If you want to become rich quickly, consider SWP along with SIP. Find out how much your wealth will grow.

SIP or SWP: Which Is a Better Option: If you want to become rich quickly, consider SWP along with SIP. This method not only increases your wealth but also provides an opportunity to use it when needed.

SIP or SWP: Which Is Better Option: Nowadays, many people invest in various avenues to earn more money. Many people invest money through SIP. If you want to become rich quickly, just investing through SIP is not enough. SIP, or Systematic Investment Plan, helps grow wealth in the long term. However, if you withdraw some money from time to time and reinvest it properly,

Your wealth can grow even faster. SWP, or Systematic Withdrawal Plan, can be used for this purpose. This method not only allows you to benefit from investment returns but also provides liquidity. By combining SIP and SWP, you can smartly leverage your money for both growth and returns. Let's explain the details.

How does money grow with SIP?

In a SIP, you invest a fixed amount every month or year. This reduces the impact of market fluctuations and benefits from compounding. Let's say you invest Rs 10,000 every month in an equity mutual fund with a 12% return.

So, in 20 years, your investment could reach approximately Rs 80 lakh. Regular investments in SIPs can help you accumulate a significant amount over the long term. SIPs also offer tax-saving options, such as ELSS funds, which offer tax relief along with investment.

How can SWPs increase profits?

Many people are aware of SIPs, but many are unaware of SWPs. SWP, or Systematic Withdrawal Plan, means withdrawing small amounts from your investments periodically. The advantage of this is that your money isn't completely locked up, and you can access it whenever needed. Suppose you've accumulated a substantial amount through SIP.

You can withdraw a small portion each year and invest it in a safe debt fund. This will allow your money to grow and keep some of it safe. The advantage of SWP is that it provides both regular income and growth. This means you won't run out of money, and your investment will continue to grow.