SBI Mutual Fund Bandhan SWP | How SBI Bandhan SWP Works

SBI Mutual Fund Bandhan SWP | How SBI Bandhan SWP Works

SBI Mutual Fund introduced Bandhan SWP (Systematic Withdrawal Plan), a tax efficient option to offer monthly cash flow from your mutual fund investments to your immediate family member. The amount can be directly credited to the bank account of your spouse, parents, children or siblings, thus allowing you to gift money to your family members in an innovative and hassle-free way. In this post, let’s take a look at how SBI Mutual Fund Bandhan SWP works.

SBI Mutual Fund Bandhan SWP

SBI Mutual Fund Bandhan SWP is a facility that helps you provide regular pay-outs to your immediate family members (spouse, parents, siblings or children) from the growth option of your investment in eligible open-ended schemes of SBI Mutual Fund. SBI Bandhan SWP is a Systematic Withdrawal Plan which allows you to withdraw a fixed amount regularly from your existing mutual fund investments. SBI Mutual Fund Bandhan SWP is a family solutions initiative by SBI Mutual Fund.

Also read: How to invest in mutual fund online?

Beneficiary under SBI Mutual Fund Bandhan SWP

The beneficiary should be your immediate family member: Spouse, Parents, Children, or Siblings (aged 15 years and above). The beneficiary availing the facility should be a resident individual.

What are the Benefits of SBI Mutual Fund Bandhan SWP?

Following are some benefits of SBI Mutual Fund Bandhan SWP

1. Regular cash flows to your loved ones

SBI Bandhan SWP plan will help you to fulfill the financial need of your loved ones at regular intervals when they need it.

2. Tax efficient solution

SBI Mutual Fund Bandhan SWP is a tax-efficient solution for the beneficiary. A fund transfer to the immediate family member is considered as a gift and there is no Gift tax as per the prevalent tax laws.

3. Long-term wealth creation opportunity

SBI Bandhan SWP provides monthly cash flows and your remaining investment is positioned for possible capital appreciation in invested in the right SBI mutual fund.

Also read: All about ELSS | Tax saving mutual fund

How SBI Mutual Fund Bandhan SWP works

Follow the below-mentioned steps to start SBI Mutual Fund Bandhan SWP

1. Choose your mutual fund scheme

Select from your existing or new investment under the growth option of eligible open-ended SBI mutual fund schemes.

2. Initiate SBI Bandhan SWP

Fill up the form to start SBI Bandhan SWP facility, specifying beneficiary details, withdrawal amount, duration, frequency and other details.

3. Submit documents

Submit beneficiary documents like Proof of Address, Proof of Identity, Relationship Proof and Bank Account Proofs.

4. Give confidence

Inflows will get credited to the beneficiary’s bank account on respective date.

Documents required for SBI Bandhan SWP

If the beneficiary is KRA complaint, acknowledgment copy is required. Else investor should submit relevant verifiable documents evidencing proof of identity and proof of address.

2. Proof of relationship such as Passport, PAN card, Birth Certificate, SSC / Degree certificate, Marriage Certificate, etc.

3. Canceled cheque leaf of the bank account or a copy of bank statement/passbook of the beneficiary.

4. The unitholders opting for SBI Bandhan SWP facility shall take the prior written consent from the beneficiary family member for sharing the pay-out through SBI Bandhan SWP.

Minimum amount to pay-out using SBI Bandhan SWP

The amount of pay-out will be minimum Rs.5000/- and in multiples of Rs.1/- thereof. A minimum number of monthly installments would be 12.

Frequency for SBI Mutual Fund Bandhan SWP

The only monthly option is available under SBI Bandhan SWP. You can select any one of the given dates: 1st/5th/10th/15th/20th/25th/30th (last working day in case of February).

How to cancel an existing SBI Bandhan SWP?

You can cancel an existing SBI Bandhan SWP facility anytime by submitting a cancellation request to SBI Mutual Fund / SBI Funds Management Private Limited or CAMS (R&T) office. Such request should be submitted at least 7 days prior to the next SWP date.

Also, read: How to start a SIP?

Also, read:  InvesTap | SBI Mutual Fund Investment App                               

Also, read: Benefit of SIP | Advantages of SIP

Also, read: SBI loan against mutual funds

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SBI Mutual Fund Bandhan SWP | How SBI Bandhan SWP Works