I want to invest in mutual funds to generate monthly income. Without taking much risk - can you suggest me the funds for monthly returns?Asked
In order to generate monthly income (regular intervals) one may opt for Systematic Withdrawal Plan or SWP. SWP allows you to withdraw a fixed amount of money from a mutual fund at a fixed interval.
SWP is somewhat the reverse of SIP. If you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw.SWPs help you reduce your exposure to risk. Every investment has its share of risks. SIP takes advantage of averaging to help you reduce exposure to risk. SWP does the same. If you’ve invested in a mutual fund in a lump sum manner, by withdrawing a fixed amount regularly, you ensure your returns are averaged and you are protected from any volatile market movements.
Few suggestions are-