Mutual funds with monthly returns

[danpenapena2]

Hi,

I heard about some kind of mutual funds that provide monthly returns in the banks. I couldn't get the details. Wonder if anyone has heard about these.

 

[wcgxlr8]

Are you referring to SWP?

 

[saurabh.s]

Hi,

I heard about some kind of mutual funds that provide monthly returns in the banks. I couldn't get the details. Wonder if anyone has heard about these.

Are you referring to IDCW Plan? (Income Distribution cum Capital Withdrawal)

 

[danpenapena2]

Are you referring to IDCW Plan? (Income Distribution cum Capital Withdrawal)

Yes exactly, thank you!!

 

[danpenapena2]

Are you referring to SWP?

So in this the monthly money that comes to our account - does that come by selling a portion of the investment?

 

[wcgxlr8]

So in this the monthly money that comes to our account - does that come by selling a portion of the investment?

Yes, but if you invest a high enough lumpsum and take a steady CAGR of 10% (lower side), you can keep making monthly income from SWPs and your amount will remain the same or even increase based on your withdrawal amount. for example, if you invest 20L with a CAGR of 10% for 10 years, you can make a monthly income of ~ 15.5K.