SBI Mutual Fund on Thursday announced the introduction of ‘Bandhan SWP (Systematic Withdrawal Plan) to send monthly cash flows from individual’s mutual fund investments to their immediate family members. ‘Bandhan SWP’ is tax-efficient solution as any fund transfer to immediate family members is considered as a gift under the law and does not attract any taxation which makes it more beneficial than a dividend payout option. Upwardly.in presents few FAQ’s to appease your queries.
Who can opt for this?
For new investor: You will have to first invest in a SBI Mutual Fund scheme and then opt for this facility.
For existing investor: If you have investments under dividend payout and dividend reinvestment option, you can avail this facility by switching investments to the growth option.
This facility is only available for investments in a growth option of an open-ended mutual fund scheme offer by SBI mutual fund.
Who can be my beneficiary?
The beneficiary, can be your spouse, parent, child or sibling, must be resident individual only, and not hold NRI status. Currently the option can only be availed for a single relation.
Any withdrawal conditions?
The minimum withdrawal amount if Rs 5,000 per month for a period of 12 months.
SWP is dubbed to be a tax efficient solution for individuals in the current LTCG tax regime. We at Upwardly.in will calculate and intimate you on the right redemptions that you should make and how to roll over the positions to lower the tax burden.
Start your investments in the best mutual funds and save taxes at www.Upwardly.in