SBI Mutual Fund offers extra credit facility under systemic withdrawal plan

SBI Mutual Fund has introduced additional facility "Bandhan - SWP" under systematic withdrawal plan for eligible schemes, with immediate effect, the fund house said in a newspaper notice today.

This facility is offered on open-ended funds with growth option. The fund house also provides periodic payment to eligible beneficiaries.

The beneficiaries includes spouse, parents, sibling and children aged above 15 years, wherein the individual investor can choose any one of his beneficiary for monthly payment while availing systematic withdrawal plan.

Earlier, the redeemed amount under the facility was credited to investors account only.

Further, unit holders under dividend payout or dividend reinvestment option can opt the facility by submitting a switch application to growth option.

The minimum number of monthly instalment should be 12 and the amount for withdrawal required to avail the facility is 5,000 rupees and in multiples of 1 rupee thereafter.

The redemption date for the facility under monthly frequency will be same as the existing monthly systematic withdrawal plan offers that is, on 1st, 5th, 10th, 20th ,25th and 30th of the month.

Investments or payouts under the facility will be subject to exit load, tax as applicable to the respective schemes.

Unit holders can discontinue the facility by submitting cancellation request to the fund house or the asset management or to registrar and transfer agents, at least seven days before the next systematic withdrawal date.