systematic withdrawal plan


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Systematic withdrawal plan

A provision of certain mutual funds to pay out to the shareholder specified amounts after specified periods of time.

Systematic Withdrawal Plan

A way to receive regular payments from an annuity, mutual fund, or other investment vehicle. One way of conducting a systematic withdrawal by selling one's interest in an investment vehicle slowly over time and keeping the cash from the sales. This reduces the risk that the investor will sell all of one's interest at once and receive a lump sum payment when the market is in a downturn. Systematic withdrawals may occur automatically, such as in Social Security or in some retirement plans.

systematic withdrawal plan

References in periodicals archive ?
Opting for a systematic withdrawal plan (SWP) reduces the risk of irregular cash flow.
The Mutual Fund Plaza enables customers of ICICIdirect to transact online in a paperless environment in various Mutual Fund schemes through user-friendly transactions including Purchases, Redemptions, Switches and Systematic Investment Plans (SIP) and Systematic Withdrawal Plan (SWP).
com: exchanges, redemptions, purchases, address changes, automatic investment plan, systematic withdrawal plan, dividend and/or capital gain changes, deposit slip order, money fund check order and historical year-end statement requests.

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