I want to do SWP from Liquid fund to Equity this way.
I have invested in ICICI liquid fund. And i want to SWP to another AMC. So what if i start SWP from ICICI liquid every month and start SIP from that money.
For example i have 1lakh in ICICI liquid fund. I start SWP of 5000,and start SIP to parag parikh long term equity fund of 5000.
I checked parag parikh liquid fund but ICICI is better performing.
Is it good way?
Are you referring to STP (Systematic Transfer Plan)?
Kindly note that STP investment can be undertaken between the mutual funds of the same fund house (AMC).
Paragh Parikh Liquid fund portfolio has high rated and very low risk securities hence the lower returns when compared to the other fund.
Yes I know STP is processed in same AMC fund. But I am asking with SWP.
I am doing 5k SIP in parag parikh long term equity fund. For 1yr SIP its 60k
So instead of keeping money in savings account is it ok if I keep in the icici liquid fund and perform SWP of 5k every month to my icici account, and that then invested in parag parikh SIP?
May I know, by doing this what are you going to achieve?
The bank savings account gives now <3% returns so i thought to put the money in liquid fund which provides better returns than savings account
1 – When you redeem some units (SWP), note that the gains (if any) are subject to taxes.
2 – You need to manually redeem the units and then re-invest the amount in your shortlisted fund.
3 – Note that Liquid funds can also give negative returns unlike your Savings bank a/c.