Systematic Withdrawal Plan. A facility to withdraw a fixed amount from a mutual fund at regular intervals. Often used in retirement to create a steady income stream.
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SWP
Mutual FundsFIRE Planning
Related terms
80C Deduction
Section 80C of the Income Tax Act allows deductions up to Rs 1.5 lakh per year for investments in ELSS mutual funds, PPF, EPF, NPS, and other specified instruments.
AMC
Asset Management Company. A firm that invests pooled funds from investors into securities such as stocks and bonds. Examples in India include SBI MF, HDFC AMC, and ICICI Prudential AMC.
AUM
Assets Under Management. The total market value of investments managed by a mutual fund or portfolio manager. Larger AUM generally indicates investor confidence.
Corpus
The total accumulated amount of money in an investment portfolio or fund. In FIRE planning, the target corpus is the amount needed to sustain retirement expenses.
ETF
Exchange-Traded Fund. A fund that tracks an index, commodity, or basket of assets and is traded on stock exchanges like regular shares. Nifty BeES and Gold BeES are popular Indian ETFs.
Expense Ratio
The annual fee charged by a mutual fund or ETF as a percentage of assets under management. Lower expense ratios mean more of your returns stay with you.