation Sindoor’, which is an achievement of our brave Armed Forces in India's uncompromising fight against the evil of terrorism.


“RIL stands fully in support of our Government and Armed Forces in this fight against terrorism. Our commitment to the motto of 'INDIA FIRST' remains unwavering,” said the company.


Withdraw application

The company today sent a letter to the effect, signed by an executive Rajesh Kumar S., withdrawing its application No.6994264 in Class 41 – without assigning any reasons - for trade-marking ‘Operation Sindoor’, to the Registrar of Trade Marks, Mumbai.


The four applications also figure prominently - RIL topping the list - on the Ministry of Commerce & Industry’s website, and many raised questions on social media how these came to be accepted in the first place.


Barely hours after the Armed Forces launched the ‘Operation Sindoor’, the RIL filed an application seeking to register the name for its ‘goods & services’ under Class 41 that covers entertainment and education services.


Many vent their ire on social media at the RIL, with some pointing accusing fingers at the company for allegedly attempting to cash in on the success of ‘Operation Sindoor’ that has now become a household name in barely 24 hours.


Reliance says it was filed inadvertently

In a statement, Reliance said it has no intention of "trademarking Operation Sindoor. "Jio Studios, a unit of Reliance Industries, has withdrawn its trademark application, which was filed inadvertently by a junior person without authorisation," it said.


Earlier, four applications, including one by Reliance, were filed with the Office of the Controller General of Patents, Designs & Trade Marks on Wednesday, seeking to use the phrase for entertainment-related services like audio and video content.


All four applicants filed between 10.42 am and 6.27 pm on May 7 for registration under Class 41 of the Nice Classification, which includes education and training services, film and media production, live performances and events, digital content delivery and publishing, and cultural and sporting activities.


This category is often used by OTT platforms, production houses, broadcasters, and event companies, suggesting that 'Operation Sindoor' could have become a film title, web series or documentary brand.


"The Reliance family is ready to support any measure in protecting our nation's unity and integrity. We like our fellow Indians believe – India seeks peace, but not at the cost of its pride, security or sovereignty."

Mukesh Ambani, Chairman and Managing Director, Reliance Industries

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