🔥🔥 Regular Income From Stock Market
If you have 10 lacs and you want regular income from the stock market, one option is SWP Mutual fund. This is how it can work.
you invest this 10 lacs in a SWP mutual fund and for the first year don't withdraw any money otherwise you will end up paying 20% tax on profits.
Let's say in 1st year, your mutual gives you 12% return so your 10 lacs become 11 lac 20k. Profit of 1 lac 20,000
In 2nd year, you can start withdrawing 10k per month and this is how the 1 lac 20,000 profit you earned in the first year can be withdrawn in 2nd year. 2nd year’s profits can be withdrawn in 3rd year and so on.
And more importantly on this 1 lac 20,000 you will NOT need to pay any tax because profits up to 1 lac 25 k are exempt from tax.
What if your mutual fund gave you 6% return instead of 12% in that case withdraw only 5k per month.
Mutual fund returns are NOT guaranteed so your withdrawal rate needs to match with the returns your SWP may generate.
Also It's possible that mutual funds may give negative returns for short term but in long term, they are unlikely to give overall negative returns.
