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Sir, as a distributor I too believe investor interest is paramount so may I humbly suggest you to abolish exit load so clients with immediate requirement of cash flow can withdraw without any hurdle. Hope this gets implemented very soon. I believe impact of exit load abolition is not meaningful considering investors interest.
Dear Mr Jay, Of course starting SWP from 2nd year has its own advantage. But we are discussing those investors who need cash flow immediately like those offered by deposits. Further, impact of clawback is not meaningful considering that only part amt is withdrawn. We believe investor interest is paramount. Trust this clarifies...
A SWP of Rs.10,000/- from a equity balanced. Fund deposit of Rs.10,00,000/- from 2nd year could also be good option
The above illustration is just an illustration, distributors please do not try this on your clients. In reality SWP executed from the next month of purchase date has commission clawback and if additional purchase is done in the same folio and SWP withdrawal amount is increased then there is for sure exit load (if it crosses 15% withdrawal limit) to be paid by the investor. Both the above factors benefits the AMC and its a loss for the distributor and investor. Its better to start SWP from the beginning of 2nd year and please take care of the 15% withdrawal limit. I am sharing this out of my own experience.
Its True,
Absolutely True. The concept of SWP has a great potential. It can surely help shifting money from FD to MFs. SWP is win win situation for Client as he has a potential to increase his wealth apart from receiving regular income, for IFAs and AMC to gather quality long term assets.
Swp information is good option for retired person. Thanks for information in details