Can I Withdraw Money From Sbi Mutual Fund

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WITHDRAW HAPPINESS THAT'S TAX EFFICIENT

HOW DOES SWP WORK IN YOUR INVESTMENT IN AN EQUITY Mutual Fund (GROWTH OPTION)

Date of your SWP	A NAV	B Invested / (SWP) Amount	C Units withdrawn through SWP B/A	D Balance units	E Cost of investment C* 10.5607	F Profit SWP amount (30,000) - E	G Tax on profit F *15.45% STCG (for withdrawals within 1 year)	H Net Profit F - G	Value Balance Units D*A
1-May-16	10.5607	50,00,000	4,73,453	4,73,453
1-Jun-16	10.7545	-30,000	-2,790	4,70,663	29,464	536	83	453	50,61,745
1-Jul-16	10.8739	-30,000	-2,759	4,67,904	29,137	863	133	730	50,87,941
1-Aug-16	11.1667	-30,000	-2,687	4,65,217	28,377	1,623	251	1,373	51,94,939
1-Sep-16	11.2436	-30,000	-2,668	4,62,549	28,176	1,824	282	1,542	52,00,716
1-Oct-16	11.3277	-30,000	-2,648	4,59,901	27,965	2,035	314	1,721	52,09,621
1-Nov-16	11.3389	-30,000	-2,646	4,57,255	27,944	2,056	318	1,739	51,84,769
1-Dec-16	11.0131	-30,000	-2,724	4,54,531	28,767	1,233	190	1,042	50,05,795
1-Jan-17	10.9784	-30,000	-2,733	4,51,798	28,862	1,138	176	962	49,60,019
1-Feb-17	11.3074	-30,000	-2,653	4,49,145	28,018	1,982	306	1,676	50,78,662
1-Mar-17	11.4033	-30,000	-2,631	4,46,514	27,785	2,215	342	1,873	50,91,733
1-Apr-17	11.5661	-30,000	-2,594	4,43,920	27,394	2,606	403	2,203	51,34,423
1-May-17	11.6562	-30,000	-2,574	4,41,346	27,183	2,817	435	2,382	51,44,417
1-Jun-17	11.8627								52,35,555

BENEFIT OF USING SWP FOR WITHDRAWALS

Particulars	Invested Amount	SWP Amount withdrawn in 1 year	Principal Component in the withdrawals	Growth/Gains over principal amount	Tax 15.45% STCG (for withdrawals within 1 year)	Tax as % of SWP amount withdrawnduring the year	J Balance units at end of the year	Value ofInvestments J* Current NAV
Amount	50,00,000	3,60,000	3,39,072	20,928	3,233	0.90%	4,41,346	52,35,555

TAX PAID THROUGH TRADITIONAL SAVINGS INSTRUMENT

As you can see, withdrawals through SWP are tax-efficient as you only pay 3,233 as tax on your gains, i.e. 0.90% on withdrawals of 3.6 lakhs, as compared to a traditional savings instrument where you pay 1,11,240 on your gains.

Source: Internal data compilation. Note: The above examples including the taxation illustration for traditional investment are given for general information only. Units and numbers in the above calculations have been rounded off. Investments made in equity mutual fund schemes carry high risk and there is no assurance or guarantee that the objective of the schemes will be achieved. The above illustration should not be considered as any guarantee of returns to the investors / who are opting for SWP. In view of the individual circumstances and risk profile, each investor is advised to consult their investment/tax advisor(s) before making a decision to invest. Valuation date – June 1, 2017. The date of enrolment for SWP has been assumed as 1st of every month. If such date is a non-business day, then the SWP is processed on next business day. In the above calculations, it has been assumed that investor falls under highest tax bracket (i.e. 30%) and total income of the investor does not exceed Rs. 1 crore. Gains on the redemption of units of mutual fund are treated as capital gains for income tax purpose. For equity-oriented schemes, gains on the investment for <=1 year are treated as Short-Term Capital Gains (STCG) and taxed at 15% while gains on investment greater than 1 year are treated as Long-Term Capital Gains (LTCG) and are exempt as per current tax regulations. Calculations of tax include the amount of tax plus surcharge. At the time of the redemption of units, redemption amount comprises two parts. One is the invested amount and the other is gains on the invested amount. STCG/LTCG tax is applicable only on the gains made on the redemption units. In case of Systematic Withdrawal Plan (SWP), at the time of redemption of each instalment, investor needs to pay STCG/LTCG tax only on the gains part and not on the invested amount. Over a period of time with market appreciation, in each SWP instalment, invested amount (principal) component decreases and growth/gains part increases. Thus it helps the investor over a period of time to consume less principal amount and thereby allowing the balance principal amount to grow further.