Motilal Oswal Asset Management Company (MOAMC) on Monday, February 20, announced a new feature in the systematic withdrawal plan (SWP) facility to empower investors with more control in planning their long-term financial goals.
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Under the Motilal Oswal Fixed Amount Benefit (FAB) scheme, investors are provided with a product, a completely digitised dashboard, and a detailed calculator for customising their cash flow requirements. The company said with this plan, the investor will receive the fixed cash flow amount with 100 percent consistency irrespective of the market situation and NAV movements.
The investor can start with minimum withdrawal amount of Rs 500 per month or above depending on their cash flow requirement.
The frequency can be marked as monthly, quarterly or annually at a withdrawal rate of 6 percent as default, which the investor can change to choose from either 8 percent, 10 percent, 12 percent per annum.
The default withdrawal date is set at 7th for every month but can be changed to choose from either 1st, 14th, 21st or 28th.
The investors can withdraw the regular sum of their investments at a fixed percentage and predefined frequency of their original investments, irrespective of the movement in the market value of their investments. The balance component continues to generate returns, which provides tax efficiency as well as wealth generation relative to other investment avenues.
Commenting on the launch of 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 exciting opportunity to secure financial stability for your golden years. FAB provides an excellent option for not only retirees but also other investors seeking a reliable source of income, with the potential to generate steady returns on their investments."
According to Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, "The key feature of the FAB Plan is that it helps an investor to aim for an enhanced investment experience over traditional instruments. The design of the plan enables fixed withdrawal amount irrespective of short-term market fluctuations.”
"To make the most of this investment opportunity, investors must educate themselves on the intricacies of mutual fund returns and the necessary withdrawals for sustaining their desired lifestyle. By combining other securities with an SWP, people can maximise their investment returns and minimize risk, ensuring a comfortable and worry-free retirement," Agarwal added.
