“The (FAB) plan design allows for a fixed withdrawal amount regardless of short-term market fluctuations,” according to Akhil Chaturvedi, Chief Commercial Officer, Motilal Oswal AMC.
Motilal Oswal Asset Management Company (MOAMC) on Monday, February 20, announced a new feature in the Systematic Withdrawal Plan (SWP) feature to give investors more control over planning their long-term financial goals.
Under the Motilal Oswal Fixed Amount Benefit (FAB) program, investors have a product, a fully digitized dashboard and a detailed calculator to customize their cash flow needs. The company said that with this plan, the investor will receive the fixed amount of cash flow with 100% consistency regardless of the market situation and movements in the NAV.
The investor can start with a minimum withdrawal amount of Rs 500 per month or more depending on his cash flow needs.
The frequency can be specified as monthly, quarterly or annually at a default withdrawal rate of 6%, which the investor can change to choose between 8%, 10%, 12% per year.
The default withdrawal date is set to the 7th for each month, but can be changed to choose between the 1st, 14th, 21st or 28th.
Investors can withdraw the regular sum of their investments at a fixed percentage and at a predefined frequency of their initial investments, regardless of the evolution of the market value of their investments. The balance component continues to generate returns, which provides tax efficiency as well as wealth generation compared to other investment avenues.
Commenting on the launch of the new feature, Navin Agarwal, MD and CEO, Motilal Oswal Asset Management Company said, “Retirement planning can be a daunting task, but with the right investment strategy, it can also be an opportunity. exciting way to ensure financial stability in your golden years. FAB offers an excellent option not only for retirees, but also for other investors looking for a reliable source of income, with the potential to generate regular returns on their investments. »
According to Akhil Chaturvedi, Chief Commercial Officer of Motilal Oswal AMC, “The main feature of the FAB plan is that it helps an investor aim for an enhanced investment experience compared to traditional instruments. The design of the plan allows for a fixed withdrawal amount regardless whatever the short term. – fluctuations in the futures market.
“To make the most of this investment opportunity, investors should educate themselves about the intricacies of mutual fund returns and the withdrawals needed to maintain the desired lifestyle. By combining other securities with a PRS, people can maximize their investment returns and minimize risk, ensuring a comfortable and worry-free retirement,” Agarwal added.
(Edited by : Shoma Bhattacharjee)
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