For regular income from investments, for pension or just additional money per month, most of the people instantly think only of interest from bank FDs, insurance pension policies, the payouts of Senior Citizens Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) or Pradhan Mantri Vaya Vandana Yojana (PMVVY), little realising that these are low returns schemes which are also very heavily taxed. A much better alternative is the SWPs (Systematic Withdrawal Plans) of mutual funds which are an exact opposite of SIPs. They are much more tax-efficient, earn better, have full flexibility of when to start, how much and till when to withdraw, increase or decrease the amount as required and restart/stop at one’s convenience. One can be 100% safe or as risky as one wants. If planned properly, one may pay a tax of just about 6-7% on the amount withdrawn compared to 20-30% on other options.
