Financial planners say there are two broad approaches. One is valuation-based, where investors redeem or book profits when markets appear expensive and then use or redeploy the proceeds. The other is to set up a systematic withdrawal plan (SWP), which allows investors to withdraw a fixed amount at regular intervals, typically on a pre-defined date each month. To meet this payout, the fund house redeems the required number of units based on the prevailing NAV, while the remaining corpus continues to stay invested.
From Corpus to Cash Flow: Picking the right mutual fund withdrawal strategy
Financial planners say there are two broad approaches. One is valuation-based, where investors redeem or book profits when markets appear expensive and th…
